Bernanke Urges Deficit Reduction

Status
Not open for further replies.
Messages
10,611
Location
Las Vegas NV
http://online.wsj.com/article/SB124403584900281215.html
 Quote:
WASHINGTON -- Federal Reserve Chairman Ben Bernanke Wednesday urged lawmakers to commit to reducing the nearly $2 trillion budget deficit, warning that the government can't borrow "indefinitely" to meet the growing demand on its resources. Mr. Bernanke also reiterated that the pace of economic contraction appears to be slowing, setting the stage for a return to growth later this year. But that growth won't be robust, he said. "Unless we demonstrate a strong commitment to fiscal sustainability in the longer run, we will have neither financial stability nor healthy economic growth," Mr. Bernanke said in prepared testimony to the House Budget Committee. (Read the full remarks.) He also told lawmakers that the Fed won't accommodate wider budget deficits by simply printing money, saying the central bank "will not monetize" the federal debt. Uh...you already are...
 Quote:
"Sizable" job losses, he said, should continue for "the next few months," pushing the unemployment rate higher. The government releases May payroll figures Friday. Economists expect another payroll decline of over 500,000, raising the jobless rate past 9%.
 Quote:
"I am comfortable with the policy actions that the Federal Reserve has taken," he said. He said the Fed will remove policy accommodation at the right time and at the right speed, though he acknowledged that will be a tricky call to make. Separately, Mr. Bernanke also said he expects the Fed's purchases of mortgage-backed securities will eventually provide revenue for the U.S. Treasury.
 
Messages
931
Location
Michigan
Sometimes you have to let things crash and burn and out of the ashes will come something better. What we printed will be paid by generations to come..it's not really fair...
 
Messages
4,837
Location
Kansas
If Bernanke really believes this, why was he not speaking out against Obama before this? Sounds like he's justifying the tax increase for the people making $250K a year, and everybody else, too.
 
Messages
39,806
Location
Pottstown, PA
Everyone, imo (always questionable), keeps aiming at the wrong targets. On our last evolution in shake downs (yes, folks, economic fads are packaged shake downs) ..who gained and who will suffer the costs? When you sift through the rubble ..and stop whining about the impacts and after shocks ...you need to see who got the gold in the shake down. Everyone keeps looking at who got stuck with the bill. If I were someone with a scope of anxiety, my cross hairs would be 100% trained on the big players that ended up bloated or unscathed in the carnage. My secondary targets would be their enablers. Now you're whining about the janitor at the "super cost site". Who benefited and left us to clean it up?
 
Status
Not open for further replies.
Top