http://www.nytimes.com/2010/02/17/business/economy/17fed.html

Federal Reserve Officials, Often Tight-Lipped, Openly Voice Deficit Concerns

Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City since 1991 and the longest-serving of the 12 Fed bank presidents, warned on Tuesday that in the worst case, the Fed could face pressure to inflate the nation’s way out of its indebtedness .

“It seems inevitable that a government turns to its central bank to bridge budget shortfalls, with the result being too-rapid money creation and eventually, not immediately, high inflation,” he said at a policy forum here, sponsored by the Peterson-Pew Commission on Budget Reform. “Such outcomes require either a cooperative central bank or an infringement on its independence.”

Last Wednesday, the Dallas Fed president, Richard W. Fisher, said that interest rates on Treasury securities had been kept unnaturally low by the willingness of the Chinese to buy American debt and by shaky European economies, like Greece’s.

“We cannot count forever on the largess or the misfortune of others to mask our own imbalances here at home — for fiscal profligacy in Washington today hinders our ability to address fiscal challenges tomorrow,” Mr. Fisher told the World Affairs Council of Dallas-Fort Worth.

http://www.theonion.com/content/news/u_s_economy_grinds_to_halt_as

U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion

The U.S. economy ceased to function this week after unexpected existential remarks by Federal Reserve chairman Ben Bernanke shocked Americans into realizing that money is, in fact, just a meaningless and intangible social construct .

"Though raising interest rates is unlikely at the moment, the Fed will of course act appropriately if we…if we…" said Bernanke, who then paused for a moment, looked down at his prepared statement, and shook his head in utter disbelief. "You know what? It doesn't matter. None of this—this so-called 'money'—really matters at all ."

"It's just an illusion ," a wide-eyed Bernanke added as he removed bills from his wallet and slowly spread them out before him. "Just look at it: Meaningless pieces of paper with numbers printed on them. Worthless ."

According to witnesses, Finance Committee members sat in thunderstruck silence for several moments until Sen. Orrin Hatch (R-UT) finally shouted out, "Oh my God, he's right. It's all a mirage. All of it—the money, our whole economy—it's all a lie !"

Screams then filled the Senate Chamber as lawmakers and members of the press ran for the exits , leaving in their wake aisles littered with the remains of torn currency .