Posted on Mar 22, 2011 in Economic News, Federal Reserve & Bankers
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.
Take very careful note at just how this is all worded. First, you have a Federal Reserve President saying that the nation could become insolvent soon and that whatever we do in the near-term will essentially define the next several years; the precipice of our monetary future. ...Continue ReadingLeave a Comment