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 ...
Bernanke and Geithner have never run their own household, apparently. And they are the smarts to lead this country.
Figures. What an ass.
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.
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.
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.
The FED is what has no practical value and should be done away with.
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.
“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.
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!”
Bernake, another in a long list of puppets that need be purged.
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.
No, assclown, it's a device designed to cut up Fedzilla's credit cards.
“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.
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.
Yes, that's what a BUDGET is for. Tell the senate to do one.
THEN we can talk debt ceiling.
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?
““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.
“no other countries in the world have” 16.3 trillion dollars of debt.
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.
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