Can US Default on it's Debt. ??

No way ..are you kidding..?? In Paper currency it can never happen unless you do not control your paper currency. e.g. in case of PIIGS Portugal, Italy, Ireland, Greece and Spain currency is printed by ECB (European Central Bank) and hence technically they can default. No other country that control it's own currency can default in today's world.

However in long term if Hyperinflation becomes reality then probably countries have to default as they won't be able to do both i.e.
# Money supply shrinking via increasing interest rate.
#Increased payment on Interest.

but that's still 5 - 10 years away till then let's enjoy ..

Joseph Stiglitz - Problems with GDP as an Economic Barometer

While we all measure "success of country in GDP growth",Truth about GDP number is very nicely explained here by Nobel Prize Winning Economist Joseph Stiglitz. After hearing this and  similar comment by Peter Schiff in which he said if you have Hurricane Katrina, GDP Grows :)  To me now "GDP" sounds like "economic chaos" done by country in year. It's nothing to do with productivity of nation / real growth of people's quality of life. Basically it's nothing to be proud about for any nation.

Is Ben Bernanke's position at Risk?

After a very long time Ben Bernanke did both true and right statement. In his previous press conference he made it clear that "Fed has done enough. Fed will complete our existing Program (QEII) and there won't be any stimulus further." His clear remarks have made no dent in commodities in fact they have gone up! So Ben's troubles are increasing. Since he has agreed that he has no tools anymore. Probably he has put himself at risk of losing his Position. Another Possibility is Euro Zone mess can become scapegoat for all problems and his position may persist but in my opinion his position is at  risk for Sure !!

Question to RBI (Indian Central bank)

Since there is a right of Information act in India I hope I have full right to ask this question.


Currently India is fighting between 2 tough choices i.e. inflation vs growth. And everyone knows RBI  has given more weight to growth than inflation.


Now my question is, who gave this right to RBI i.e. to decide "for growth of some sectors of economy, everyone must pay more for food, cloths and in fact everything" ?? I think it's a huge decision taken on behalf of everyone without asking anyone............. 


India's Inflation and RBI's response is very symbolic as in Post Stimulus world, India is first country to have 16% Inflation in Feb - Mar 2010. And so far has failed 9 times to curb that inflation. ....


Sadly enough key decision makes are ready to ignore reality that "Nearly 80 percent of India lives less than dollar (50 Rs) a day and persistent inflation mean probably less food to eat than required". They still think that  saving "Realty" sector is more important than this Reality...