Another Dire Warning

Richard Fisher

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.”

That straight forward warning follows many others.  Alan Greenspan, Ben Bernanke, libertarian economists,  Obama's own debt and deficit committee, a small handful of congressmen, have all said the same thing.   Most Americans have long ago intuited a pending disaster and that is why spending remains cautious.  How on earth money is not THE most important issue in front of this administration is suspicious.

Could it be that a collapsed and bankrupt America would give Obama a splendid opportunity to remake it in the image he finds acceptable, a powerless America?

Federal reserve officials may not see it like that.  You see, they are parasites feeding off the taxpayer host and they have a great  interest in keeping the taxpayer at least alive.   Undoubtedly the bankers wish to reclaim the goodies politicians have given away over the past 50 years in order to buy votes.  Medicare, medicaid, social security, health care, welfare and the like.  They will push politicians to rein it all in but , fearful of their jobs, politicians will not stop spending.

Eventually and it looks like, slowly, the bankers will win.  The goodies will go back.  Depression will follow.  And the whole process will start over.

There will be no recovery until the process is complete.  Bond holders the world over are going to get robbed either by skyrocketing inflation or outright default.

The game is on we are told.
The tipping point is now.