America in Default
The uncontrolled fires consuming the resident-filled hills of Malibu are a fitting image for the American economy. Stocks are dropping, the dollar is crashing, and American consumers are defaulting on their mortgages, car loans, and credit cards. Banks are scrambling to strengthen their reserves, but they will not likely outrun the sprinting of "failure to pay."
The financial news outlets have reported much on the decline of the U.S. dollar--especially in relation to the ascendancy of the Euro. In all likelihood, the Euro will become the competitor in world reserve currencies, and the already ailing dollar will soon face an impending cliff.
Despite the gathering clouds of recession, the Federal Reserve is assuring the market that it will fulfill the role of Superman to catch Lois Lane moments before she hits the pavement:
The financial news outlets have reported much on the decline of the U.S. dollar--especially in relation to the ascendancy of the Euro. In all likelihood, the Euro will become the competitor in world reserve currencies, and the already ailing dollar will soon face an impending cliff.
Despite the gathering clouds of recession, the Federal Reserve is assuring the market that it will fulfill the role of Superman to catch Lois Lane moments before she hits the pavement:
"The Federal Reserve will continue to monitor developments in financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability..."As I said last week, beware of those who offer solutions to a crisis. Usually, they are the ones who instigated the crisis to begin with. And in this instance, this is especially true. The ruining of the American economy began with the creation of the U.S. central bank, the Federal Reserve.
