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.

8 comments:

  1. The problem of the theme of this blog is that per the prognostications of the author, to be right means this country will have to turn into a socialist state with $1000.00 loaves of bread. Are we being serious here? I know what it is like to absolutely despise an administration, as I did the Bush administration, but I did not write a blog that foretold a totalitarian state.

    This country requires debate, but that debate must have reason. If the writer of this blog is correct then the Obama administration is going to be the last administration of this country as it won’t make it four years with our institutions in tact. I hope for everyone sake including the conservatives who claim to “love” this country that we will get through this current economy and together find solutions to all the issues that this blog shows concern.

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  2. I do not hold any illusions that the "right" stance is to label or hope the USA is or becomes a socialistic state.

    I agree the Bush administration for the past two years embraced spending and neglected fiscal responsibility. I have provided reason and rational behind my blog enteries. In response the rhetoric from some have been emotional.

    2010 will bring about the change this country needs to reverse the course of fiscal responsibilty the current regime is undertaking. No one can argue the fact that Obama's budget is far greater than all previous adminstrations combined.

    As I said in this post, Ben Bernanke, appointed to the Fed Chair by President Obama, is warning Congress that we cannot sustain the spending spree and dire consequences are to follow if we do not alter course. Read his own words. I am on putting words in the Fed. Chairs mouth. They are his words.

    Instead of debating the facts, emotion is at play. Emotional conversations rarely articulate rational thought. I started this blog, not becasue Barak Obama was voted into office; rather at the suggestion of many. The many that I typically sent emails to over the past year and half voicing my concerns and looked for rational conversation in exchange.

    Please go back to the start of this post and read what Ben Bernanke said. Although they echo my words. I am open to finding solutions together. Offer some up.

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  3. I'll have to read the entire testimony of Ben Bernanke as you have only quoted one line and from that line came to the conclusion that the policies of the current administration are "foolhardy". The post continues to say that if the Obama administration continues with their economic policies we will have an economy similar to Weimar Republic of Germany after WWI. You then make the an anti intellectual remark that the "scholars that run this country" have not learned from the consequences of prior government's mistakes and end by saying that the Obama administration will bankrupt the United States. Given my point of view don't you think this would make someone with a different point of view emotional?

    Also, I don't think 2010 is enough time for the conservatives to get their acts together to regain a majority in either legistlative branch. What the poll...only 30% of the people in this country are admitting to being conservatives?

    I do not mean to question the motives of this blog as I read and post on it and like to read other points of view...I get frustrated that most political and economic items posted here are at time a bit over the top and I've rarely read any other writer call you on that.

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  4. My summation of Ben Bernanke and the statement chosen is, yes, a conservative take on the issue. Now I do agree that a more liberal stance exists from what Bernanke stated. In the end, as Bernanke concludes the current state does not breed long term prosperity; rather ruin through higher interest rates for all and no economic recovery.

    I compare the warning sign to WWI Germany because many during that time did not see Hitler as a viable threat to the Jews, Europe, Russia, or the United States. As history has shown that is much the contrary. Do I go to far with the analogy, perhaps. As I hope ten years from when we look back at this blog entry, my analogy was not prophetic.

    Agreed that 2010 will not reverse the tide of the Democratic majority but it could reverse the tide of bills being passed along Congress in record speed without being read. The confirmation of Sotomayor is another example of ramming something through. Harry Reid even said he has not read one decision of Sotomayor and plans not to as her confirmation should be swift.

    Really? Harry Reid, you don't want to make sure that Sotomayor is properly vetted as she is up for a seat that has only one exit plan; retirement.

    I wish more people on all sides of the issues I blog about would speak their mind. Some do through Facebook but I'd hope they start here more. Invite others to participate, spread the word that what exists here is an open forum for honest, rational, and respectful thought on the topics that shape our world.

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  5. Since, for some reason, conservatives think comparing the election of Obama as president of the United States to the election of Adolf Hitler the Chancellor of the Weimar Republic of Germany in 1933, is a valid comparison, let's examine the absurdity.

    World War One started in 1914, when Germany was an imperial state run by a Kaiser. Germany, having backed Austria in their invasion of Serbia initiated a domino effect of mobilization of the Armies of Russia and France who were allied against Germany and Austria. Yada, yada, yada, the war kills millions and Germany signs the armistice with the allied powers after the Kaiser had abdicated the thrown under severe social and political pressure. Germany declared itself a republic in 1918 and ultimately the German “Weimar” republic signed the treaty of Versailles that assumed Germany’s full responsibility for the war and forced a large burden of reparations.

    On top of severe economic issues, there was also a deep political divide. There was on the far left communist and socialist, in the middle republicans and conservatives and on the right monarchist and fascists. Please not the political spectrum because it’s integral to making the argument of discontinuing the Obama/Hitler comparison. Without getting too into detail of the history, the democratic system the Weimar Republic founded kept the country together until 1933 when it was forced to create a coalition with the national socialist party, not to be confused with the socialist party. The national socialist had convinced enough people that it had a plan to restore the pride and stature of the Nation of Germany that the people elected a majority of national socialist to the government.

    Having secured, through democratic means, a majority, the national socialist with Adolf Hitler as Chancellor proceeded to dismantle the Weimar Republic and its democratic institutions, in its place they created a fascist state. What is fascism? Simply put it’s the far right of the political spectrum. It’s a dictatorship backed by a coalition of military elite, aristocracy, industrial and financial institutions. Fascism enables monopoly on government, industry and financing that is capitalistic, but does not foster a free market…industry and financing are in bed with government to maximize profits and output. Fascism comprises a radical and authoritarian nationalist political ideology and a corporatist economic ideology. Sound anything like the Bush administration?

    While the Bush administration was not fascist, conservatism is on the same side of the political spectrum as fascism and a closer comparison than fascism is to the Obama administration. If you are going to compare the Obama administration to anything that makes sense perhaps you should compare the Obama administration to the British Labour Party that won the majority in parliament after world war II by defeating Winston Churchill and the conservative party and began to construct the Welfare State that lasted until Margaret Thatcher. The welfare state of the United Kingdom is much closer to the arguments you are making about the Obama administration expanding government.

    If you would like to continue to say that it’s not he politics you are comparing Hitler and Obama to but the seduction of the people, then you’d have an comparison to Obama and the Anti Christ of foretold in the New Testament. This whole seduction of the people only to work against the people conspiracy theory is a tough one. Again it cheapens the debate. Let’s at least agree that even if you do not agree with the Democratic Party and feel that the party’s politics and goals will ruin the country at least concede that the democrats don’t mean to ruin the country. I will say the same of republicans. Having written all of this rubbish, I hope we can now move forward without making comparisons that really do not make sense and add nothing constructive to the discussion.

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  6. The point of comparing President Obama’s economic policy with post WWI Germany is not to compare ideologies of fascism vs. socialism or conservative vs. liberal; rather the fact that $1.2T budget established by President Obama and the Democrat led Congress is setting the stage for higher taxes for all and expansive government control under the guise of “it’s a down payment on our future.”

    The eloquent rendition of historical fact and definition of fascism is accurate. We have an aging generation that will devour the entitlement programs and Congress, with the assistance of President Obama, is spending money and increasing the size and scope of government. If voices do not stand up now and demand real change to take place in Washington the fate of the economy and America will be sealed in higher taxes and larger government or worse bankruptcy.

    To repeat the point, I am not comparing political ideologies; rather simply stating that if concern is not raised now Americans will wake up one day and not recognize the country they went to sleep in.

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  7. Well, let me suggest that the conservatives stop comparing German history to the history of The United States. Even those of us of Judeo Christian heritgage will survive this post without "born again" Christian idealogy making up history...those of us who have not been reborn will persevere. It seems that an author claiming to have achieved Gnosis would know better not to debate history and trivia. I find it ironic that a conservative is Gnostic and am having doubts of the writer's interpretation of the theology and meaning of the truth.

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  8. Lets make it clear, my attainment of Gnosis is not complete but my understanding is more than novice.

    If you disagree with my concepts or assertions, offer alternatives. At least within my blog I offer up ways to change or alternatives.

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