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Bernanke Begs Again For More Debt To Save America

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http://finance.yahoo.com/news/Bernanke-Raise-debt-ceiling-cnnm-3863341379.html?x=0&sec=topStories&pos=4&asset=&ccode=

Federal Reserve chief Ben Bernanke reinforced his call on Thursday for Congress to raise the cap on U.S. borrowing, saying a failure to do so could lead down the same risky path that the failure of Lehman Brothers did.

During a Senate Banking Committeee hearing, Bernanke reiterated catastrophic consequences should Congress either fail to raise the limit on borrowing or edge too close to that limit.

"The worst outcome would be one in which the financial system would be again destabilized, which we saw in Lehman, which would have extremely dire consequences for the rest of the economy," Bernanke said, referring to the period following the failure of the Wall Street bank Lehman Brothers at the height of the financial crisis in 2008.

Bernanke also said that "using the debt limit as a bargaining chip is quite risky," reiterating a worry he expressed in a February press conference.

Whereas perpetually increasing the debt limit has no risk....

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Time to let the bankers swing.

Bankrupt the banks, arrest all bankers, publicly execute the worst offenders and flog the rest. Then seize all their assets.

Finally erase all bank debts, protect all deposits and then shut down all the banks, and feed the bankers corpses to the pigs.

That should do it.

Edited by Mikhail Liebenstein

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This is nonsense from Bernanke.

The debt ceiling is to cover government expenditures...borrowing more and raising the ceiling increases the debt and the interest on that debt, whilst no cuts need be made.

holding the ceiling ,means that interest can still be paid, while worthwhile cuts are started.

Bernanke is a liar and a thief.

If the banks are soleley reliant on the government borrowing more and more, then that is proof that the banking system is already into deep ponzi mode.

Its not as if current debt is to be defaulted...quite why the system would go unstable if Government stopped borrowing more and more is beyond the realms of belief...Its the same as the gangster saying that unless you pay me £1000 a week, your business will burn down of its own accord.

Edited by Bloo Loo

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Time to let the bankers swing.

Bankrupt the banks, arrest all bankers, publicly execute the worst offenders and flog the rest. Then seize all their assets.

Finally erase all bank debts, protect all deposits and then shut down all the banks, and feed the bankers corpses to the pigs.

That should do it.

OK well if we're going to have a debt jubillee I better get out there and get me some more debts.

Ferrari anyone?

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That is the great thing amount the world now.

In most situations the problem is never the solution.

In our current monetary system, more debt is the only solution, unless you change the system.

It's just dumb.

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Guest spp

More debt to solve a debt problem. Yay!

Dangerous, dangerous morons.

U.S = Junkie

FED = The dealer

What can go wrong :ph34r:

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I don't mind this Bernanke fellow saying all this stuff per se, it's an opinion and he's entitled to one just as I am.

What hacks me off is the complete lack of any sort of qualification of his position. He needs to say something like:

"We're about 46 quadrillion dollars in the red, along with most of the Western world, Japan, and some banana republics, and no one has ever encountered a mess like this before in 4500 years of money. Accepted economic policy has been pretty much completely discredited, and we're completely flummoxed. But, er, well, this British chap called Cains, or Keans, or something, once suggested spending a lot during rough patches, and that sounds like it might be helpful, so we're going to give it a stab. Either your great-grandchildren will end up for paying for all this stimulus, or we're heading the way of Weimar. If you don't have automatic weapons get some now, just as a backup."

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Time to let the bankers swing.

Bankrupt the banks, arrest all bankers, publicly execute the worst offenders and flog the rest. Then seize all their assets.

Finally erase all bank debts, protect all deposits and then shut down all the banks, and feed the bankers corpses to the pigs.

That should do it.

Yeh, thats right, O wait a minute for every debtor pound there is a creditor pound, FU if you think I should lose out because others have borrowed recklessly be it by loss of my savings or hyperinflation.

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I don't mind this Bernanke fellow saying all this stuff per se, it's an opinion and he's entitled to one just as I am.

What hacks me off is the complete lack of any sort of qualification of his position. He needs to say something like:

"We're about 46 quadrillion dollars in the red, along with most of the Western world, Japan, and some banana republics, and no one has ever encountered a mess like this before in 4500 years of money. Accepted economic policy has been pretty much completely discredited, and we're completely flummoxed. But, er, well, this British chap called Cains, or Keans, or something, once suggested spending a lot during rough patches, and that sounds like it might be helpful, so we're going to give it a stab. Either your great-grandchildren will end up for paying for all this stimulus, or we're heading the way of Weimar. If you don't have automatic weapons get some now, just as a backup."

Brilliant! :lol:

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Yeh, thats right, O wait a minute for every debtor pound there is a creditor pound, FU if you think I should lose out because others have borrowed recklessly be it by loss of my savings or hyperinflation.

That's what I thought, so I took most of my money out of the bank and bought gold and silver, cos bank collapse, hyperinflation, or economic and currency collapse (or a combination of these) is what is on the cards.

Edited by General Congreve

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Basically hes saying that Wall St's overdraft needs to be unlimited but Main St has to have a limit. What's incredible is that there must be every chance that the Dumbp Yanks will get conned again. Having said that they paid the Dumbo Chinese with monopoly money :lol:

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Yeh, thats right, O wait a minute for every debtor pound there is a creditor pound, FU if you think I should lose out because others have borrowed recklessly be it by loss of my savings or hyperinflation.

You're wasting your time, no matter how many times I point this out, NO-ONE LISTENS.

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You're wasting your time, no matter how many times I point this out, NO-ONE LISTENS.

thats because it is wrong.

for evey £1 in issuance, there is many times that in debt.

see....the money multiplier.

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Yeh, thats right, O wait a minute for every debtor pound there is a creditor pound, FU if you think I should lose out because others have borrowed recklessly be it by loss of my savings or hyperinflation.

I know it would sting, and it would be pointless unless there was a complete transformation in how money and the money markets work subsequently.

I dunno - I'm one of the ones who has no debts, only savings, so I share your pain. Certainly, if the outcome was to leave a load of borrowers with valuable assets that they never paid for, and the same systems in place, then I'd find that completely unacceptable.

I'd be relatively happy to let them keep any depreciating tat, but have, for instance, unpaid-for housing seized by the state and used appropriately, clearly and transparently.

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Yeh, thats right, O wait a minute for every debtor pound there is a creditor pound, FU if you think I should lose out because others have borrowed recklessly be it by loss of my savings or hyperinflation.

All you have are IOU's.

You are paid interest because there is a chance you won't get paid back.

You took the interest, now you won't get paid back.

If you and people like you hadn't given the banks your cash willy nilly, none of this would have happened.

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thats because it is wrong.

for evey £1 in issuance, there is many times that in debt.

see....the money multiplier.

...which makes up many times that £1 in issuance as credit in savings accounts.

If the amount of credit didn't match debt, how would the debt have been spent in the first place?

EDIT: reworded

Edited by Traktion

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All you have are IOU's.

You are paid interest because there is a chance you won't get paid back.

You took the interest, now you won't get paid back.

If you and people like you hadn't given the banks your cash willy nilly, none of this would have happened.

Injin, are you feeling ok? :blink:

I thought you said it was all just fraud and the people weren't to blame? They thought their savings were being kept it little locked boxes, while trying not to think about where borrowed money came from. Bless their cotton socks and all that!

...or was this just an ironic post? :unsure:

edit: grammar

Edited by Traktion

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Totally misleading thread title IRRO.

Not raising the limit whilst borrowing up to the limit carries a risk of destabilising the markets.

That's blindingly obvious and BB is clearly correct.

He's also said many times that Congress needs to resolve the deficit spending. Again perfectly reasonable.

His point is about risk and dislocation - and about the trade deficit. Turning every mention of the word 'debt' into a Zero Hedge nutter Austrian gold type thread is pointless. Where's the debate? You just end up with all the zero hedge nutter bug Austrians rah rahing as they lose 40% of their money in a week.

Site deserves better...................

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Time to let the bankers swing.

Bankrupt the banks, arrest all bankers, publicly execute the worst offenders and flog the rest. Then seize all their assets.

Finally erase all bank debts, protect all deposits and then shut down all the banks, and feed the bankers corpses to the pigs.

That should do it.

From the Anglo Saxon Chronicle....

A.D. 1125.

In this year sent the King Henry, before Christmas, from Normandy to England, and bade that all the mint-men that were in England should be mutilated in their limbs; that was, that they should lose each of them the right hand, and their testicles beneath. This was because the man that had a pound could not lay out a penny at a market. And the Bishop Roger of Salisbury sent over all England, and bade them all that they should come to Winchester at Christmas. When they came thither, then were they taken one by one, and deprived each of the right hand and the testicles beneath. All this was done within the twelfth-night. And that was all in perfect justice, because that they had undone all the land with the great quantity of base coin that they all bought.

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...which makes up many times that £1 in issuance as credit in savings accounts.

If the amount of credit didn't match debt, how would the debt have been spent in the first place?

EDIT: reworded

you have to remember that the credit, is just that - credit. your savings are not there sitting in a bank. it is the banks iou to you.

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Injin, are you feeling ok? :blink:

I thought you said it was all just fraud and the people weren't to blame? They thought their savings were being kept it little locked boxes, while trying not to think about where borrowed money came from. Bless their cotton socks and all that!

...or was this just an ironic post? :unsure:

edit: grammar

It's fraud on the borrowers.

The savers are just clueless greedy morons, for the most part.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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