Bernanke: America Facing Financial 'Armageddon'

Bernanke: America Facing Financial 'Armageddon'

Federal Reserve Chairman Ben Bernanke

Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that America is facing something approaching a debt Armageddon.

"The deficit will recede somewhat over the next two years as the temporary stimulus measures wind down and as economic recovery leads to higher revenues," he said, testifying before Congress' Joint Economic Committee.

"Thereafter, however, the annual deficit is expected to remain high through 2020, in the neighborhood of 4 to 5 percent of GDP," he said.

Not sure why this wasn't on ATS yet unless I missed it under a different headline(?).

Those are some strong words coming from the vile, always hated, CHMN.FED

Little Timmy G. Isn't so gloomy...

Check the article for some really cool revealing info... Maybe NOW is the time to obliterate the FED. People you just want give nuggies until they bleed.

And as always ... Do it with a smile!


[edit on 4·15·10 by DrMattMaddix]

Yeah this is interesting times!

I read in this article yesterday that IMF suddenly tripling its lending facilities?:

They are possibly waiting for a sudden demand of their 'SDR' Special Drawing Rights and are preparing for something.

And this ain't soley about Greece or the €uro - I think the Asian creditors finally need to diversify their holdings and want the SDR currency basket instead of the dollar only.

IMF Prepares for Financial Meltdown

The IMF has been making a lot of noise recently, but their biggest move almost managed to slip through completely unnoticed.

The Executive Board of the International Monetary Fund (IMF) today approved a ten-fold expansion of the Fund's New Arrangements to Borrow (NAB, and transfer the Fund's premier standing credit arrangement into a more flexible and effective tool of crisis management. The NAB will be increased by SDR 333.5 billion (about US$500 billion) to SDR 367.5 billion (about US$550 billion), representing a major increase in the resources available for the Fund's lending to its members.

This IMF program didn't even exist until a year ago, when the IMF began issuing SDRs for the first time since the 1970's. The IMF has only sold SDRs in times of global financial stress.

It makes a person wonder "Why now?" Why is the IMF suddenly tripling its lending facilities? What do they know that we don't?

To answer that, let's look at the announcements of the past few weeks.

The IMF has been busy issuing warnings over the past couple weeks. If this massive expansion of lending resources is a direct reaction to their recent statements, then we are looking at a severe financial shock in the near future.
---

That's where the SDR comes it. They simply swap out their dollar-based debt for SDRs.
It should be noted that SDR is merely a ledger entry. Its is a composite of major reserve currencies, rather than a new currency by itself, but it does help diversify.

The reason for the IMF rolling this out now might be two-fold:

1) an approaching financial crisis that the IMF needs to build up its reserves to prepare for, and

b) the demands of Asian creditors to diversify their holdings in order to help avoid the impact of that coming financial crisis.

www.huffingtonpost.com...

Yes! something major is definitely lurking behind the curtain.

Op, yep there was a thread yesterday on this with video i think.

Originally posted by andy1033
Op, yep there was a thread yesterday on this with video i think.

Must be under a different headline as I mentioned above.

I search for keywords as noted in the picture below. Usually an accurate representation... Implies that Google.bots are here constantly...

[atsimg]http://files.abovetopsecret.com/images/member/e2f9ccdbd3f4.jpg[/atsimg]

There's also a thread bashing Bernanke (and Obama) for the chairman saying the recovery looks to be strong from the same testimony....Also, the 4-5% figure sounds much more reasonable than the 90% scare number being thrown about to heighten politically advantageous fear and anger.

Best,
Skunknuts

[edit on 4/15/2010 by skunknuts]

Bernanke is not to blame for Congress' out of control spending.

Between the decade long military spending in Iraq and Afghanistan, the bloated phony-baloney "stimulus" package, and now this huge unconstitutional healthcare boondoggle, you have only Congress to blame.

The deficits we are running can't be blamed on the Federal Reserve - They are the result of Congress' out of control spending addiction.

Originally posted by CookieMonster09
Bernanke is not to blame for Congress' out of control spending.

Between the decade long military spending in Iraq and Afghanistan, the bloated phony-baloney "stimulus" package, and now this huge unconstitutional healthcare boondoggle, you have only Congress to blame.

The deficits we are running can't be blamed on the Federal Reserve - They are the result of Congress' out of control spending addiction.

The deficits we are running can't be blamed on the Federal Reserve????? Source please. I want a source provide the data as to why you would make a statement to what I believe to be very far from the truth. I'm not trying to bash you or anything like that so please do not take this as me engaging in flame war like activity or bashing you. I'm just really curious as to why you would say that.

I personally believe that's a mixture of the two: Congress overspending and the Federal Reserve using our money for bailouts not just here but across the world. The source I have for that is the grilling that Grayson and Paul gave Bernanke concerning very odd data and statements that Bernanke provided concerning over 600 million of our money going to foreign banks.

The deficits we are running can't be blamed on the Federal Reserve????? Source please. I want a source provide the data as to why you would make a statement to what I believe to be very far from the truth. I'm not trying to bash you or anything like that so please do not take this as me engaging in flame war like activity or bashing you. I'm just really curious as to why you would say that.

In a nutshell, all the Fed does it set interest rates, print money, and lend. It's basically a private banking cartel with minimal Congressional oversight.

Congress is the entity that actually borrows the money - for wars, for fake "stimulus" packages, etc. You can thank Congress for our bloated deficit - They are the ones that authorized all the spending. All the Fed did was print the money and lend it.

The Fed didn't vote on the Iraq War, or to send more troops to Afghanistan, or to pass a bogus stimulus plan, or to pass a bloated healthcare bill. That's Congress, not the Fed.

Congress spends, and spends, and spends. They can't say no to any entitlement program. And this is not a partisan issue - The Republicans were just as bad as the Democrats when it comes to spending.

Congress is kind of like a sub-prime borrower that borrows to purchase a house he can't afford. Congress would rather borrow money on their Chinese credit card than actually reduce their spending habits.

...and the Federal Reserve using our money for bailouts not just here but across the world. The source I have for that is the grilling that Grayson and Paul gave Bernanke concerning very odd data and statements that Bernanke provided concerning over 600 million of our money going to foreign banks.

Think of the Federal Reserve as a private banking cartel of the nation's largest banks. It sounds like a governmental agency, but really it's not. It has Congressional oversight, but that's pretty much a joke. The Fed Chairman runs the show. He's in charge of setting monetary policy for the country. Whether that's right or wrong is a whole other discussion. But that's the reality.

The Fed's money is not "our money". It's private banking money, or money hot off the Fed's printing presses. Until the politicians and/or the American taxpayer take control of the printing presses (not gonna happen), the Fed can pretty much lend to whomever they want with few repercussions (within reason - obviously, they aren't lending money to our enemies, etc.).

If you think that "We the People" own the Federal Reserve - or any of its money or assets, you are sadly mistaken. This is not the American people's money being lent to the U.S. government. The American taxpayer is the one that pays the interest on the debt owed to the Federal Reserve.

Again, blame Congress. They're the ones with the bad spending habits.

[edit on 15-4-2010 by CookieMonster09]

Originally posted by skunknuts
There's also a thread bashing Bernanke (and Obama) for the chairman saying the recovery looks to be strong from the same testimony.

Yep, the other side of the coin:
Bernanke confident on recovery


[edit on 15-4-2010 by kinda kurious]

Sure its nothing we can't spend our way out of.

ATTENTION AMERICANS: When your own finance minister says your nation is facing a financial Armageddon its probably not a good thing.

And to chime in on the Fed vs Congress fault debate- The closed congress session back in 08 was led by Paulson of the Tres. but they're all crooks. Hang em high I say.

Originally posted by CookieMonster09
Bernanke is not to blame for Congress' out of control spending.

Between the decade long military spending in Iraq and Afghanistan, the bloated phony-baloney "stimulus" package, and now this huge unconstitutional healthcare boondoggle, you have only Congress to blame.

The deficits we are running can't be blamed on the Federal Reserve - They are the result of Congress' out of control spending addiction.

First, S&F for this thread, why this thing is not getting more flags is beyond me.

Now to Cookie....So, Bernanke and the Fed are not to blame huh?

Well, actually my friend they are and let me show you why...

Ron Paul grills Bernanke on the Massive Expansion to the IMF's New Arrangement to Borrow - 4/14/10



Listen, this is just the latest example in a long line of other misgivings or at the very least behavior that is not beneficial to the American people. I could easily provide you a list of more instances than you probably care to read.

For you to actually waste on lick of breath on the Federal Reserve and their Grand Puppet, Ben Bernanke, is not only outrageous it's offensive.

Please, sir, go back to the drawing board and do some research.

[edit on 15-4-2010 by OnTheFelt]

wow the PB & J i mean TPTB seem to really be throwing around the "ARMAGEDDON" meme quite a bit...



wasn't long ago that Obama in two different speaches/rallys used the term.

and i've heard it repeatedly used in descriptive metaphor on NPR and PRI.

NLP anyone? lil dash of predictive programming eh? ...

Dee skie ees fawleen and eye want mye Mommieeeeee!!

-

reply to post by prevenge


Yup, I agree....check out this beauty from Moodys. Expect social unrest at the very least in the near future.

Don't worry, they made it clear in the piece that there wouldn't be a revolution.

Moodys warns of 'social unrest' as sovereign debt spirals


I guess they had forewarning Bernanke was gonna say this...

What if we just didn't believe in money anymore... I mean it's created out of thin air and generally get collected by those who have the most to begin with.

If 99% stopped using cash, the top 1% would lose 99% of it's power/wealth.

It will come, just keep pushing the envelope and we are good to go in a couple of months. ;-)

reply to post by gagol

We would have to greatly alter how we understand property rights ie start sharing everything. Do you think everyone would go for it? Maybe someday but those tablets Moses had support private property so...
OR- we could barter but global trade of ipods and the raw materials required to make ipods might not like that.

Maybe some here and many Americans and other people of this world, don't fully understand how this International system works?

I'm not saying that I fully understand how this International system work, but I think CookieMonster is mostly right with what he's saying above.

To have better understanding of this, we must first understand how the whole Fiat system and the 'Dollar as a world reserve currency works!'

I can only point out the right direction to help someone but you have to do the research work yourself - and you can google most of it.

1. The Fiat system is a International system with ONE world reserve currency for the moment.

(well the Euro is now there, but most trading and Oil is still mostly done with dollars)

2. This reserve currency status was agreed upon in the International Bretton Wood Agreement 1944 with 45 governments, and has since then been the currency for trading in the world - and has given incredible unfair advantage for creating wealth in America since 1945 with international trading and the Petro Dollar Recycling System.

3. The BIS BANK - The IMF - The World Bank - The FED - are like the adminstrators of this International Fiat system of the world with the Dollar as the world's reserve currency.

And The BIS Bank in Basel now acts like "The Central Bank" for other Central Banks in the world - with the Basel 2 agreement for the central banks.

The Bank for International Settlements (BIS) is an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks.

The BIS fulfils this mandate by acting as:

• a forum to promote discussion and policy analysis among central banks and within the international financial community

• a centre for economic and monetary research

• a prime counterparty for central banks in their financial transactions

• agent or trustee in connection with international financial operations

www.bis.org...

The Board of Directors from each country at BIS BANK
www.bis.org...

Member central banks (scroll down a bit)
www.bis.org...

The history of BIS BANK
www.bis.org...

You should research each of those organisations seperatly to fully understand their function and their part of this system.

The FED is only a small part of this gigantic machinery.

(Not 'that' small since they create the world reserve currency, but you know what I mean!)

The IMF's primary purpose is to ensure the stability of the international monetary system. the system of exchange rates and international payments that enables countries (and their citizens) to buy goods and services from each other.

The IMF was created in the Bretton Wood Agreement 1944 by ALL member countries who gave away part of their wealth to set up the fund - the IMF call this ownership : 'Quotas'

Where does the IMF get its money?

The IMF's resources come mainly from the quotas that countries deposit when they join the IMF. Quotas broadly reflect the size of each member's economy: the larger a country's economy in terms of output, and the larger and more variable its trade, the larger its quota tends to be. For example, the United States, the world's largest economy, has the largest quota in the IMF. Quotas are reviewed periodically and can be increased when deemed necessary by the Board of Governors.

www.imf.org...

4. To help you better understand the advantages which the USA and her Dollar had with this 'world reserve' system, I suggest you to research:

'PETRO DOLLAR RECYCLING SYSTEM'

5. All these great advantages for the US economy holding the world's reserve currency since the 1944 agreement has begun to upset some of the other growing economies who now want a more diverse world currency basket.

Because to the world - The Bretton Wood system was an unfair system which gave advantages to the US economy at the expense of the rest of the world holding the Dollar as the sole reserve currency.

This is one of the reasons why you now hear all these voices from China, Germany, Russia, Japan asking to use the IMF's 'SDR' Special Drawing Rights as the NEW world reserve currency instead of soley the Dollar.

The SDR currency basket is made up of, and contain the main other strong currencies of the world as well.

The SDR basket is based of, and contain for the moment these currencies:

Euro - Japanese yen - Pound sterling - U.S. dollar

But the G20 countries have been discussing to include the currencies of Russia and China into the new SDR basket as well, which would replace the dollar as the SOLE world's reserve currency.

But the dollar would still be a great part of the basket, but not as the world's reserve currency soley - it would share that status with the rest of those currencies in the basket.

This would be more fair to the rest of the world, and their growing economies.

Of course! all of this is based on the same fraudulent Fiat money system.

But to say as many do that the US is the ONLY country who is bailing out other countries in the world, just because some of these organisations are based in the US - is not totally correct.

They are all partners in this crime.

Other countries and their taxpayers are also sending their money to these International organisations to be distributed to whatever country who urgently needs the money - often with very tough rules & conditions attached. And the private banks and financial institution take their part of the loot.

Some are screaming - LOOK! they are going to bail out another country with OUR tax money! lol!

Good Morning! Welcome to the club! we have ALL been in this scam since 1944!

[edit on 16-4-2010 by Chevalerous]

Yes the American people still pay in blood our interest on a debt owed. Its amazing how the FR is just a barnacle type loan shark that has been stuck to us for over 200 years here, and thousands in a more global sense.

"We making money cause we had it in the first place" -The Coup

Courtesy of the banking cartels. They have the real money, all we have is a promise to sell our a$$ for $$$

Now to Cookie....So, Bernanke and the Fed are not to blame huh? Well, actually my friend they are and let me show you why...

The Fed didn't authorize the egregious spending of the past decade. Congress did. All the Fed did was lend the money.

I blame the borrower - Congress. You blame the lender - the Fed. Fine with me. Blame whomever you want.

Personally, I could care less who the lender is. I am more concerned with the egregious, out of control spending habits of our Congress.

Stimulus plan? A joke. Healthcare? A debacle. Military spending? Unprecedented. None of which was decided by the Federal Reserve, but instead decided by Congress.

For you to actually waste on lick of breath on the Federal Reserve and their Grand Puppet, Ben Bernanke, is not only outrageous it's offensive.

Easy tiger. First, I don't think you actually read my post. I never came to the defense of the Federal Reserve. I merely placed the blame for the deficit where it rightly belongs: Congress.

That's who got us into this mess. To suggest that this is somehow the blame of the lender, the Federal Reserve, is pure nonsense.

Congress sets the spending priorities. Power of the purse is what they call it. Unfortunately, we're in debt up to our eyeballs.