Bernanke speaks of outlook which is rather dire

[GALTGULCH8]

<<<"Bernanke Tells The Truth: The United States Is On The Brink Of Financial Disaster

Dees Illustration

Robert Wenzel

Economic Policy Journal

Yesterday, Federal Reserve Chairman Ben Bernanke delivered a speech before the the Annual Meeting of the Rhode Island Public Expenditure Council in Providence, Rhode Island. In the speech, he warned about the current state of the government finances. His conclusion, the situation is dire and "unsustainable".

It is remarkable that mainstream media has given this speech no coverage. I repeat, the central banker of the United States says in his own words:

"Let me return to the issue of longer-term fiscal sustainability. As I have discussed, projections by the CBO and others show future budget deficits and debts rising indefinitely, and at increasing rates. To be sure, projections are to some degree only hypothetical exercises. Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit. Herbert Stein, a wise economist, once said, "If something cannot go on forever, it will stop."9 One way or the other, fiscal adjustments sufficient to stabilize the federal budget will certainly occur at some point. The only real question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people plenty of time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will be a rapid and painful response to a looming or actual fiscal crisis."

This is as close as you are ever going to see a central banker admit that his country's financial situation is so dire that it could breakup at any time.

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Here is the link to the article which appeared on Before Its News :

http://beforeitsnews.com/story/203/508/Bernanke_Tells_the_Truth:_The_United_States_is_on_the_Brink_of_Financial_Disaster.html

[sbeaulieu]

It is remarkable that mainstream media has given this speech no coverage. I repeat, the central banker of the United States says in his own words:

Look at who they cater to, and it's no longer remarkable.

~ Shane

[sjw]

Considering Bernanke's track record, I think this may be the best economic news I've heard all year.

Shayne

[DavidMcK]

His statement would have been reassuring if he had categorically stated that the Fed will not use the power of money creation to print our way out of debt. However daunting government debt is, it is small compared to debasing the currency system.

[sjw]

His statement would have been reassuring if he had categorically stated that the Fed will not use the power of money creation to print our way out of debt. However daunting government debt is, it is small compared to debasing the currency system.

Yeah, we wouldn't want to see the man behind the curtain. Might tend to wake up some of the sheep. Best to keep inflation slow and steady, then hardly anyone notices what is really going on.

Shayne

[GALTGULCH8]

His statement would have been reassuring if he had categorically stated that the Fed will not use the power of money creation to print our way out of debt. However daunting government debt is, it is small compared to debasing the currency system.

Yeah, we wouldn't want to see the man behind the curtain. Might tend to wake up some of the sheep. Best to keep inflation slow and steady, then hardly anyone notices what is really going on.

Shayne

Bernanke has been quoted recently saying that there is a mandate that the Federal Reserve maintain a certain amount of inflation!

The gentleman is a fanatical believer in the Keynesian school of deficit spending and quantitative easing. It was wrong when done by FDR whose policies prolonged the Depression and it is wrong now.

[sjw]

Yeah, we wouldn't want to see the man behind the curtain. Might tend to wake up some of the sheep. Best to keep inflation slow and steady, then hardly anyone notices what is really going on.

Shayne

Bernanke has been quoted recently saying that there is a mandate that the Federal Reserve maintain a certain amount of inflation!

The gentleman is a fanatical believer in the Keynesian school of deficit spending and quantitative easing. It was wrong when done by FDR whose policies prolonged the Depression and it is wrong now.

Fleecing sheep:

I don't think this is done for economic reasons. Economics provides the cover for what is really going on.

Shayne

Edited October 8, 2010 by sjw

[Brant Gaede]

The graph in the previous post probably understates the inflation. Today's dollar might only be worth 2 cents a century ago.

The basic problem with "a little inflation" is a snowball effect if people suddenly lose faith in the value of the currency. That'd be wakening up to a hyperinflation.

--Brant

central bankers are fools, ignorant and dangerous

[DavidMcK]

I think you should have put the legit source for your chart (Bureau of Labor Statistics) since we've all seen so much bogus information floating around.

Also notice this pattern: It took 35 years (+- just eyeballing) for the dollar to half its purchasing power after the Fed got started then 25 years then 10. After the nearly hyper-inflation of the 70's we got a reprieve thanks the the mighty Voelker (a democrat I might add); now I see nothing ahead but the same pattern, shorter and shorter periods to cut our purchasing power in half. Obviously something has to give in the next 20-30 years.

Edited October 8, 2010 by DavidMcK

[sjw]

I think you should have put the legit source for your chart (Bureau of Labor Statistics) since we've all seen so much bogus information floating around.

Feel free. I tried to find a dollar/gold graph but couldn't easily find it in google.

Also notice this pattern: It took 35 years (+- just eyeballing) for the dollar to half its purchasing power after the Fed got started then 25 years then 10. After the nearly hyper-inflation of the 70's we got a reprieve thanks the the mighty Voelker (a democrat I might add); now I see nothing ahead but the same pattern, shorter and shorter periods to cut our purchasing power in half. Obviously something has to give in the next 20-30 years.

Nobody has any business setting the value of my money but me and the party I am transacting with. Volcker is no hero.

Shayne