Wednesday, June 3, 2009

Bernanke Warns Deficits Threaten Financial Stability

Of course, when the government runs out of investors in our debt, Bernanke, the worst inflator in history, will turn on the printing presses to pay for Obama's deficits. This is a little like Brer Rabbit begging not to be thrown into the briar patch. This crisis is engineered, as Lindbergh once said, as you would work out a mathematical equation. They will wreck our economy and then consolidate it under a global economy.

    By Craig Torres and Brian Faler

    June 3 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said large U.S. budget deficits threaten financial stability and the government can’t continue indefinitely to borrow at the current rate to finance the shortfall.

    “Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth,” Bernanke said in testimony to lawmakers today. “Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance.”

    Bernanke’s comments signal that the central bank sees risks of a relapse into financial turmoil even as credit markets show signs of stability. He warned the financial industry remains under stress and the credit crunch continues to limit spending.

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