Posted on 10/06/2010 5:00:25 PM PDT by citizenredstater9271
Federal Reserve Chairman Ben Bernanke gave a speech in Rhode Island on Monday. Bernanke warned the audience of the Annual Meeting of the Rhode Island Public Expenditure Council that the state of American finances is "unsustainable."
Bernanke is quoted as saying:
"Let me return to the issue of longer-term fiscal sustainability. As I have discussed, projections by the CBO and others show future budget deficits and debts rising indefinitely, and at increasing rates. To be sure, projections are to some degree only hypothetical exercises. Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit."
He went on:
"The budgetary position of the federal government has deteriorated substantially during the past two fiscal years, with the budget deficit averaging 9-1/2 percent of national income during that time. For comparison, the deficit averaged 2 percent of national income for the fiscal years 2005 to 2007, prior to the onset of the recession and financial crisis. The recent deterioration was largely the result of a sharp decline in tax revenues brought about by the recession and the subsequent slow recovery, as well as by increases in federal spending needed to alleviate the recession and stabilize the financial system. As a result of these deficits, the accumulated federal debt measured relative to national income has increased to a level not seen since the aftermath of World War II."
So is the FED QE policy of pumping up its balance sheet with dreck.
This is most certainly an unexpected revelation.
Now what?
Bastard should be imprisoned. JMHO.
You know what he didn’t say?
Federal wealth transfers (entitlement spending) exceed gross federal tax reciepts. This year.
We are bust. As of this year.
Oh, well, it was a nice run. Perhaps Obama will make his horse a Senator, just to point out how silly they are.
But I thought TARP and all the stimuls scams ... I mean schemes... SAVED THE ECONOMY!
California asked for and deserves this!! Oh wait....
After WW2 the US economy was more productive than the rest of the world combined. We roared ahead and paid down that war debt without much trouble.
Now we’re mired in a long term decline and our manufacturing base has been shrinking for 30 years. I don’t see any way out of this one except reduced standards of living. We may end up sliding into 2nd world status in a decade or so.
I’ll pray for another Reagan or George Washington.
“unsustainable.” Everyone should perceive this as a WARNING of the fiscal mess we are in and crisis it could become. If the Republicans win the House, come January they better be ready to do the “hard work” of chopping a whole lot of BS spending, or they will get replaced in 2 years.
Completely agree. Given all the forces at work, the decline is inevitable.
And so do Bammy:
President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.
“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.” Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.” http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJsSb4qtILhg
We've been in decline since the anti-war hippies started voting.
And they won't be replaced by other Republicans. The Drive-By media and Obama administration will rail against "having gone backwards". The stalinists will be granted power once again, and 2012 may wind up being our country's last election - not counting subsequent "elections" where the RATs will consistently win like Saddam Hussein always won his "elections" with 100% of the "votes".
Internally creating. Using what we are. No thought given to that...
Did you forget your /s tag?
I just didn’t deem it necessary.
Who knows for sure, but I wonder that if and when the economy collapses, will it trigger that civil war that many people expect? Again, who knows for sure, but I think there might be a better than even chance that eventually, we may find out.
The good news is, Rush refuses to back away from calling this economic moron a "jackass"
Exactly what is it that the Fed might think there is to sustain?
Just be prepared. The country is toast. Judging from the metal markets something very bad is about to happen. A currency crisis is on our doorstep and al, this moron can say is it’s unsustainable. He has been the classic enabled of the over spending and deficits. If the Fed didn’t buy the worthless paper the govt couldn’t pull these scams.
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