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Rising Deficits Pose Major Threat to Economy: Bernanke
CNBC ^ | Feb. 2, 2012 | Jeff Cox

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 ...


TOPICS: News/Current Events
KEYWORDS:

1 posted on 02/02/2012 6:08:48 PM PST by fightinJAG
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To: fightinJAG

If a tree falls in the forest and no one is there to hear it, does it make a sound?


2 posted on 02/02/2012 6:09:34 PM PST by fightinJAG (So many seem to have lost their sense of smell . . .)
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To: fightinJAG

Ya think?? The solution?? TAXES and more TAXES...and if that’s not enough....FEES.....FEES


3 posted on 02/02/2012 6:11:03 PM PST by Sacajaweau
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To: fightinJAG

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


4 posted on 02/02/2012 6:11:54 PM PST by GR_Jr. (ABR / AB0 (Anybody but Romney, and then Anybody but 0bama))
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To: fightinJAG

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?


5 posted on 02/02/2012 6:13:11 PM PST by EagleUSA
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To: fightinJAG
WOW, now almost everybody knows what's coming. Soetoro is ecstatic.
6 posted on 02/02/2012 6:14:53 PM PST by immadashell
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To: fightinJAG
If a tree falls in the forest and no one is there to hear it, does it make a sound?

If printing presses are running in the basement and no one is around to hear them, do they still keep the economy propped up?
7 posted on 02/02/2012 6:16:02 PM PST by ZX12R (FUBO GTFO 2012 ! We should take off and Newt washington from orbit.)
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To: fightinJAG

Politicians always do the right thing, but only after they’ve exhausted all other options.


8 posted on 02/02/2012 6:16:45 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: fightinJAG

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?


9 posted on 02/02/2012 6:18:33 PM PST by jwalsh07
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To: jwalsh07

Exactly. Captain Obvious!

Yet still no one seems to be listening.


10 posted on 02/02/2012 6:20:00 PM PST by fightinJAG (So many seem to have lost their sense of smell . . .)
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To: fightinJAG
what was your first clue???
11 posted on 02/02/2012 6:34:04 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: ZX12R
Zer0's train wreck rolls on (as planned).

US Debt 1-8-12

Hope and Change... Tragic.

Countdown until Jackwagon leaves Office: 353 days as of February 2, 2012.

12 posted on 02/02/2012 6:53:41 PM PST by BobP (The piss-stream media - Never to be watched again in my house)
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To: fightinJAG

The FED is reaping their inevitable end of warping perception into reality. Too many now actually believe money can grow on a tree.


13 posted on 02/02/2012 7:08:26 PM PST by Paraclete
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To: fightinJAG

Naaaaaw! Really?


14 posted on 02/02/2012 7:32:57 PM PST by Jukeman (God help us for we are deep in trouble.)
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To: fightinJAG

Rip van Winkle Bernanke just woke up.

UInsustainable-—No Sheit Sherlock.


15 posted on 02/02/2012 7:41:20 PM PST by Venturer
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To: Jukeman
Isn't this amazing???

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!

16 posted on 02/02/2012 7:42:27 PM PST by HeartlandOfAmerica (Geithner: Taxes on 'Small Business' Must Rise So Government Doesn't 'Shrink')
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To: fightinJAG

You can’t get anything past old Watchdog Bernanke!


17 posted on 02/02/2012 7:46:07 PM PST by Iron Munro ("Don't pick a fight with an old man. If he is too old to fight he'll just kill you." John Steinbeck)
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To: fightinJAG
"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.

Photobucket

Captain Obvious strikes again...
18 posted on 02/03/2012 2:02:46 AM PST by Right_Wing_Madman
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To: fightinJAG
"Rising Deficits Pose Major Threat to Economy: Bernanke"

Really, and the sky is blue during the day.

Calling Captain Obvious

19 posted on 02/03/2012 5:52:12 AM PST by 2001convSVT (Going Galt as fast as I can.)
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