denison
02-25-2010, 10:27 PM
http://theeconomiccollapseblog.com/archives/federal-reserve-chairman-ben-bernanke-warns-congress-that-the-federal-reserve-will-not-print-money-to-pay-for-the-exploding-u-s-national-debt
On Wednesday, Federal Reserve Chairman Ben Bernanke warned Congress that the Federal Reserve does not plan to "print money" to help Congress finance the exploding U.S. national debt. In fact, Bernanke told Congress that the U.S. could soon face a debt crisis as bad as the one in Greece if the U.S. government does not get things in order financially. This represents a fundamental change in policy for the Federal Reserve, because they have been enabling the massive borrowing by the U.S. government over the past couple of years by "buying" the majority of new U.S. government debt that has been issued. But now the fat cats over at the Federal Reserve have apparently changed their minds. Using uncharacteristic bluntness, Bernanke told Congress that the Federal Reserve is "not going to monetize the debt".
So why is the Federal Reserve changing course?
Well, there are a couple of possibilities. One is that the Federal Reserve could legitimately be concerned that the exploding U.S. debt could actually collapse the U.S. economy and ultimately the U.S. government.
You see, the Federal Reserve is a parasite. They make money for their owners by sucking money out of the U.S. government and out of U.S. taxpayers. So, just like any parasite, they must strike a delicate balance. They have to keep feeding off the host without killing off the host completely. If the host dies it could end up killing the parasite. So the Federal Reserve actually needs to try to keep the U.S. economy alive so that it can slowly keep draining it.
In fact, during his remarks to Congress, it certainly sounded like Bernanke honestly desires that the U.S. government will come up with a sustainable financial plan for the future....
On Wednesday, Federal Reserve Chairman Ben Bernanke warned Congress that the Federal Reserve does not plan to "print money" to help Congress finance the exploding U.S. national debt. In fact, Bernanke told Congress that the U.S. could soon face a debt crisis as bad as the one in Greece if the U.S. government does not get things in order financially. This represents a fundamental change in policy for the Federal Reserve, because they have been enabling the massive borrowing by the U.S. government over the past couple of years by "buying" the majority of new U.S. government debt that has been issued. But now the fat cats over at the Federal Reserve have apparently changed their minds. Using uncharacteristic bluntness, Bernanke told Congress that the Federal Reserve is "not going to monetize the debt".
So why is the Federal Reserve changing course?
Well, there are a couple of possibilities. One is that the Federal Reserve could legitimately be concerned that the exploding U.S. debt could actually collapse the U.S. economy and ultimately the U.S. government.
You see, the Federal Reserve is a parasite. They make money for their owners by sucking money out of the U.S. government and out of U.S. taxpayers. So, just like any parasite, they must strike a delicate balance. They have to keep feeding off the host without killing off the host completely. If the host dies it could end up killing the parasite. So the Federal Reserve actually needs to try to keep the U.S. economy alive so that it can slowly keep draining it.
In fact, during his remarks to Congress, it certainly sounded like Bernanke honestly desires that the U.S. government will come up with a sustainable financial plan for the future....