The United States, the country that is at the center of the world’s economic and financial system and one that controls the world’s supply of money, is on a fiscal path towards insolvency and policymakers are at a “tipping point,” a voting member of the Federal Open Market Committee [FOMC], the Federal Reserve’s principal monetary policymaking group, said on Tuesday.[via Reuters] “If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when,” Dallas Federal Reserve Bank President and CEO Richard Fisher said in a Q&A session after delivering a speech at the University of Frankfurt.
“The short-term negotiations are very important, I look at this as a tipping point.”
But he added he was confident in the Americans’ ability to take the right decisions and said the country would avoid insolvency.
“I think we are at the beginning of the process and it’s going to be very painful,” he added.