wow...

Ok this story was even buried on Drudge which is very disturbing considering the ChiComs are the #1 buyer of US debt (otherwise known as T-Bills, but that's the fucking PC term, its our DEBT! No need to put sexy wall street jargon on it). This coming on the heels of Obama's "were broke" comment over the weekend that didn't get ANY coverage outside of a 4 hour headline on Saturday night/early Sunday morning on Drudge. If that was disturbing enough check out this paragraph from the story (link in title)

Mr Fisher, the Fed's leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.

Now for those of you who don't know what the hell he's talking about in relation to Argentina read up on it here and the international socialist society has a surprisingly good article about it And theres a PDF file that a UCLA professor put together back early in 2002 that shows some disturbing similarities to what is going on in the US economy now. Sorry about all the hyperlinks folks but I don't want this post to be a mile long. Searching for 10 minutes online I think I am able to best explain the crisis through quoting this article from the CATO institute ( full article here)

The Argentine economy suffered a deep crisis during 2001 and 2002. Poverty stretched to one in every three homesteads in the suburbs of Buenos Aires, and the traumatic departure from convertibility, together with financial crisis and default (public debt default), undermined investor confidence, both local and foreign.

Causes of the Crisis

We believe the crisis owed its existence to four main causes: (1) inappropriate fiscal policy, (2) wage and price rigidities inconsistent with a fixed exchange regime, (3) a considerable, adverse external shock, and (4) political turmoil.

Two-Tiered Fiscal Inconsistency

On one side, public expenditure growth measured in U.S. dollars outpaced GDP growth, corrected by tradable-goods prices. On the other, the federal and provincial primary fiscal surplus did not rise at an equal pace with the hike in the financial burden linked to growing debt and the gradual phasing out of preferential-rate bonds (Brady bonds and others issued to cancel government liabilities with pensioners and state contractors) replaced in turn by market-rate notes.

The impact and stress on convertibility caused by real shocks has led many analysts to challenge the fiscal nature of the crisis. (1) In our opinion, that doubt stems from an incomplete observation of Argentine data and to a misinterpretation of causality between public expenditure and real exchange rates.

And finally in a age when millions have become billions and billions have become trillions here's a number for you all to chew on, $99 trillion. Yes $99 FUCKING TRILLION DOLLARS THAT ME, MY GENERATION, AND MY KIDS AND THEIR GENERATION ARE ON THE FUCKING HOOK FOR. Thanks Reagan, Bush II and Obama, your insane fiscal policies have fucked me for my entire life and probably into my kids and their kids lives. Government is not the soultion EVER. You know how there was an old saying that Confederate money wasn't worth the paper it's printed on? That's going to be the US dollar in 5 years, tops, if we continue this orgy of spending.



"You've got some mild deflation here," he said.

The Oxford-educated Mr Fisher, an outspoken free-marketer and believer in the Schumpeterian process of "creative destruction", has been running a fervent campaign to alert Americans to the "very big hole" in unfunded pension and health-care liabilities built up by a careless political class over the years.

"We at the Dallas Fed believe the total is over $99 trillion," he said in February.

"This situation is of your own creation. When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them," he said.

His warning comes amid growing fears that America could lose its AAA sovereign rating.