Posted on 05/12/2011 10:44:27 AM PDT by quesney
Federal Reserve chief Ben Bernanke reinforced his call on Thursday for Congress to raise the cap on U.S. borrowing, saying a failure to do so could lead down the same risky path that the failure of Lehman Brothers did.
During a Senate Banking Committeee hearing, Bernanke reiterated catastrophic consequences should Congress either fail to raise the limit on borrowing or edge too close to that limit.
"The worst outcome would be one in which the financial system would be again destabilized, which we saw in Lehman, which would have extremely dire consequences for the rest of the economy," Bernanke said, referring to the period following the failure of the Wall Street bank Lehman Brothers at the height of the financial crisis in 2008.
Bernanke also said that "using the debt limit as a bargaining chip is quite risky," reiterating a worry he expressed in a February press conference.
(Excerpt) Read more at finance.yahoo.com ...
” Ben Bernanke reinforced his call on Thursday for Congress to raise the cap on U.S. borrowing... “
Very, very, easy to say when your one of “The Exempt Ones” insulated from the eventual Vampire-Care T-bills, back in full credit by the shackles upon the real U.S. producers and savers.
Lehman Brothers collapsed because it failed to RAISE ITS OWN DEBT LIMIT?!?!?
What a schmuck.
LOL!!!
Ping.
Here’s a novel idea: Stop borrowing money, so you don’t edge too close to the present debt ceiling!
That’s exactly what I was thinking.
Earth to Ben Bernanke quit printing paper money!!!!
Yep I go through the South of the Border on the way to Myrtle Beach all the time. It’s a cool little place there.
Dear Lurker
Keep rattling on
I don’t think you have or ever represented the America and I highly doubt you know what love is.
Sayonnara.
“Bernanke..... call...for Congress to raise the cap on U.S. borrowing, saying a failure to do so could lead down the same risky path that the failure of Lehman Brothers did.”
So bailing out a colossal gambling house on Wall St. is just the recipe to save the biggest casino in the world, Washington DC. which has borrowed money from US to pay it’s hollow promises (gambles) which it knows it can’t keep. Fiscal responsibility in Washington is an oxymoron. Most politicians and half of the population don’t get it that they’re living off a golden goose on life support. One good thing about paying taxes, something the other half gets, however reluctantly, is that those whose pocket books are actually supporting the government have a vested interest in seeing their resources better spent.
One word: NO!
Treason.
Bite me, newbie.
If you can’t get to work you won’t get paid. Wallet is empty, credit card is maxed out, you call the bank and ask them to raise the limit so you can buy gas so you can get to work so you can get a paycheck so you can pay the balance. Ditto eating.
We may have to raise the debt limit, otherwise there may be no money to spend to pay federal employees to do whatever work they must to keep things functioning and to pay off bills and cut expenses. Inability to pay employees is what ended the Soviet Union. We’re coming awful close to that point one way or another.
Our government does not “go to work”, and it is still asking to be “paid”— that is to say funded. The comparison to a credit card stops with the obvious fact that raising the ceiling is being demanded in order to allow more borrowing and NOT to allow a functioning of private markets and real economic growth. That is borrowing from dubious sources overseas who are NOT buying our bonds anymore.
So, then the debt ceiling empowers chicken crap congress to allow printing of more money from the private bank which is the Fed. The same private bank that is shorting our dollar everywhere.
This problem can be solved— the so called stimulus is largely (60%) unspent and is sitting in various banks in the states, awaiting use as a political slush fund. Take back this money and have the US MINT (our printer) print greenbacks, just like Kennedy and Lincoln did. In other words take our money back from the Fed which does not have the US interest in its goals at all.
This STOPS the borrowing. Then the money we do have in the Treasury may be directed to pay the interest we already have.
Cloward Piven plans this economic failure by forcing our government into real true default, brought on by continuous borrowing to pay for government we do not need and to exhaust the ability of government to support the unemployed. Use the fear of riots to continue to raise the ceiling. Lovely.
Spoken like a true “Keynesian”!
Ok, so you repeated your same point, Now answer the question. If the debt cannot be paid now then how can it be paid in the future especially after more borrowing. The Time is now for the hard medicine.
By the way the debt can be paid and default is not necessarily the only option right now. Send the monthly revenue to pay for the obligations and cut programs shrinking government back into its Constitutional confines.
SlightOfTongue to Bernanke: Leave America now, irresponsible-Marxist-Obambi-boot-licking-Marxist-enabling-America-hating-buffoon-of-the-decade!!!
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