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Bernanke: Get rid of the debt ceiling, it has no practical value
Washington Examiner ^ | January 14, 2013 | January 14, 2013

Posted on 01/15/2013 5:23:41 AM PST by Sir Napsalot

Federal Reserve Chairman Ben Bernanke criticized the debt ceiling as an unusual device that can be used to prevent the United States from paying it’s bills, as he suggested that the country would be better off if the debt limit did not exist.

“I think it would be a good thing if we didn’t have [the debt ceiling],” Bernanke told students at the University of Michigan today. “I don’t think that’s going to happen. I think it’s going to be around.” Those remarks put Bernanke in agreement with Treasury Secretary Tim Geithner, who has said that Congress should eliminate the debt ceiling.

The conversation began when Bernanke was asked if the debt ceiling had any “practical value” as a matter of fiscal policy. “No, it doesn’t really have — it’s got symbolic value, I guess, but . . . no other countries in the world have this particular institution,” he said.

“If the Congress is approving spending and it’s approving taxing, and those two things are not equal,” Bernanke continued, “the way to addres it is by having a sensible plan for spending and a sensible plan for revenue and make decisions about how big the government should be or how small it should be.”

(Excerpt) Read more at washingtonexaminer.com ...


TOPICS: Government; News/Current Events
KEYWORDS: benbernanke; bernanke; congress; debt; debtceiling; stupidparty; thefed
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Remember folks, 'the adults' are in charge now. "Sensible" no longer means what you and I thought it means.

Bernanke and Geithner have never run their own household, apparently. And they are the smarts to lead this country.

1 posted on 01/15/2013 5:23:48 AM PST by Sir Napsalot
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Figures. What an ass.


2 posted on 01/15/2013 5:25:19 AM PST by Gene Eric (Demoralization is a weapon of the enemy. Don't get it, don't spread it!)
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To: Sir Napsalot

Get rid of Bernanke and don’t replace Geithner. Bernanke is a detriment to this nation’s economy and our lives, but then so is the moronic, communist phony who has taken up residence in what is now the White Hut.


3 posted on 01/15/2013 5:27:20 AM PST by IbJensen (Liberals are like Slinkies, good for nothing, but you smile as you push them down the stairs.)
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To: Sir Napsalot

Interesting. Members of the same crowd who believes we should limit magazine capacities and number of gun purchases per month. Spending limits, regardless of revenue, however, are arbitrary.


4 posted on 01/15/2013 5:33:24 AM PST by edpc (Wilby 2012)
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To: Sir Napsalot

Bernacke and Geithner will be remembered as the most disastrous individuals ever to be appointed to high office. Whwn confronted with $11 trillion dollars of debt, continued deficit spending of $3 billion dollars a day, huge unfunded liabilities, and a declining less productive economy, they instituted policies and financial gimmicks that combined with Obama’a malfeasance assured the decline of America.


5 posted on 01/15/2013 5:35:35 AM PST by allendale
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To: Sir Napsalot
See, that's EXACTLY what I've been trying to tell my bank about my VISA / MC accounts. Get rid of my so called "credit limit", as that's been cramping my style...
6 posted on 01/15/2013 5:35:41 AM PST by Rebel_Ace (Tags?!? Tags?!? We don' neeeed no stinkin' Tags!)
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To: Sir Napsalot

The FED is what has no practical value and should be done away with.


7 posted on 01/15/2013 5:35:57 AM PST by JohnKinAK
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To: Sir Napsalot

Of course it has no practical value if you continue to raise it every time. Treasury issue the bonds and the Fed pays for them with freshly printed dollars.


8 posted on 01/15/2013 5:36:17 AM PST by depressed in 06 (America conceived in liberty, dies in slavery.)
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To: Sir Napsalot

“If the Congress is approving spending ...”

There’s your mistake Mr. Bernanke. Congress has not seen a budget bill since 2009 thanks to the despicable dems in the senate.


9 posted on 01/15/2013 5:38:30 AM PST by Ludicrous
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To: Sir Napsalot

Ben, I’m sure you told the cops the handcuffs weren’t necessary and have no practical value.

Likely the officer told you, “We have this policy for a reason, and the cuffs STAY!”


10 posted on 01/15/2013 5:39:53 AM PST by G Larry (Which of Obama's policies do you think I'd support if he were white?)
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To: Gene Eric

Bernake, another in a long list of puppets that need be purged.


11 posted on 01/15/2013 5:42:21 AM PST by Mouton (108th MI Group.....68-71)
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To: Sir Napsalot

Bernanke is right for once. This whole “debt ceiling” thing is a charade, giving politicians air time and the chance to engage in live theatre.


12 posted on 01/15/2013 5:42:57 AM PST by elkfersupper ( Member of the Original Defiant Class)
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To: Sir Napsalot
criticized the debt ceiling as an unusual device that can be used to prevent the United States from paying it’s bills,

No, assclown, it's a device designed to cut up Fedzilla's credit cards.

13 posted on 01/15/2013 5:48:16 AM PST by tx_eggman (Liberalism is only possible in that moment when a man chooses Barabas over Christ.)
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To: Sir Napsalot
He is 100% correct. If Congress simply rubber-stamps every ceiling as it is reached, then it has no meaning, no value, and no impact.

“If the Congress is approving spending and it’s approving taxing, and those two things are not equal,” Bernanke continued, “the way to addres it is by having a sensible plan for spending and a sensible plan for revenue and make decisions about how big the government should be or how small it should be.”

Also correct, however we do not have politicians who are interested in such decisions... and it may very well be that we have a large percentage of politicians who WANT to "reset" this nation, by tanking its economy. They are protected by a media that are not interested in the "size of government" question, because they want to be a part of the control mechanism of this nation, and they know that those who want HUGE government are those who will use them to maintain that control. Their vested interested are massive, and yet their main supporters are taught that those greedy limited-gvernment folk are the actual problem. (Ironic, no?)

What we have is a political class that is in the same exact boat as China's authoritarian rulers. As long as enough people can be pacified with money, and as long as those who are opposed are kept separate, unsure, castigated, and unarmed, then those in power can remain there indefinitely, and seek ways to gain more power on the world stage.

14 posted on 01/15/2013 5:48:56 AM PST by Teacher317 ('Tis time to fear when tyrants seem to kiss.)
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To: Sir Napsalot
So, the Framers gave the power of the purse to Congress as a check on Executive power, but we should instead listen to the ranting of a non-elected policy wonk who has never had to meet a business payroll?

Benanke is further proof that assuming academics have ‘special knowledge’ that is practically applicable is nonsense. We would be way, way better off if we had a moratorium on government involvement by those from the Ivies. We are most definitely not diverse enough when it comes to educational background in government.

15 posted on 01/15/2013 5:52:07 AM PST by pieceofthepuzzle
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To: Sir Napsalot
“If the Congress is approving spending and it’s approving taxing, and those two things are not equal,” Bernanke continued, “the way to addres it is by having a sensible plan for spending and a sensible plan for revenue and make decisions about how big the government should be or how small it should be.”

Yes, that's what a BUDGET is for. Tell the senate to do one.

THEN we can talk debt ceiling.

16 posted on 01/15/2013 5:58:22 AM PST by Principled
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To: Sir Napsalot
...the way to address it is by having a sensible plan for spending and a sensible plan for revenue...

Gosh...what a brilliant idea! Why...it might even be a good idea to have a budget to follow, as required by the Constitution. But then, this President could care less about the Constitution and Congress under Harry Reid hasn't had a budget in the last three years. Laws...schmals...who needs 'em. Obozo's plan is to run the country by Executive Order anyway, so who needs a House and Senate? Dictatorships are much easier, right?

17 posted on 01/15/2013 5:59:10 AM PST by econjack (Some people are as dumb as soup.)
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To: Sir Napsalot

““No, it doesn’t really have — it’s got symbolic value, I guess, but . . . no other countries in the world have this particular institution,” he said.”

What else doesn’t any other country have, Ben?

~The World’s Reserve Currency.

Does Ben think that the rest of the world who has accepted diminishing returns on their massive dollar holdings will continue to hold dollars if we can just pretend there is no end to printing fiat?

Perhaps he does. There IS that little matter of open-ended QE.


18 posted on 01/15/2013 6:00:24 AM PST by OpusatFR
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To: Sir Napsalot

“no other countries in the world have” 16.3 trillion dollars of debt.


19 posted on 01/15/2013 6:00:47 AM PST by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: Sir Napsalot
The idea that Bernanke is non-partisan is nonsense. This is all being orchestrated by the WH. Who cares what Bernanke thinks about what is a political issue.

Congress has a right to control the purse. If there is no practical value because the USG must pay its bills then how far does that extend? We have over $60 trillion in unfunded liabilities in the form of Medicare and SS. This does not include Obamacare and Medicaid. These programs are not engraved in stone. They can and must be changed or they will consume the entire federal budget. How much debt will it take to get Bernanke's attention?

When we raise the debt limit, we are forecasting what additional debt is needed to pay our bills. The limits we set will and should affect program changes.

20 posted on 01/15/2013 6:04:15 AM PST by kabar
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