Posted on 02/26/2010 11:04:23 AM PST by prairiebreeze
With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece, and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt.
Recent events in Europe, where Greece and other nations with large, unsustainable deficits like the United States are having increasing trouble selling their debt to investors, show that the U.S. is vulnerable to a sudden reversal of fortunes that would force taxpayers to pay higher interest rates on the debt, Mr. Bernanke said.
"It's not something that is 10 years away. It affects the markets currently," he told the House Financial Services Committee. "It is possible that bond markets will become worried about the sustainability [of yearly deficits over $1 trillion], and we may find ourselves facing higher interest rates even today."
~~snip~~
"We're not going to monetize the debt," Mr. Bernanke declared flatly, stressing that Congress needs to start making plans to bring down the deficit to avoid such a dangerous dilemma for the Fed.
(Excerpt) Read more at washingtontimes.com ...
My working theory is that a cultural shift is taking place that will replace this paradigm. I think folks are starting to see the parallel between massive gov't debt and the debt in their own lives.
If we don’t buy much stuff, business will slow down. If business slows down, yeah, the government will raise taxes. Business will slow down more. For lack of revenues, the government will shrink.
>>Trading paper money for real land. You..you..must be some sort of ...of crank! /sac<<
Real land and junk silver. ;)
They're also rioting in the streets. Funny, if this were the Bush administration, the MSM would be reporting it 24/7. Go figure.
Yes, it seems the storm is pushing back on the spending.
Same here. From now on, it's all about surviving it all. Million of other Americans are thinking (and planning) the same way.
The self serving politicians are on their own. It's time we started serving ourselves. (Screw them.)
This is extremely important. Learn a skill people need that uses things from nature. (I always advocate soap, hide tanning, or cheese). If everything eventually runs out, you'll be able to go to any town and teach for your keep (and maybe even your life).
No toilet paper? People will use rags. Those rags will need to be washed. Clothes, bodies, utensils....all will need soap.
This is extremely important. Learn a skill people need that uses things from nature. (I always advocate soap, hide tanning, or cheese). If everything eventually runs out, you'll be able to go to any town and teach for your keep (and maybe even your life).
No toilet paper? People will use rags. Those rags will need to be washed. Clothes, bodies, utensils....all will need soap.
Unfortunately, liberals don’t understand the meaning of blunt. They think it’s marijuana.
Exactly. It will be called another financial “crisis” and Obama will somberly say that we need to “put our differences aside” and “come together” and pass historically large tax increases to save the country.
So, no more Helicopter Ben? No more dumping money out of helicopters? No more secret weapon, the printing press to stave off deflation?
Heh heh heh!
So, no more Helicopter Ben? No more dumping money out of helicopters? No more secret weapon, the printing press to stave off deflation?
Heh heh heh!
Oh but you already have Mr. Bernanke.
Oh but you already have Mr. Bernanke.
Exactly! He monetized so much, the Fed holds less than on October 10, 2007.
The Fed held $779.6 billion in Treasuries, looks like we're down to $776.6 billion since then.
...warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece, and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt.The debt crisis was manufactured by Zero and his co-conspirators in Congress.
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