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Storms on the Horizon - Speech Today by the Federal Reserves Richard W. Fisher

http://www.dallasfed.org/news/speeches/fisher/2008/fs080528.cfm

The Transcript of this speech today is a definite read. Fisher is a member of the Federal Reserves Commitee that is responsible for setting monetary policy / interest rates. He is one of the only that has consistantly disagreed with Bernake over the last year or 2.

This was better then the former David Walker (former Comptroller General) speeches.

This was also an important speech that clearly identified so many of the issues we face in the immediate future, that the MSM financial press does not cover (and what many of us talk about).

I actually think Fisher is a Ron Paul supporter (but no way to prove that).

Here are some snippets - but best to read this well written speech -

Suppose we decided to tackle the issue solely on the spending side. It turns out that total discretionary spending in the federal budget, if maintained at its current share of GDP in perpetuity, is 3 percent larger than the entitlement shortfall. So all we would have to do to fully fund our nation’s entitlement programs would be to cut discretionary spending by 97 percent. But hold on. That discretionary spending includes defense and national security, education, the environment and many other areas, not just those controversial earmarks that make the evening news. All of them would have to be cut—almost eliminated, really—to tackle this problem through discretionary spending.

I hope that gives you some idea of just how large the problem is. And just to drive an important point home, these spending cuts or tax increases would need to be made immediately and maintained in perpetuity to solve the entitlement deficit problem. Discretionary spending would have to be reduced by 97 percent not only for our generation, but for our children and their children and every generation of children to come. And similarly on the taxation side, income tax revenue would have to rise 68 percent and remain that high forever. Remember, though, I said tax revenue, not tax rates. Who knows how much individual and corporate tax rates would have to change to increase revenue by 68 percent?
.... ...
It is only natural to cast about for a solution—any solution—to avoid the fiscal pain we know is necessary because we succumbed to complacency and put off dealing with this looming fiscal disaster. Throughout history, many nations, when confronted by sizable debts they were unable or unwilling to repay, have seized upon an apparently painless solution to this dilemma: monetization. Just have the monetary authority run cash off the printing presses until the debt is repaid, the story goes, then promise to be responsible from that point on and hope your sins will be forgiven by God and Milton Friedman and everyone else.

We know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far worse than the fiscal pain those countries hoped to avoid.

http://www.dallasfed.org/news/speeches/fisher/2008/fs080528.cfm

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This guy is part of the [FED]?

This guys sounds like "Scott McClellan" , Dis-in the fed, whoa....

What you believe too be true, is true too you... :-)

What you believe to be true, is true to you... "until you change your mind"

Jim Rogers say

"......the failure of the Federal Reserve.....
http://waronyou.com/2008/05/jim-rogers-more-pain-for-the-gre...

It seems to me he forgot to

mention that when Clinton got rid of the deficits he took the money from the Social Security Trust Fund. It made him look pretty good. Remember he had Goldman Sachs' Robert Rubin finagling things for him and the American people bought the lies and thought everything was great. He's trying to make the Federal Reserve relevant. The electors are at fault and we can change it in November, when indeed, these same people marginalized Ron Paul and they ALSO COUNT THE VOTE. The IRS is their law enforcment. I hope someone else can find the background about the Clinton/Social Security fraud.