The US Government - Out of ammo - by Fox Day
Last week, Barack Obama declared that the U.S. was out of money. Today, General Motors is expected to file for bankruptcy, which is an ominous sign in a land where the financial health of the automotive giant has long been considered a proxy for the financial health of the nation. And California looks increasingly likely to go bankrupt in the near future. And yet, in a nation without money, Bloomberg has reported that the Federal Reserve has loaned out 7.8 trillion dollars without telling anyone where it has gone. The American people don't know. Congress doesn't know. No one seems to know; the video of the exchange between Rep. Alan Grayson of the House Subcommittee on Oversight and Investigations and the inspector general of the Federal Reserve Board of Governors is more darkly comedic than anything the Daily Show has shown in years.
There are an increasing number of signs indicating that the post-Bretton Woods reserve currency system is rapidly approaching terminal status. As Mike Shedlock has chronicled, Chairman Bernanke has exhausted the 13 paper bullets in the Fed's gun, so the ultimate fate of the Federal Reserve Note and the U.S. economy would appear to be in the invisible hands of the market now.
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