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Re: Oh Dear!
and...Originally posted by Mega View Post
hey, thx for the tip, richie... the $99 trillion in liabilities were our choice for 20+ yrs between tax & spend democrats or borrow & spend republicans.China warns Federal Reserve over 'printing money'
Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."
"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.
[snip]
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.Last edited by metalman; May 25, 2009, 11:26 AM. -
Re: Oh Dear!
adding corporate and private pensions, amerman calculates that the baby boom generation is planning to collect on $155trillion. this works out to a present value per household [leaving out households below the poverty line and the older half of the baby boomers themselves] of about $1million. how they gonna make that work?
a couple of years ago bill gross wrote a column saying that he u.s., with its large unfunded pension and health care liabilities, was g.m. writ large. only gm can't print money.
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Re: Oh Dear!
If inflation expectation continue to worsen then they will act. but Fisher is just one vote at the FED. So good Luck with that. here is a Speech where he talks of the 99 trillion. The video is a year old.
Link:
http://fora.tv/2008/05/28/Richard_Fi...netary_Policy#Comment
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