Skip to comments.Bernanke: deep spending cuts could derail recovery ('self-inflicted wound' looms)
Posted on 07/14/2011 10:03:10 AM PDT by NormsRevenge
Federal Reserve Chairman Ben Bernanke warned Congress on Thursday that overzealous cuts to government spending could derail an already fragile recovery and said a U.S. debt default could wreak financial havoc.
"I only ask ... as Congress looks at the timing and composition of its changes to the budget, that it does take into account that in the very near term the recovery is still rather fragile, and that sharp and excessive cuts in the very short term would be potentially damaging to that recovery," Bernanke told members of the Senate Banking Committee.
Congress and the White House are stalemated in talks on cutting the budget deficit, with Republicans seeking $2.4 trillion in spending cuts in exchange for agreeing to raise the $14.3 U.S. government borrowing limit. The U.S. Treasury has said it will run out of money after August 2 to pay all of the country's bills if the a deal is not reached to raise the debt ceiling.
On the second day of delivering the Fed's semiannual monetary policy report to Congress, Bernanke renewed his warning that a U.S. debt default would be devastating for the U.S. and global economies.
"It would be a calamitous outcome," Bernanke said. "It would create a very severe financial shock that would have effects not only on the U.S. economy but the global economy."
Failure to raise the debt limit in time would constitute a "self-inflicted wound" to the economy, he added.
(Excerpt) Read more at finance.yahoo.com ...
it will definitely drive unemployment up at first... public service employment especially, which is the point.
To which the crowd says..
What Recovery? ;-]
And who’s pocket is Ben Boy in?.......
” derail recovery “
It’s okay, then...
No recovery, no problem....
Translation. Stopping borrowing will ruin all my plans to keep the Ponzi going.
Don’t worry Ben!....that train has definitely not left the station.
Overzealous cuts to government spending??? Is he for real??? So, tightening belts will get us further in debt? No wonder we’re in such a mess. Slash government spending to the quick. Don’t pay congress. Don’t pay the Whiny Butt in Chief and don’t let him or Mooch-elle go on any more vacations. No more golf games or ice cream until the budget is in the black.
Most Keynesian theories on government stimulus require that consumers and businesses only become enthused with the piles of government money being passed around but never look at (or even worse panic over) the huge debt being piled on the nation. I think we've hit the point where every dollar of government "stimulus" is actually depressive because one person gets that dollar and three hundred million look at the debt.
There is no recovery
Recovery? What did I miss?
make that High-Speed derail job
Obama is bent on the obliteration of this nation as it was established.
Ben is a puppet too.. ya have to look close but the strings are there.
Ben Bernanke, Bambi’s Buttboy, blows at bamboozling.
Think about it. This jackass says, essentially, shrinking the federal government is a danger to our economy.
The GROWTH of the federal government is the danger...but he sat there and said what he said with a straight face.
“We’ve maxed out our Visa and those dirty Republicans are balking at letting us max out our Mastercard!”
Bernanke is now a full collaborator in the destruction of the United States. The sole purpose behind QE is to fully fund government excess. Raising the debt ceiling will simply give Bernanke permission to initiate a further expansion of the money supply directly into government coffers. All of these traitors should be drawn and quartered.
By “recovery,” Bernanke means the stimulus his elitist fascist are getting from the Fed.