Source: RT/Youtube
The countdown to armadebtdon carries on and we are just 3 days away from the debt ceiling deadline. If a discussion is not reached will the US lose its AAA rating? The problem is we are not taking in enough revenue to continue spending like we are. Max Keiser of Keiser Report gives us his insight on what that means to the US.
Source: blogs.forbes.com
Chairman Ben Bernanke faced-off with Fed-hating Representative Ron Paul during his monetary policy report to Congress on Wednesday. The head of the Fed was forced to respond to accusations of enriching already rich corporations while failing to help Main Street, while he was pushed on his views on gold. When asked whether gold is money, Bernanke flatly responded “No.” (See video below).
While most of Bernanke’s reports to Congress serve politicians to pursue their own agendas by gearing the Chairman towards their issues, with Republican Rep. Bacchus talking of the unsustainability of Medicaid and Rep. Frank (D, Mass.) asking about the need to raise the debt limit without cutting spending, it was a stand-off between Bernanke and Ron Paul that took all the attention. (Read Apocalyptic Bernanke: Raise The Debt Ceiling Or Else).
Rep. Ron Paul, Republican for Texas, asked Bernanke why a capital injection of more than $5 trillion “hasn’t done much” to help the consumer, who makes up about two-thirds of GDP in the U.S., and prop up the economy, while it helped boost corporate profits. “You could’ve given $17,000 to each citizen,” Ron Paul claimed.
Ron Paul vs Bernanke: Is Gold Money? – July 13, 2011
Source: reuters.com
The dollar tumbled on Wednesday, on track for its worst showing against a basket of currencies in nearly a month, after Federal Reserve chief Ben Bernanke said the Fed could resort to more monetary stimulus if the U.S. economy weakens further.
The dollar also fell to a record low against the Swiss franc, in the wake of Bernanke’s testimony. The dollar hit a trough of 0.81820 franc, while the euro traded near $1.42, off the prior session’s four-month low beneath $1.39 and on pace for its best day since April.
Surprisingly strong Chinese growth data also helped overshadow worries about the euro zone debt crisis after Fitch Ratings said an ambitious Italian deficit reduction plan would help stabilize the country’s credit rating.
[insetleft title="Post Script"]Om Federal Reserve talar om penningpolitisk stimulans handlar det om att trycka ännu mer pengar – inflationen lär inte vänta på sig.[/insetleft]
