Bernanke to Congress: We're Much Closer to Total Destruction Than You Think

CNBC

From Bernanke's prepared remarks:

By definition, the unsustainable trajectories of deficits and debt that the CBO outlines cannot actually happen, because creditors would never be willing to lend to a government with debt, relative to national income, that is rising without limit. One way or the other, fiscal adjustments sufficient to stabilize the federal budget must occur at some point. The question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people adequate time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will come as a rapid and painful response to a looming or actual fiscal crisis.

Here we go again. Straight from the horses mouth - but of course we've seen this one coming. the economy has been artificially stimulated and it seems to not have worked -duh- of course changes need to be made. you dont need a college degree to see that the economy has tanked. Just look at the true unemployment numbers which are 15-20%, and that more than 40% of the population is receiving a government check. The government in this country needs to get its act together!

Economic fear mongering or not... I see this as an excuse to start QE3 or something similar. I know Bernanke doesn't care if congress in September decides to raise the debt ceiling again. Sigh, we need more responsible people in charge of the US money supply instead of trying to downgrade it to toilet paper.



DISCLAIMER:

although this was from a feed from MSNBC on twitter., the article is not new, see time stamp:

Published: Wednesday, 9 Feb 2011 | 11:09 AM ET

Your post was not added a full minute and it was flagged and you were starred. This must be a whopper of a story topic. Or you have a stalker.


I agree with you on QE3.

seems like TPB are beginning the stages of pulling the plug on the great facade. old bennyboy is certainly one of the gang and for him to say this tells me we will be seeing some major economical changes coming much more quickly now.

we all remember how he has been saying everything is fine and dandy for several years now and all of a sudden, hey btw we are at the edge of the cliff guys. lol

It's me. Have you seen this guy? Purrrrrrrr, I guess my secrets out. I don't call it stalking, I call it unrequited love.

The thread title was deserving enough. Could you argue with it

reply to post by emberscott


I would not be surprised if I did.

But, yea this is big though. Bernanke is at the helm of our economy... or is the perceived head of it. Anything he says, does, etc can have a trickle down effect to every corner of the market. So yes, even if its subtle, or straight forward - anything he says will influence the market.

The deficit is actually much worse than what Bernanke and the rest let on. They never count the over 116 trillion unfunded liabilities. I wonder why?

Anyways, we can all be sure the legislature won't do anything fiscally responsible. Budgets? HA! All they know how to do is grease money from the rich and votes from the poor on the pretext of protecting each from the other.

Goldman Sachs,Google, JPMorgan Chase, Citigroup Inc, Time Warner, General Electric, Morgan Stanley... I'm sure they'll all be just fine.

I have said this before and I will say it again this is " The Calm before the Storm"

Probably a set up to allow for an Administration change...

What I don't understand is that corporations are openly gang prison raping the USA like the freshest meat to enter prison and no one does anything about it.

The one time when they should be using National Security to protect our country they aren't.
It boggles my mind. This is an acute threat to America but we get nothing.

It like they are tanking America on purpose and inflating the dollar. Just like they did the Weimar Republic to the mark.
And look where that led.
History is repeating itself.

Ben bought up all that debt to prop up the Boma admin. No one told them to do that.

Now Benny is gettin all twitchy about payback.

Too bad. The federal reserve is a private corporation. The public dont care if they fold. Congress will come up with a new currency and banking system and we move on.

This story is 2 months old. Still interesting but just for clarity.

reply to post by ugie1028


Good post... F n S....
So sad that it is true... and I fear it far too late when a insider steps outside and sounds the warning.
The Titanic comes to mind as the situation likely respresents a ship is already listing dangerously and the 'haves' are already in the lifeboats headed to safety, and I the Irishman is stuck onboard with the rest of the 'have nots' and the rats to fend for ourselves.

reply to post by ugie1028


the speech excerpt you posted is saying AUSTERITY MEASURES in bold letters.

forced rationing for the masses... as the upper eschelon elites are quite well funded for the economic collapse of less than 5 years in duration...


there are more than $700 Trillion in derivatives out there and GoldmanSachs among others are continually receiving partial disbursements as some of the derivatives get triggered for payments...

all them teachers and municipal employees that had super-duper retirement packages will soon find a stone wall blocking the entry door to benefits... they may get 40% of what they thought they would receive at retirement with even more future cuts possible.


the Øbama-Care health plan law...was supposed to be a tremendous revenue source for the federal govt...
i am reading between the lines of that Bernanke quote...he is obliquely threatning the Supreme Court to not overturn 'Øbama-Care' i.e.: Affordable Care Act
or the economy & Treasury will collapse, the dollar will get near hyper-inflation, Treasuries will soar to 8% from the current 2% interest rate overnight. there will be anarchy & riots in the streets


Bernanke is painting a gloom & doom picture

reply to post by ugie1028


Well, if he and his minions keep at it, yeah. Just look at Corzine and MF Global.
They are running about one sacrifical lamb a year.

Now Bernake says

US Fed Chairman Bernanke says banks need more capital

www.ibtimes.com...

so they have more capital onhand for the next slaugther.

reply to post by ugie1028


it would seem to be that this whole system has to come crashing down....it seems impossible for it not to. when i bring this up to people they just shrug there shoulders and go on. they obviously just want it to go away, but they are going to be in for a very very very rude awakening......as for me and my family, i think we will prepare the best we can.

Guys, before Its too late to reply on the first page.

I apologize for the misleading thread... although the story IS TRUE... it did not happen today as I thought it did when I posted it. The article was posted on FEB 9th 2011. /facepalm

I found it VIA a twitter feed and thought it was something new from this morning. I looked at the time-stamp rather than the date. /double facepalm

Again, I apologize for anyone who felt misled or lied to. I am sorry.

I think most people are missing the fact that the FEDERAL RESERVES CONTRACT with the United States EXPIRES 2013..... THIS MEANS THEY ARE AT THE END OF THERE DEAL WITH US...... OR SHALL WE SAY WE ARE AT THE END

reply to post by Doalrite


Of course it is going to crash. My business if finally doing really well...............

Ah anyone notice this story is over a year old????????????????

Originally posted by surrealist
Ah anyone notice this story is over a year old????????????????

Ditto.