Wednesday, July 6, 2011

Federal Reserve Out Of Reserves

Washington, DC - The Federal Reserve today announced they have no more money in reserve. In fact, they allowed a tour of the vault to show that it was completely empty. This marks the first time that reporters have been allowed into the Reserve Vault at any time since it became operational in the 1930s.

The announcement shows a continuing failure of the Congress to put aside their petty squabbling and move forward with a debt ceiling agreement. America is not only unable to pay to stay in operation, they are unable to borrow any more funds. President Obama, who had spoken about circumventing Congress to tell the Treasury to continue borrowing money regardless of the debt ceiling debate, decided not to take this route.

As of midnight, the Federal government was on a shutdown due to lack of funds. Government projects have been put on hold, the military is working at a reduced capacity until the funding can become available. FBI and CIA operations have been scaled back as well. Terrorist organizations have increased their chatter and planning knowing that America is even weaker than they were before.

The debt ceiling debate came primarily from the Republican party, which demanded any increase in the debt ceiling be met with spending cuts. By refusing to raise taxes, Republicans painted a box around themselves which they wouldn’t leave. Now with the government shut down and people starting to take notice, Republicans are being blamed for the situation. If another terrorist attack occurs, the United States does not have the financial leeway to allow for proper handling of the situation or retaliation against the groups involved.

Federal employees will not be paid until the Reserves can be bolstered, leaving many families in limbo during one of the worst recessions in US history. This significantly hinders the recovery efforts and could have significant repercussions for the economy in Washington DC, which is heavily dependent on the salaries of government employees.

Until the Fed can build more revenues, there will be no government activities. The onus is on Congress to approve a new debt ceiling or for President Obama to grow some balls and go around Congress for the good of the nation. In either case, now we have entered a period when the safety of the United States is in the greatest peril since the post-Revolution period.

Annabel Lee is a freelance journalist for the Baltimore Fake Times Journal. She relies on her readers clicking her ads for her revenue, which means she’s in serious trouble if people stop reading her silliness.

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