Although Monday, May 16th is the day the financial world was supposed to end as the federal government’s spending hit the debt ceiling, Treasury Secretary Timothy Geithner (left) announced that he was able to put off that day of reckoning until August 2nd. In a letter to Congress, Geithner said that by borrowing from a pension fund belonging to federal workers and from an emergency fund set up to “help deal with foreign financial crises” coupled with slightly higher tax revenues than expected, he is able to stave off the inevitable until early August. But he warned that failure to raise the debt ceiling by that date “would have a catastrophic economic impact.”

moneyEconomists Richard M. Ebeling and Matthew J. Slaughter testified before the House Monetary Policy Subcommittee May 11 and agreed that spending must be cut to avert a financial catastrophe, but disagreed about the risks of failing to raise the national debt limit.

Buried in the latest report from the Bureau of Labor Statistics (BLS) on the Consumer Price Index was some disconcerting news. On the surface, there appeared to be little to be concerned about, with the index “for all items, less food and energy” rising just 0.2 percent in April. On an annual basis, the BLS “all items” index increased just 3.2 percent over the past 12 months.

This was not a good week for the Federal Reserve. As if Rep. Ron Paul’s (R-Texas) congressional subcommittee hearing on the relationship of the Fed to the national debt weren’t bad enough news for the central bank, media mogul and former presidential candidate Steve Forbes has just joined the anti-Fed chorus, telling Human Events that the Fed’s inflationary policies have become so destructive that a return to the gold standard is likely “within the next five years.”

Print COver StoryThe Idaho Statesman in a June 6, 2010 story extolled the efforts of Idaho’s Commerce Secretary Don Dietrich and Idaho Governor C.L. “Butch” Otter to lure Chinese investors to their state: “‘The Chinese are looking for a beachhead in the United States,’ said Idaho Commerce Secretary Don Dietrich. Idaho is ready to give them one,” the Statesman reported.

Affiliates and Friends

Social Media