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Loud and clear message from the Chairman of the Federal Reserve... the longer we wait to address spending and deficits the harder it will be.

Source: http://imarketnews.com/node/11773

Fed Chairman wrote:
A credible plan for fiscal sustainability could yield substantial near-term benefits in terms of lower long-term interest rates and increased consumer and business confidence. Timely attention to these issues is important, not only for maintaining credibility, but because budgetary changes are less likely to create hardship or dislocations when the individuals affected are given adequate time to plan and adjust. In other words, addressing the country's fiscal problems will require difficult choices, but postponing them will only make them more difficult.

Under some projections the Federal Debt will be over 100% of GDP by 2020.

Stop spending what we don't have and plan wisely to do with what we have? Sounds too much like common sense to me...

Federal Reserve is part of the problem not the solution.

America will not be a free society until its economy is in the hands of its representatives. Democracy is based on more than free ballots, if your currency is not controlled by an accountable national bank you are in danger of being reduced to servitude at any point of your society where your currency has influence, which is pretty much everywhere.

To be fair, I don't think Bernanke is saying that the Federal Reserve should be doing anything in this instance.

It's nice to see the fed chairman say what everyone else has been talking about for two years.


Automatically Appended Next Post:

Orlanth wrote:Federal Reserve is part of the problem not the solution.

America will not be a free society until its economy is in the hands of its representatives. Democracy is based on more than free ballots, if your currency is not controlled by an accountable national bank you are in danger of being reduced to servitude at any point of your society where your currency has influence, which is pretty much everywhere.

You just stated that the reserve was a part of the problem, but then instead of explaining why you ranted about freedom and servitude. Try again.

ShumaGorath wrote:It's nice to see the fed chairman say what everyone else has been talking about for two years.

Actually he's been saying that for some time.

Orkeosaurus wrote:To be fair, I don't think Bernanke is saying that the Federal Reserve should be doing anything in this instance.

Fair enough. I guess the point is that this guy is supposed to be pretty good with money, and he says we spend too much and need to get the budget under control.

Not like some talking head or radio show host is saying it (though they have been saying it for years). Now it's more than just crazy Right winger tea party types that are concerned about the budget, spending and deficit.

Let the progressive teeth gnashing, nay-saying and hand wringing commence.

Frazzled wrote:

ShumaGorath wrote:It's nice to see the fed chairman say what everyone else has been talking about for two years.

Actually he's been saying that for some time.

True. But the beard is dumb.

ShumaGorath wrote:

Frazzled wrote:

ShumaGorath wrote:It's nice to see the fed chairman say what everyone else has been talking about for two years.

Actually he's been saying that for some time.

True. But the beard is dumb.

+1

The Green Git wrote:

Orkeosaurus wrote:To be fair, I don't think Bernanke is saying that the Federal Reserve should be doing anything in this instance.

Fair enough. I guess the point is that this guy is supposed to be pretty good with money, and he says we spend too much and need to get the budget under control.

Not like some talking head or radio show host is saying it (though they have been saying it for years). Now it's more than just crazy Right winger tea party types that are concerned about the budget, spending and deficit.

Let the progressive teeth gnashing, nay-saying and hand wringing commence.

Lets not bring the tea parties into this too. At least Bernanke can spell economics and doesn't cry himself to sleep every night as hitlerbama brings us into a socialist tzarocracy.

The Green Git wrote:Let the progressive teeth gnashing, nay-saying and hand wringing commence.

Spend less, regulate intelligently and efficiently. My two cents.

ShumaGorath wrote:

The Green Git wrote:

Orkeosaurus wrote:To be fair, I don't think Bernanke is saying that the Federal Reserve should be doing anything in this instance.

Fair enough. I guess the point is that this guy is supposed to be pretty good with money, and he says we spend too much and need to get the budget under control.

Not like some talking head or radio show host is saying it (though they have been saying it for years). Now it's more than just crazy Right winger tea party types that are concerned about the budget, spending and deficit.

Let the progressive teeth gnashing, nay-saying and hand wringing commence.

Lets not bring the tea parties into this too. At least Bernanke can spell economics and doesn't cry himself to sleep every night as hitlerbama brings us into a socialist tzarocracy.

Shuma got to say Tzarocracy. Today is a good day.

Damn you Frazz... stop quoting the bet wetters. I'm trying to quit.

ShumaGorath wrote:It's nice to see the fed chairman say what everyone else has been talking about for two years.


Automatically Appended Next Post:

Orlanth wrote:Federal Reserve is part of the problem not the solution.

America will not be a free society until its economy is in the hands of its representatives. Democracy is based on more than free ballots, if your currency is not controlled by an accountable national bank you are in danger of being reduced to servitude at any point of your society where your currency has influence, which is pretty much everywhere.

You just stated that the reserve was a part of the problem, but then instead of explaining why you ranted about freedom and servitude. Try again.

The Federal Reserve sounds like a federal institution but it is not, it uses the word Federal as a private name. It's Feddy's Reserve Bank and its a private company.

The decision as to how many greenbacks to print is not one the US government makes. They have to ask a private company with near executive power. Every time the Federal Reserve prints more than it recycles it devalues all other stocks of USD, when it does so is up to the Federal Reserve not the President or Congress or any state official.

Every other country in the western world with its own currency has a currency production service that is under direct government control, as do nearly all developing countries, while developing countries might outsource the actual printing to a trusted mint the amount to be printed, denominations and when is under their governmental control.

Nah its way too small.

The Federal Reserve sounds like a federal institution but it is not, it uses the word Federal as a private name. It's Feddy's Reserve Bank and its a private company.

It's a private "company" run by federally appointed officials. It's that way by design to avoid partisan politics and the weaknesses inherent to democratic institutions.

The decision as to how many greenbacks to print is not one the US government makes. They have to ask a private company with near executive power. Every time the Federal Reserve prints more than it recycles it devalues all other stocks of USD, when it does so is up to the Federal Reserve not the President or Congress or any state official

Yes. It's that way by design. It's meant to be a rock in a sea of politics.

Every other country in the western world with its own currency has a currency production service that is under direct government control, as do nearly all developing countries, while developing countries might outsource the actual printing to a trusted mint the amount to be printed, denominations and when is under their governmental control.

Hows that working out for greece, spain, italy, taiwan, north korea, or japan (or a dozen other south american, asian, or african countries)? The federal reserve is closely monitored and controlled by the government. It's a separate institution and benefits greatly from that status, modern partisan politics would tear the reserve and this countries financial status to pieces if it had to stand before the populace. I could just as easily say that the BBC makes you slaves to your government, but impartiality and independence in government run "companies" is often times the best way to do things.

Also to be entirely honest here, this is a faux issue. The reserve doesn't make us financially unsound any more than any of Europe's financial institutions (who are going to bankrupt just as fast as we are and for the exact same reasons). It doesn't matter where the money comes from so long as it's parsed out appropriately, and thats far from the cause of modern western financial issues.

No banks don't stand before the populace, in fact in some ways they should with regard to greed and bonuses.

National Banks outside the US are neither private nor elected, Bank of England has some independence but also has accountability. The Federal reserve might have appointees but it also has owners and shareholders and that means there is additional room for powerbrokering.

Sure its a rock in the sea of politics because banking control is a long term principle and does not look healthy.

Sure point to nations in recession, the US is in little better position than many of them. Though its a given you are still better off than African and South American economies and as you so astutely pointed out North Korea too. Though dont congratulate the Federal resserve too quickly even Gordon Brown can manage that.

Orlanth wrote:No banks don't stand before the populace, in fact in some ways they should with regard to greed and bonuses.

National Banks outside the US are neither private nor elected, Bank of England has some independence but also has accountability. The Federal reserve might have appointees but it also has owners and shareholders and that means there is additional room for powerbrokering.

Sure its a rock in the sea of politics because banking control is a long term principle and does not look healthy.

Sure point to nations in recession, the US is in little better position than many of them. Though its a given you are still better off than African and South American economies and as you so astutely pointed out North Korea too. Though dont congratulate the Federal resserve too quickly even Gordon Brown can manage that.

Isn't the u.s. recovering faster than europe right now? Also aren't there several european countries with comparable levels of debt (The UK among them)? Honestly, I fail to see how the fed has anything to do with any of this. We had the fed when we were demolishing you (as in all of the european continent) economically for 50 years too. Was it so terrible then? This is just a bizarre strawman that pulls the conversation from the actual roots of current western economic sustainability issues.

ShumaGorath wrote:

Isn't the u.s. recovering faster than europe right now? Also aren't there several european countries with comparable levels of debt (The UK among them)?

Two issues here.

Is the US recovering faster. No its not. its recovering faster than the UK and Greece because they are government by ultra corrupt parties who ran the country into unprecedented debt just to appear to be all things, the party of low taxation and high public spending. Blair and Brown took a very healthy UK economy and given us a debt similar one you would find for a South American junta. This was done because the UK electorate has the attention span and memory of a goldfish and wont notice anything until it hits their own pocket. Brown has defered all Uk interest until 2012, at extra cost, simply to give himself the illusion of competence.
Be thankful you never had such a sordid self serving traitor running your country. They reckon it will take fifty years to pay back the debt caused by squandering to make Brown look the wonder chancellor of the early part of this decade.
Greece hasn't squandered as much as New Labour, but didn't have the resources to squander, civic bankruptcy is now a possibility for Greece.

So to compare the US with Europe compare the US with sanely run economies, like the French and Germans. they are recovering very quickly. they have problems and there are grumblings but such is always the case with recovery as everyone wants to be the first up the ladder.

ShumaGorath wrote:
Honestly, I fail to see how the fed has anything to do with any of this.

It isn't my concerns with the Fed are addressed elsewhere, regarding long term accountability. Having a Federal Reserve style organisation for the Bank of England would not have stopped the gross financial irresponsibility of a government like New Labour.

ShumaGorath wrote:
We had the fed when we were demolishing you (as in all of the european continent) economically for 50 years too. Was it so terrible then? This is just a bizarre strawman that pulls the conversation from the actual roots of current western economic sustainability issues.

Nope thats entirely due to the resource base of the US, and not the quality of banking per se. Also I must assume you noticed Europe was hit somewhat harder by World War 2 and the Cold War than the US was.
Also European Federalists predict that a fully unified European superstate can have an economy approximately four times the size of the USA but a broadly similar sized population.

Of course economists are now predicting the demise of the Euro brought on by Greece and the other fun countries, so arguments of that nature are at best irrelevant. (how did this get into a US vs. Euro anyway?)

In actuality the Fed is effectively a government entity and central bank. It has the powers and responsbilities therein, as well as regulatory responsibilities over banks and certain financial institutions, and of course Hot Pockets.