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.

The dire economic straits of the nation have prompted progressives to call for increased taxes, a measure they believe can help offset the deficits at the state and national level. However, when one examines the fiscally troubled states of California and New Jersey, it becomes evident that higher taxes would do little to assuage the problem.

The conflicting news reports on the housing market can give the casual observer a headache: “December Sales of U.S. Existing Homes Jump to 7-Month High,” shouts Bloomberg. “Housing Starts Decline, [but] Building Permits Rise,” exults the National Association of Home Builders (NAHB). Google news drearily reports that "2010 Ends as 2nd Worst Year for Home Builders," while CNNMoney.com warns that “Shadow Inventory Threatens Housing Recovery.”

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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