Coming financial collapse of the U.S. gov: FED reveals what's in store for Americans

guerilla Notable Member

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#1

http://www.newstarget.com/z019659.html

You can download the article from the St. Louis FED that the above link is based on.

In a remarkable paper posted by the Federal Reserve of St. Louis, and authored by a Boston University teacher named Prof Kotlikoff, it is revealed in blunt, powerful language that the era of borrowing and spending without consequence may soon come to a close. The paper, entitled, Is the United States Bankrupt?, may not remain posted for very long once the public gets word of what it actually says.
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http://research.stlouisfed.org/publications/review/06/07/Kotlikoff.pdf

Hyperinflation is inevitable
As Kotlikoff explains:

"Given the reluctance of our politicians to raise taxes, cut benefits, or even limit the growth in benefits, the most likely scenario is that the government will start printing money to pay its bills. This could arise in the context of the Federal Reserve â€œbeing forcedâ€ to buy Treasury bills and bonds to reduce interest rates. Specifically, once the financial markets begin to understand the depth and extent of the countryâ€™s financial insolvency, they will start worrying about inflation and about being paid back in watered-down dollars. This concern will lead them to start dumping their holdings of U.S. Treasuries. In so doing, theyâ€™ll drive up interest rates, which will lead the Fed to print money to buy up those bonds. The consequence will be more money creationâ€”exactly what the bond traders will have come to fear. This could lead to spiraling expectations of higher inflation, with the process eventuating in hyperinflation."
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guerilla, Jan 19, 2008 IP

soniqhost.com Notable Member

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#2

The fact that the US has promised more then it can deliver is nothing new. Greenspan talked about that during his bi-annual congressional testimony years ago.

soniqhost.com, Jan 19, 2008 IP

guru-seo Peon

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I think soniqhost Gtech, Mia, Will.Spencer and a few other fall under this description:
"The American people, as usual, remain oblivious to the financial future that awaits them. Even as the housing bubble is now beginning to burst in the nation's most overpriced real estate markets, most people don't have a clue what "hard times" really means. To today's debt-ridden yuppie spenders, "hard times" means shuffling six different credit card accounts to cover the payments on an overpriced house, two new SUVs in the driveway and a vacation to Paris, none of which the yuppie couple can afford."

guru-seo, Jan 19, 2008 IP

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Coming financial collapse of the U.S. gov: FED reveals what's in store for Americans

guerilla Notable Member

soniqhost.com Notable Member

guru-seo Peon

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