Tuesday, March 22, 2011

US 'approaching' insolvency, fix to be 'very painful'

US approaching insolvency, fix to be 'very painful'from reuters: The United States is on a fiscal path towards insolvency and policymakers are at a "tipping point," a Federal Reserve official said on Tuesday. "If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when," Dallas Federal Reserve Bank President Richard Fisher said in a question and answer session after delivering a speech at the University of Frankfurt. "The short-term negotiations are very important, I look at this as a tipping point." But he added he was confident in the Americans' ability to take the right decisions and said the country would avoid insolvency. "I think we are at the beginning of the process and it's going to be very painful," he added. Fisher earlier said the US economic recovery is gathering momentum, adding that he personally was extremely vigilant on inflation pressures. Fisher added that the U.S. Federal Reserve had ways to tighten its monetary policy other than interest rates, including by selling treasuries, changing reserves levels and using time deposits.

related econocrash updates:
supreme court denies effort to bar details of fed bailout*
financial times on 'how china should rule the world'*
detroit sets national record for population loss*
toyota tells US plants 'prepare to shut down'*
mccaskill admits failure to pay taxes on plane*
liberty dollar creator convicted in federal court *
billionaires flourish, inequalities deepen as economies 'recover'*
video: warren buffet says japan crisis creates 'buying opportunity'*

1 comment:

END THE FED! said...

The irony of a Federal Reserve official stating that the US is on the path to insolvency is priceless. I think they say these things just to irritate the few people that really know what is going on. Insolvency?!?! Give a quick listen to Jan Irvin's recent interview with Clint Richardson or view Mr. Richardson's film "The Corporation Nation" to see just how "insolvent" the US truly is. END THE FED!

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