USA Faces Grave Debt and Deficit Crisis, Warns President of Kansas City Federal Reserve
Thomas Hoenig, President of the Federal Reserve Bank of Kansas City, has issued a stark warning regarding the ballooning U.S. federal government annual deficit and cumulative national debt. Hoenig told the Pew-Peterson Commission on Budget Reform that massive deficits being projected by the Obama administration would endanger the Fed’s ability to fulfill its mandate of maintaining stable economic growth and price stability.
“Without pre-emptive action, the U.S. risks its next crisis,” stated Hoenig. What this senior Federal Reserve official is saying, on the public record, is that the current U.S. fiscal policies are unsustainable, and unless halted and reversed in short order, will precipitate a hyper-inflationary depression.
Paul Revere has spoken. But who is listening? Certainly not the economic policymakers in Washington DC, who believe only small countries like Greece can face national insolvency. Sooner then they can imagine, they will receive an education which unfortunately will cost their countrymen dear.
