Federal Reserve Warns that U.S. is Going Broke Paying for Three Wars - Libya Bombing $ 1 Billion

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From [HERE] A senior Federal Reserve official warned today that America is going broke as fears grow the Libyan bombardment could cost more than $1 billion.With the U.S. now fighting three wars, the massive new military drain on the budget could not have come at a worse time as the nation is trying to claw itself out of recession.

The first day of Operation Odyssey Dawn had a price tag of well over $100million for the U.S. in missiles alone, according to estimates.

The U.S. military has no official cost figures yet for the operation, which has been going on less than a week. By comparison, the much more extensive Afghan war costs more than $9billion a month.

Although he did not refer to the Libyan offensive, Dallas Federal Reserve Bank President Richard Fisher said the American economy is at a crucial ‘tipping point.’ He added: ‘If we continue down on the path on which the fiscal authorities put us, we will become insolvent – the question is when.

‘The short-term negotiations are very important. I look at this as a tipping point.'

Mr Fisher was speaking after giving a speech at the University of Frankfurt in Germany. He insisted he was confident  the country's leadership would make the right decisions to avert a financial catastrophe.

‘I think we are at the beginning of the process and it’s going to be painful,’ he said after claiming the US recovery is starting to gain momentum.

Mr Fisher, seen by economists as one of the most hawkish policymakers within the Fed, told CNBC that he believes the central bank has done enough to pour liquidity into the markets.

He said: ‘Our job is done. Now the pressure and the job is in the hands of our elected representatives who have the only power to tax and spend.’