By Greg Hunter’s USAWatchdog.com
Deal or no deal. The battle to reopen the government and raise the debt ceiling is progressing. At least the two sides are talking, but I still feel like we are being forced to watch a sadistic game show where everybody ends up losing. In the end, I think everybody will lose because it is not the so-called debt ceiling that is the real problem, it is the enormous debt. $17 trillion and growing, and that doesn’t include the more than $5 trillion in additional commitments we take on every year. Do I think the government is dysfunctional? NO. It is working exactly the way it should. The reason why we have separate bodies of government is that it provides checks and balances. Are both parties to blame for the mess we are in with this enormous debt problem? Yes. Let’s not forget–the debt is the real problem. The U.S. is coming up short $1 trillion a year! That simply cannot go on forever.
Somebody that is going to have to face that problem is Janet Yellen, who was just nominated to take over at the Federal Reserve when Ben Bernanke leaves office. The media has sung her praises, but Ms. Yellen, I do not think, is going to be some sort of savior. In fact, it will be just the opposite. A few years ago, when asked about the gigantic 2008 financial meltdown, Yellen said, “I didn’t see any of that coming until it happened.” Yellen didn’t see anything wrong with the system before it almost totally collapsed? I don’t get it. Peter Schiff will be on Monday. He predicted months ago that she would get the nod when Larry Summers was the odds on favorite to get the job. Schiff will talk about what Janet Yellen faces.
Here’s one big problem. China just arranged a currency swap with the European Union. That means the two biggest markets outside of America will not be settling trade with U.S. dollars. If you think this will not affect you, think again. This means all those dollars will not be needed anymore, and those dollars will be sent back home. When you have a lot of something, the price goes down. I am talking about inflation boomeranging back home to the U.S. One other thing, China imported more than 846 tons of gold in the first 8 months of this year. You must ask yourself, why are they doing that? You think China might want to have a world reserve currency and back it with gold? Many say yes.
One final note, even though you haven’t heard much about it, the Syrian civil war is raging on. There have been 100,000 killed since the conflict started 2 years ago. And in Libya, the Prime Minister was kidnapped for a short while by Al-Qaeda linked militants and later rescued. Nothing is settled in that part of the world; and, in fact, it is getting worse.
Join Greg Hunter as he gives his analysis on these stories and more in the Weekly News Wrap-Up.