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Thursday, July 12, 2012

Federal Reserve warns of NEW (and bigger) Economic crisis (read CATASTROPHE!)

Blogman's Notes: Perhaps someone should ask Ben 'Helicopter' Bernanke when the last Economic Crisis ended that we have to worry about a NEW one? Mr. BB let's wait for this crisis to end before we raise alarm bells for the next one. This warning is like the Captain of The TITANIC warning passengers that it might hit another iceberg even as the ship was sinking the crew was scrambling for the lifeboats while telling the passengers that the hull had been repaired and all was well! We all know how that story ended! Sounds like QE 3 will be setting sail soon but will it reach port on sink midway! All betting folks should bet on the TITANIC outcome or the HINDENBURG outcome not the LINDBERGH long shot outcome!

A recent meeting of the US Federal Reserve revealed that members of America’s central bank are not very optimistic about the future of the country’s economy. Even though the Fed is at odds regarding what to do in terms of helping economic growth — and it still remains unclear whether or not a third round of quantitative easing (QE3) is to come — the official forecast from the bank suggests that the US may be sliding into a crisis. Details from the Fed’s last meeting have been released to the public, and the minutes from that gathering reveal that the economists that oversee much of the inner-workings of the country’s fiscal policy remain concerned with the state of America. Among the items discussed in the meeting ishow a lack of initiative on the part of the US Congress could bring further strain on America’s economy, specifically that a failure to avert tax hikes and planned massive spending cuts later this year could be catastrophic. The Fed has also downgraded its economic forecast, citing that a stagnant job market continues to cause problems. The minutes also reveal that the Fed’s board believes that the unemployment epidemic that has plagued the Obama administration since the current president took office in 2009 shows no sign of shaping up — members forecast that statistics for the next few months will mirror the current unemployment level of 8.2 percent.
Shuttered and padlocked businesses line Main Street in Stockton, California June 27, 2012 (Reuters/Kevin Bartram)Today: 19:232 comments

California cities 'may cease to exist'?

In a phenomenon that seems to be worsening with each and every hour, a widespread fiscal crisis in California is quickly propelling the state into bankruptcy, city by city.

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