Bernanke to Congress: You Are Going to Have to Cross That Fiscal Valley Yourself

[Chris]

Recent events in Europe, where Greece and other nations with large, unsustainable deficits like the United States are having increasing trouble selling their debt to investors, show that the U.S. is vulnerable to a sudden reversal of fortunes that would force taxpayers to pay higher interest rates on the debt, Mr. Bernanke said.

"It's not something that is 10 years away. It affects the markets currently," he told the House Financial Services Committee. "It is possible that bond markets will become worried about the sustainability [of yearly deficits over $1 trillion], and we may find ourselves facing higher interest rates even today."

Mr. Bernanke for the first time addressed concerns that the impasse in Congress over tough spending cuts and tax increases needed to bring down deficits will eventually force the Fed to accommodate deficits by printing money and buying Treasury bonds — effectively financing the deficit on behalf of Congress and spurring inflation in the process.

Some economists at the International Monetary Fund and elsewhere have advocated this approach, suggesting running moderate inflation rates of 4 percent to 6 percent as a partial solution to the U.S. debt problem. But the move runs the risk of damaging the dollar's reputation and spawning much higher inflation that would be debilitating to the U.S. economy and living standards.

http://reason.com/blog/2010/02/26/bernanke-to-congress-you-are-g

[USA4ME]

... suggesting running moderate inflation rates of 4 percent to 6 percent as a partial solution to the U.S. debt problem.

4% to 6%??  That's going to be child's play compared to what we'll be facing soon, and especially as Dear Leader keeps printing money to hand out under the guise of stimulus and a "jobs bill."  It's the mid-1970's all over again, and it's going to end the same way.  Point being is that if you know what's coming, you can make money off of it; a huge advantage conservatives had over liberals back then, and will have over them this time.

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[The Village Idiot]

4% to 6%??  That's going to be child's play compared to what we'll be facing soon, and especially as Dear Leader keeps printing money to hand out under the guise of stimulus and a "jobs bill."  It's the mid-1970's all over again, and it's going to end the same way.  Point being is that if you know what's coming, you can make money off of it; a huge advantage conservatives had over liberals back then, and will have over them this time.

More like Hugo Chavez or Robert Mugabe than Carter

[Javelin]

More like Hugo Chavez or Robert Mugabe than Carter

I agree, and total economic collapse.  In the 70's much was sparked from an oil embargo, not a banking collapse.  The earlier poster that compared this to the Carter years may find the need to become more of a survivalist than simply a conservative.  Perhaps a conservative survivalist would be a better fitting eh lol.

This is more than an inflation issue or a spending issue at the moment.  Look at the market indicators, this is the collapse of the world currencies.  Reaganomics cannot fix this at this point.  Its going down in flames no matter who is at the helm this time around.  People stood up and spoke out too late and are going to come up a lot more than a dollar short.