BernankeFederal Reserve Chairman Ben Bernanke told members of the House Financial Services Committee March 2 that even mild cuts in spending could cost the economy 200,000 jobs, and offered a bizarrely vaporous definition of the dollar to Rep. Ron Paul.

On the heels of last week’s report that interest on the $14.13 trillion national debt will quadruple in the next decade, we now learn how much means for the average American household.

The Federal Reserve announced that it would use a new accounting trick to conceal potential losses on its massive investment portfolio, transferring its liabilities to the U.S. Treasury instead. The new methodology would essentially prevent the central bank’s bankruptcy — on paper, at least — right as the debate on its solvency heats up. But the move is already raising eyebrows among analysts, who say it could severely impact the credibility of both the Fed and the U.S. government.

In light of the U.S. dollar’s continual loss of purchasing power and the historical stability of precious metals as a store of value, a new bill set to be considered in the Utah legislature would require the state government to accept taxes and pay its obligations in gold or silver upon demand.   

In a stark illustration of the economic fears still plaguing America, a resolution was introduced in the Virginia legislature on January 12 that would create a subcommittee to officially consider the adoption of an alternative currency in case of a total breakdown of the U.S. dollar and the Federal Reserve System.

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