The rumble in the monetary jungle, with Karl Denninger and Mike Norman!
Welcome to Capital Account. The Federal Open Market Committee announced nothing new in a statement following its two-day meeting: The Federal Reserve will maintain QE3, and it will keep interest rates at record lows until at least mid-2015. We ask guests Mike Norman and Karl Denninger if the Fed is trying to inflate its way out of debt without addressing the US’ fiscal imbalances.
Plus, Tuesday’s third party presidential debate featured candidates from the Green, Justice, Constitution and Libertarian parties, highlighting issues that haven’t been touched in the Romney-Obama debates: Money in politics, cutting defense spending and the government's role in the student loan debt crisis. On the US military budget, Gary Johnson said that “the biggest threat to our national security is that we're bankrupt.”
Guests Mike Norman, Chief Economist of John Thomas Financial, and Karl Denninger, author and trader, debate whether a significant reduction in federal spending is necessary to solve America’s economic troubles. Can the US just print whatever money it needs to meet its financial obligations, or will it eventually have to pay the price?
And in today’s ‘Loose Change,’ Lauren and Demetri explore the brewing battle between Goldman Sachs and Goldman ‘sucks.’ Greg Smith, the op-ed-writing whistleblowing defector from the financial firm, released his book this week: ‘Why I Left Goldman Sachs.’ As Smith appeared on Bloomberg television to promote his book, Goldman Sachs chief Lloyd Blankfein went on CNBC to speak about the controversy. Lauren and Demetri discuss the lowlights of both interviews.