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Yesterday, Federal Reserve Chairman Ben Bernanke delivered a speech before the the Annual Meeting of the Rhode Island Public Expenditure Council in Providence, Rhode Island. In the speech, he warned about the current state of the government finances. His conclusion, the situation is dire and "unsustainable".
It is remarkable that mainstream media has given this speech no coverage. I repeat, the central banker of the United States says in his own words:
Let me return to the issue of longer-term fiscal sustainability. As I have discussed, projections by the CBO and others show future budget deficits and debts rising indefinitely, and at increasing rates. To be sure, projections are to some degree only hypothetical exercises. Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit. Herbert Stein, a wise economist, once said, "If something cannot go on forever, it will stop."
This is as close as you are ever going to see a central banker admit that his country's financial situation is so dire that it could breakup at any time.
Wow! Really? Unsustainable? Who would have thought, hmm? I thought he said before things are OK and there won’t be any depressions. What happened, Ben? Can’t lie anymore? Nightmares at night or what? I am surprised some dorks even showed up to listen to his lies.
ReplyDeleteWhat do you mean we cant keep spending more than we bring in. Who would have thought
ReplyDeleteThat's amazing, considering this guy up to even yesterday was still in denial that we were in a recession, much less a depression, and liked to pretend everything was growing and rosy and there was no unemployment problem either.
ReplyDeleteMaybe we are very much in the final phase.
In other news, my silver value has grown tremendously just today. I don't have much, but even this small amount is nice. I wasn't planning on growing rich like this, but now if we ever do recover this will be how I retire.
Sounds likes Ben's helicopter is sputtering and running out of gas. Maybe he can throw out enough fiat paper money to cushion his crash landing.
ReplyDeleteHere we have a front-man for the elite, covering his own ass and the asses of his handlers, while faking concern and staying the course at the same time. Itz not printing money, itz Quantitative Easing! WHEE! And the cud-chewing masses let him get away with it.
ReplyDeleteWho pushed the bullshit button on this one? Must have been Larry Summers or Timmy.
ReplyDeleteFunny how he talks about the government financial crisis but neglects to mention Wall Street, the banks, and the mortgage companies. They are the main reasons we are in a depression.
ReplyDeleteThose three things started the real estate bubble, primarily using fraud (and that's according to the FBI and the Dept. of Justice); that's how they got rich while suckers got poor.
The federal gov't hasn't done anything about it yet, but the states are finally taking the banksters to court. Many foreclosures are being halted because the banks can't prove who actually holds the mortgage. Check the Florida newspapers.
Just as experts like Celente have been saying for ages...
ReplyDeleteMaybe the yanks should go on one last spending spree - blow all they have left and party party party, as for them there won't be a tomorrow..
3rd world America, here it comes.
someone shut the fan off before it splats shit all over.
ReplyDeleteAs well of the usual criminality of the privately owned central bankers in creating money out of fresh air for a banksters fractional reserve debt system and even profiting from renting the monopoly paper at interest, as public debts to government , the collapse of the great dollar hegemony and Ponzi economy in 2008 necessarily led to a financial Coup over Treasury in order to seize control of future tax revenues and unrestricted access to the printing presses.
ReplyDeleteThis financial Coup was Aided by continuing bi-partisan support from their paid for political agents of both same- same political parties.
The Printing press for federal reserve notes and Treasury bond issuance to create public debt was set on fast speed .
Trillions of dollars in deficit spending are required yearly in order to finance government and continual bailouts.
Past losses in the finance sector were socialized and credit for new capital was supplied to them at zero interest rates. Even so ,the result of the ongoing need to pay interest and dividends , on past and the ongoing war debts bonds, a big part of the Treasury bond markets ,has proved to much for America.
Even more Quantative easing is threatened -counterfeiting money – that has no economic value or validity in reality , even in a fractional reserve banking economy it cannot be all loaned and the multiplier effect and velocity of money circulating in the economy is not functioning very well at all.
The result of all this is that the chief money printer for the Corporate State ,the criminal Ponzi enterprise called America is openly admitting it is …
UNSUSTAINABLE…
Goodnight Ponzi !
Goodnight fiat paper dollar hegemony!
America got out of the last depression by turning to a war economy and war to destroy its industrial competitors and to achieve a later economic recovery.
That will not work this time in the missile age of mutual assured destruction against countries like China or Russia.
And many countries in the Third world already seek real economic development in mutual trade precisely by abandoning the dollar hegemony systems dictates.
Besides America is now a de-industrialized services based economy, the commodity production industries of its profitable multinational companies own, now exist in the third world in countries like China, on which America it is now a dependency for much of its everyday consumers commodity supply.
Its old public sector infrastructure is crumbling in decay and hardly suitable for waging efficient protracted wars .
Welcome to the Third world America.
You already have the third world like run down infrastructure in place that you deserve to match your economic status.
“Unsustainable” is just another ‘Fedspeak” banksters word for American insolvency.
got gold yet>
ReplyDeleteIn Nov '02, Bernanke signaled their intent...
ReplyDeleteLike gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
Now he is telling us what it coming, without a doubt.
America runs on foreign credit supply,But Bernanke warns the world here ,that either the US $ value will be inflated away ,or the US And FED will default on its debts.
ReplyDeleteHe is saying ,in effect,"WARNING WARNING" , do not invest any more in an insolvant america.
We are being forced to turn even more to the inexaustable printing press .
We are now at our limit and wits end.
Americas own central banker has here given up on America as beyond help, a basket case!
Paper can only go so far in papering over debts!
'projections by the CBO and others show future budget deficits and debts rising indefinitely,.."
(to inrfinity??)
'Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit...."
A "Warning' ,"Warning" to his international class brothers :
"Get your money out now before the US ship self destructs !"
This is your Captain Benanke speaking,
Counting down now!
"Warning Warning ...EEErp -EEErp- EEErp self destuct at 10....
EEErp -EEErp - EEErp self destuct at 9...
EEErp EEErp Warning .warning...
EEErp EEErp..
10.53
ReplyDeletewhat are you some sort of an Anti-american puritan nutter?
A paid up member of the Taliban?
Complaining and assuming a superior right to critisism by disguising Yourself as a 'taxpayer"
That is all simply the end result of the historical developement of the American way!
Americans are the greatest people on earth and deserve your full respect not sneers .
All americans should love their country and its individualist people exspresing their right to an American cultural personality ,the rights to liberate their minds with mind altering drugs and get on prescriptions for depression.
Lifesyles as learned in school ,TV reality shows the holywood movies and family life.
The whole world (including the Taliban)is jelouse of these american lifestyles and some want to "destroy America" just to prevent America for exporting these freedoms and great sexual lifestyles at the point of a dollar and a gun.
I think 10:53 has been watching a little too much "reality" television. A majority of communities are now meth villages? No, unfortunately that is not the case; if it were, I could be shopping at the mall for bathroom items and pick up a nice score and be home shooting up before lunch time. That's why I resort to Xanax and Oxycotin instead chased by a beer and shot of whiskey. Who has time for scouring for illegal drugs? I've got the kids to pick up and the episodes of Golden Girls to watch before hubby gets home from the bowling league and wants me to polish off his balls for him. Dog is okay in my book. But let's get one thing straight: this cat is constantly high on meth every time he goes out on the streets to bring someone in for dealing or using. His god is a metaphor for drugs. This white knight, on black SUV chariot of steel, is spreading drug attachment quicker than you can say forest fire. Prison breeds criminality.
ReplyDeleteYou are being played by politicians. The banks, mortgage companies and Wall Street did not cause the problem. In 1999 congress mandated that Fannie Mae and Freddie Mac mac these bad loans and they also pressured banks to do the same. This bubble was 100% the fault of Barney Frank and Chris Dodd. Use your commone sense! Wall Street doesn't even make mortgage loans!
ReplyDelete7:30 Wall street BUYS all the mortgage loans.
ReplyDelete7:30 Wall street buys the orgininations from the (now zombie) banks and then securitizes them...then levers them for good measure(10-100 to 1)...all the while calling them AAA paper,Then they than sell them to thier best customers, when they know it is shit! Sheer FRAUD!
ReplyDeleteUgh the people are still so stupid and misinformed. Banks happily steered people with great credit into these sub-prime loans because they make so much money off of it.
ReplyDeleteBanks generally don't even hold these loans. They sell them off to somebody else, and then that person will sell too. Wall Street buys and sells these loans like water. They then add on a million fees and change terms, then go back to sticking it to the buyer, who they try to morally force into the agreement that they themselves have changed dozens of times, and for which they generally haven't adhered to legislation on (TILA and a few other federal laws requiring reporting and consumer protection).
Generally you can't even sue under the federal statutes because they don't have a provision for it, only the Attorney General can usually bring a case for you, but why would they? So the statutes all have zero bite and are unenforceable. So essentially Wall Street and these Mortgage companies and banks just laugh it up while manipulating the morons who still support them and blame everyone else.
Even now, unbelievable. So many people are so ignorant, unwilling to educate themselves, but adamant in protecting the banks and corporations that are killing our country.
Of course Wall Street buys the mortgage loans! DUH! What do you think Wall street does? It buys and sells investments. As for the mortgages being "shit" or a fraud. You remain clueless. All mortgages with less then 20% downpayment are required to have mortgage insurance which insures the loan to the lender or anyone who buys the paper. These loans were 100% insured, the gold standard. What happened was that the rates for this insurance were too low because no one ever thought a million or two million mortgages could default at once. That insurance rate will have to go up in the future. But the government was the insurer of last resort because the government implemented mortgage insurance and created it such that they were the backup for the plan.
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