Editor, Gazette-Journal:
America is beyond a political solution to the debt problem. With a national debt exceeding $33 trillion, coupled with $17 trillion in household debt, with $15 trillion in auto loans, $1.6 trillion in student loans and another $1 trillion in credit card debt, the total debt portends a coming disaster, when considering the precarious condition of the banking institutions.
U.S. banks are facing approximately $600 billion in unrealized losses, roughly 25 percent of the banking capital, near the highest in U.S. history. Currently, 186 U.S. banks are at risk of failure due to rising interest rates and a high proportion of uninsured deposits. These factors portend further bank failures on top of the already record failure of two primary U.S. banks.
The Federal Reserve has painted itself into a corner with nothing but poor choices to select from. Lower interest rates will only bring on higher inflation that will likely quickly destroy the remaining value of the dollar,...