Bernanke warns against steep budget cuts

Comments (19)
elvvis wrote:

The American Dollar is amazing!!!! We print trillions of them but they continue to maintain their value and have over the past decade. Don’t the Chinese understand they’re just holding worthless pieces of paper? Mark Montgomery NYC, NY

Feb 09, 2011 10:27am EST  --  Report as abuse
RJSciolino wrote:

So, using the “flooded engine” analogy; the engine still isn’t running (no jobs) and because its not running there’s no fear of a gasoline explosion (inflation), so, let’s just keep pouring fuel into the carb (Quantitative Easing) as we stand ankle deep in it, while we keep trying to light a match. Is anyone getting it yet?!!! The market is flooded with dollars and those dollars are pent up in the world’s largest banks after the sold their bond debt to the Fed. Once that capital…hundreds of billions in freshly printed money…is released, just what does one think will happen?

Feb 09, 2011 10:42am EST  --  Report as abuse
moweddell wrote:

What did Bernanke expect? The unemployment rate published currently at 9% is false. Beginning Jan. 1, the last years unemployed, both for the annual year ending, and the expired benefit recipiants were dropped off the state lists. This accounted for about 1.5%, thus yielding a real recent unemployed at 10.5% nationally. Further, the “Bail Out” programs were in the most part distrubuted to the very ones causing the economic disaster. Little of these funds got into the pockets of the actual major contributors to the national economy – the consumers and small business. With the tight money policies of the major lenders and credit card companies, along with a 24% interest rate, people do not have sufficient credit available to conduct business or the desire make personal purchases. Many are using their savings for some purchases and others are simply keeping their wallets in their pockets and are waiting to see which direction we take. All of this results in a sluggish economy. Further, the impact of the federal government is no longer trusted. Therefore, the recovery will last longer. It is time to turn the government around and get back to the basics – stop government expansion and spending and let the citizen consumer keep his money, etc…Monty Weddell Dallas, TX

Feb 09, 2011 10:51am EST  --  Report as abuse
rick121x wrote:

Sometimes I can hardly believe that I am so ignorant: Bernake’s notion that inflation is independent or rising food and commodity costs. Is it that these are “global” that makes them independent? Or is it that his income is such that it he does not notice these effects? When food goes up, does not the price inflate? It seems to me that it does!

…just so dumb these days! Or maybe it is not me ????

Feb 09, 2011 10:53am EST  --  Report as abuse

The Bernack is in his world….yes simple things such as food and gas for the car are not even on his radar! We are in such a mess that has been building up for years. Our day of reckoning is upon us and it’s not going to be pretty. The FED has already destroyed the dollar by about 95% since 1913. Think about for a minute…in just 1970 a new Chevy pickup, I bought one, was around $4,000 at most and I was making around $12-15/ hour. I bought a nice starter condo for $17,900 with 20% down (Appox 4,200) and had a pymt of approx $150/month. Now I make about the same income or less 40 years later and to buy a new truck costs approx $30-40K and a starter house is $200K!!! Get the picture???? Funny how the elites income has risen expotentially in those same years…CEO salaries are up about 400%!!! The little guy got the shaft!!!

Feb 09, 2011 11:32am EST  --  Report as abuse
justiceserved wrote:

Ryan is a fool, raise interest rates & we’d be in a depression, housing would make earlier collapse look like child’s play, and credit would dry up. This is the approach Hoover took to take a stock slide & send it into the Great Depression after market was firming up. Typical Republican nonsense (no economic knowledge or sense), cut taxes, keep defense spending high, keep wars off books, huge windfall to big pharma with prescription drug program & then say SS is the problem when it has a 3.5 trillion surplus!

Feb 09, 2011 11:34am EST  --  Report as abuse
DrJJJJ wrote:

We’ll be downsizing alot more this year when we cut government spending big time in-no choice now! Inflation will be the last of our worries folks-maybe a spike or two to try to revive the dead-see Japan for outcome!

Feb 09, 2011 12:16pm EST  --  Report as abuse
DrJJJJ wrote:

I’d make the case we may just be very close to full employment!!! The internet, computers, automation and the exporting of jobs/downsizing is continuing folks! Let’s make the mental adjustment and prepare for a generation of deflation!! Many more in government (1 out of 5 jobs now) will need to work PT & Temp!

Feb 09, 2011 12:20pm EST  --  Report as abuse
fritzk wrote:

jobs are not coming back to america so long as american labor is the most expensive on the planet. not in this new world order. media and government each do harm to the american public by promoting or perpetuating the myth that there is any interest in adding jobs in america as anything but the very last resort.

Feb 09, 2011 1:05pm EST  --  Report as abuse
the_Gaul wrote:

Of course Bernank thinks inflation is too low. Inflation is the Only way that the non-goods-producing Fed can conjure profits.
Food and energy used to be considered in inflation computations, but a continuous stream of high inflation statistics prodded their disappearance. I don’t know, but I’m guessing that health care costs are not considered for inflation statistics either. How much has your health insurance increased this past year? Two years? Five years?
Behind the Fed’s push to pump $600B into the economy [out of thin air] is their intention to grab $600B more of U.S. assets [at pennies on the dollar] The Fed is a dangerous, unconstitutional entity. Does your representative represent you? Demand the end to the Fed and a return to U.S. currency control by the Treasury.

Feb 09, 2011 2:24pm EST  --  Report as abuse
SanPa wrote:

I suppose that Mr. Bernanke doesn’t write the checks in payment for utilities, fuel, groceries, insurance, and rent. It might be a useful exercise if he left Fort Washington to visit a Gaithersburg Mall, and converse with a few commoners.

Feb 09, 2011 2:33pm EST  --  Report as abuse
gunste wrote:

What should we expect, when people are digging themselves out of too much debt, their houses have lost a lot of value, they have smartened up and the savings rate has gone up. All that obviously will preclude the ability of consumers spending the 65-70% of GDP that is needed for a healthy demand economy.
The US population had better get used to a lower standard of living then the one that had been fueled by borrowing and the “buy now pay later” advertising from credit card companies and banks. That, in addition to all the exporting of manufacturing and other jobs to Asia that keeps the unemployment level high, spells lower demand and business in the US.
Corporations are sitting on lots of cash but have no reason to invest or expand, since capacity is adequate. So there will be little change. The industrial-military complex is doing well, with Republicans cheering on the endless wars and the activity of defense contractors in their districts. The plutocracy has no interest in the poor and low income citizens, since their labor needs are filled.
With this scenario, the wealthy will continue to do well, with the GOP protecting their taxable incomes, while the biggest corporations pay little or no taxes at all. Those with money do not feel any responsibility to keep the country in ship shape, and so it declines.

Feb 09, 2011 2:55pm EST  --  Report as abuse
txgadfly wrote:

How wrong can you be?

The most insidious thing a Government can do to its citizens is to deprive them from free and fair elections. That is the biggest fraud in the USA. False “choices” where the only ones are all “more of the same”. False courts pretending to deliver justice to the people while allowing the gross rigging of elections. Lies, deception, bad faith promises and bribery on an almost universal scale in the USA.

It is no wonder at all that things do not and will not change here. War without end.

Feb 09, 2011 3:32pm EST  --  Report as abuse
PatientType wrote:

Inflation may be too low for Mr. Bernanke’s friends in the banking industry. But if inflation does start to build, he’ll be throwing a lot of young, low-income families and older, fixed-income seniors under the bus in order to stoke corporate profits. Bernanke’s still working to protect the same powerful interests that got us into this mess.

Does it seem to anyone else that Bernanke, as a high flying economist who had all the data, failed to anticipate the greatest financial crisis since the Great Depression. Now that the rest of us know what Bernanke and the other insiders new then, it’s dazzlingly obvious that allowing massive generations and sale of bundles of bad debt is going to go bad in a big way. You don’t need an economics degree to know that you can’t run an economy with virtually no regulation and trust that innate human goodness will ensure that all will be well.

It is time for a new Fed chairman folks. I want a chairman who is discussing the impending break up of the super banks NOT one who hopes to bring the ravages of inflation down on what savings the American people have managed to eke out.

Feb 09, 2011 3:45pm EST  --  Report as abuse
Sinbad1 wrote:

It’s like that movie Speed if yo slow down you will die so you have to keep flying along. Don’t worry about running out of fuel because if you do run out you will die. It was a pretty crappy movie and even worse in real life.

Feb 09, 2011 6:17pm EST  --  Report as abuse
EagleDriver wrote:

Bernanke is a crook and corrupt. He should be immediately fired and assigned to a hard labor camp. He has given trillions of tax dollars to million/billionaires with little if any economic benefits. Kick the Obama cronie out before we completely sell out to China.

Feb 09, 2011 8:18pm EST  --  Report as abuse
xloanguy wrote:

The only thing you can do it profit from his actions to offset your losses, as your dollars won’t buy didly. And its happening already. If we loose reserve status we will be really screwed as fuel prices will skyrocket. But, then he doesn’t worry about that because that isn’t factored into the cost of living, same as food. People in Egypt are paying 0ver 50% of their income on food. It may get to that here quickly, and it would get ugly. Invest in precious metal mining companies. There is a provision in the patient protection act section 9006 giving the government more power to take, from us citizens, like your physical gold. Nice…I feel like I’m in a bad casino.

Feb 09, 2011 8:20pm EST  --  Report as abuse
ROWnine wrote:

You have to wonder why the world isn’t impressed with our demon cracy.

Feb 09, 2011 8:32pm EST  --  Report as abuse
LouannO wrote:

I agree “There is nothing more insidious that a country can do to its citizens than debase its currency,” Ryan said”. This government has done everything in it’s power to shoot the American public in the foot. I will be so glad when election day rolls around. I will be voting for Trump.

Feb 11, 2011 7:02pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.