Thursday, June 4, 2009

Bernanke Fires Warning

Yesterday Federal Reserve Chairman Ben Bernanke warned, during his testimony before the House Budget Committee, that “unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth.” So, the $1.2T budget passed by Congress and signed by President Obama is not fiscally responsible? Imagine that. The notion that we can spend our way out of a recession is foolhardy.

The Washington Post reported that “Bernanke’s testimony to Congress reflected growing concern among economists and investors that the nation’s long-term fiscal imbalances could stand in the way of economic recovery by driving up the interest rates that the government, businesses and consumers pay to borrow money.” The age of 20% mortgage rate is near. Currently the Federal Reserve is printing money to pay off the debt to China and other countries lending America money. The continuation of this will lead to galloping inflation and send America into similar dire straits that Germany saw after WWI.

Have the scholars that run our country not learned anything from history? Our population is aging and the baby boomer generation is nearing the point of entitlement. Congress does need to take drastic measures, unfortunately too many of them feel it is bigger government. Government has bankrupt Social Security, Medicare, Medicade, and now the Highway fund. It is time to give Government back to the people and return to the core beliefs of our Founding Fathers.

Because if we do not, there will come a time within the Obama administration that we see tax brackets of Jimmy Carter returning. That will only hurt our economy and finally bankrupt America.