Skip to comments.Rising Deficits Pose Major Threat to Economy: Bernanke
Posted on 02/02/2012 6:08:43 PM PST by fightinJAG
Rising federal budget deficits are posing a significant threat to the U.S. economy and are likely to cause a crisis if not brought under control, Federal Reserve Chairman Ben Bernanke told Congress Thursday.
Calling the situation "unsustainable," the central bank leader pointed out that surging health-care costs, along with the high level of government spending used to pull the economy out of recession, are creating fiscal hazard.
"Having a large and increasing level of government debt relative to national income runs the risk of serious economic consequences," Bernanke told the House Budget Committee. "Over the longer term, the current trajectory of federal debt threatens to crowd out private capital formation and thus reduce productivity growth."
At the same time, he also warned Congress not to pull the reins too tightly so as to threaten growth.
The Fed, following its meeting last week, stopped short of announcing another round of asset purchases, commonly known as quantitative easing.
(Excerpt) Read more at cnbc.com ...
If a tree falls in the forest and no one is there to hear it, does it make a sound?
Ya think?? The solution?? TAXES and more TAXES...and if that’s not enough....FEES.....FEES
No sh*t Ben! You just figure this out? You’re 8 time zones behind your own ass.
Why don’t you stop printing all that money and force your buddy Barry to exercise some spending control
An absolutely brilliant observation. Only he could have spotted this disaster upon us. A monetary genius. And a flaming socialist lap dog to the Obama agenda.
Next profound discovery, please?
Politicians always do the right thing, but only after they’ve exhausted all other options.
Ya think Ben? What was your first freaking clue? Let me guess. You ran out of ink? Or paper? The plates wore out? Stepper motors burned up from over use?
Exactly. Captain Obvious!
Yet still no one seems to be listening.
Hope and Change... Tragic.
Countdown until Jackwagon leaves Office: 353 days as of February 2, 2012.
The FED is reaping their inevitable end of warping perception into reality. Too many now actually believe money can grow on a tree.
Rip van Winkle Bernanke just woke up.
UInsustainable-—No Sheit Sherlock.
What kind of economics degree does it take to figure out that for every dollar that the govt sucks up is a dollar that the civil economy can't suck up for growth????
What a low-grade moron!
You can’t get anything past old Watchdog Bernanke!
Really, and the sky is blue during the day.
Calling Captain Obvious
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