Bernanke to Congress: We're Much Closer to Total Destruction Than You Think

[HK in AK]

Well, in rare slip into consciousness, Bernanke appears to be telling the truth.....and the fact that CNBC reported it just gives me a mental mind-f***.

In short, the official estimates members of Congress hear from their budget office are under-estimating our dire economic predicament. If fiscal policy is not brought under control, things will be much, much worse.

full story: http://www.cnbc.com/id/41491193/

[FlintHillBilly]

CNBC would have been the last place I would have expected this to turn up. Turning the radio now to some happy music. I will glady accept the fact that everything is fine, as they tell me it is. Economy is picking up, more jobs added, etc etc etc.

Problem is were in the same situation we have been in for awhile. Deficits keep raising and debt keeps growing. Economy really hasn't picked up. Guess we should spend more to get us out of deeper debt.

Will, QE3 if it comes, be a plug that keeps the sinking ship from sinking?

Anyhow this looks to be published in 2011? You could say its still relevent.

[HK in AK]

That was a year ago and things have not changed...........so are we getting closer to the point of no return.

[Mein Teil]

The Left must be so happy, and so it will begin. Same flag, different country...fairness?

[shermbodius]

Oh my friends, please don't be confused, when the SHTF it will be not be a simple bump in the road. It is unfortunately inevitable.

[Mu-Meson]

Gold and guns it is then!

[Mein Teil]

Gold and guns it is then!

Uhm, no. Some of us just want to live and be left the fuck alone.

[G-AWZT]

Barry and MSNBC say "All is well!"

[SkyUS]

That was a year ago and things have not changed...........so are we getting closer to the point of no return.

I don't see it that way. Call me an optimist but I foresee our fiscal policy to be tightened after we make a full recovery. Biggest bump in the road of our recovery were the European worries about PIGS etc. It seems that EU got its collective **** together for the time being.

I have also learned one thing. MP.net economic and political predictions are always so gloomy that if we all had taken them seriously, all of us would be off this website hiding somewhere in the forest with ****load of ammunition and gold hidden in secret locations waiting for the collapse of the country.

[Mein Teil]

Barry and MSNBC say "All is well!"

They promised they were only gonna stick the head in...a little .

[G-AWZT]

They promised they were only gonna stick the head in...a little .

To a Dem/Leftist, ain't no such thing as "a little".

[HK in AK]

I don't see it that way. Call me an optimist but I foresee our fiscal policy to be tightened after we make a full recovery. Biggest bump in the road of our recovery were the European worries about PIGS etc. It seems that EU got its collective **** together for the time being.

I have also learned one thing. MP.net economic and political predictions are always so gloomy that if we all had taken them seriously, all of us would be off this website hiding somewhere in the forest with ****load of ammunition and gold hidden in secret locations waiting for the collapse of the country.

I hope you are right. With the probability of failure, I am making sure I have other options.

[Kilgor]

Which party is going to to be the one to radically cut the big 4 items of the budget and raise taxes ?

Thats right... no one.

The easiest political solution is to fire up the printing presses and rape through inflation.

Whats really annoying is the partisan finger pointing which just goes around in circles and business continues as usual.

[SuchIsLife]

I hope you are right. With the probability of failure, I am making sure I have other options.

A: What would failure mean?
B: What other options?

[[WDW]Megaraptor]

Sustained high rates of government borrowing would both drain funds away from private investment and increase our debt to foreigners, with adverse long-run effects on U.S. output, incomes, and standards of living. Moreover, diminishing investor confidence that deficits will be brought under control would ultimately lead to sharply rising interest rates on government debt and, potentially, to broader financial turmoil. In a vicious circle, high and rising interest rates would cause debt-service payments on the federal debt to grow even faster, resulting in further increases in the debt-to-GDP ratio and making fiscal adjustment all the more difficult.

This is so obvious to anyone with a basic understanding of debt that I don't know why so many people don't get it.