A prominent economist tells Press TV that the United States so-called fiscal cliff is more like a ‘bottomless pit of debt’ that the country is diving into. He also added that the United States risks collapsing of dollar in 2013. US President Barack Obama has signed into law a bill backed by the Senate that averted the so-called fiscal cliff, the White House says. Obama signed the ‘American Taxpayer Relief Act of 2012’ on Wednesday, the White House said in a statement. On January 1, the House of Representatives voted 257 to 167, approving the bill, which consists of raising taxes on the wealthiest Americans, while exempting others who earn less than $450,000 a year. It will also put off 109 billion dollars in budget cuts for two months.
To further discuss the issue, Press TV’s News Analysis program has conducted an interview with Max Keiser, a journalist and broadcaster in London, Eric Draitser, founder of stopimperialism.com in New York, and Rollin Amore who is an economist and political commentator in Washington.
The Federal Reserve Really Has No Practical Option To End QE
Such an announcement has been part of QE either from MSM or some Fed board member since it began. The implication of stopping QE is so dire to the economy that it is in a practical sense impossible. When gold was being sold by central banks during the 1970s market announcements were made constantly with the bias to depress metals.
There is no way that the implications and consequences of what has been done up to now can be talked or manipulated away. There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system. Just go back to the IMF report on OTC derivatives I posted this morning. If QE ceases, the US bond market collapses and the Fed must debt monetize all required debt, which means if QE stops, it starts up again immediately and in a crisis mode.
I have to admit that if you have been a reader here for any length of time you should know this without asking me. The pressure that people unload on me during any gold reaction is downright mean.
The statement that QE can stop is simply MOPE. QE cannot stop or the world ends as you know it.
Please print this out and post it on your computer because every time the long cycle guy repeats his year old bear gold price prediction or the Fed says anything about stopping QE, you all go wild. It is embarrassing really.
If you do not understand what you are in, why are you in it?
Truman said it all when he said if you can’t stand the heat, get out of the kitchen.
The Federal Reserve has no practical option to end QE without ending the economic world for decades to come. Should that actually occur in some parallel universe, only gold will protect those citizens from the collapse of the by-default reserve currency. I am sure i have written this at least 200 times.
QE ending in 2013? In a late breaking statement, Bill Gross Doesn’t think the Fed Can Stop QE
Figures on government spending and debt.
The government’s fiscal year runs Oct. 1 through Sept. 30.
Total public debt subject to limit Jan. 2 $16,393,975,000,000
Statutory debt limit $16,394,000,000,000
Total public debt outstanding Jan. 2 $16,432,706,000,000