Bernanke Warns Deficits Threaten U.S. Financial Stability

June 3, 2009 by · Leave a Comment
Filed under: Policy News 

Why is it that we have to go with far to realize in a system where you issue debt to issue money, deficits actually matter.  We have known this for decades, but now some how we have now figured this out.  Obama is going to either cut back his budgets or make serious cuts in other places to make his goals happen.  The other option that I have been looking into is changing the way we “issue” our money.   The days of the private Federal Reserve are numbered and I see the “Greenback” coming back.

News (Bloomberg):

Federal Reserve Chairman Ben S. Bernanke said large U.S. budget deficits threaten financial stability and the government can’t continue indefinitely to borrow at the current rate to finance the shortfall.

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Soaring U.S. Budget Deficit Will Mean Billions More in Bond Sales

April 23, 2009 by · Leave a Comment
Filed under: Currency News 

This is going to get out of control over time unless we really start to reduce government spending or we are going to flood the market with dollars and it will make us have to make some very tough choices in the future which could include and official devaluation of our currency.   Currently the jobs market is the biggest thing dragging down the U.S. economy.  Credit availability is still a huge issue but even if that comes back, I am not sure if we would want that to flow back into the areas of the economy where a large part of the jobs have been lost (Finance, Real Estate and home construction).  

News (Bloomberg):

Millions of lost jobs mean billions in lost tax revenue for the U.S. government, and billions in additional Treasury debt to fund a federal budget deficit that may soar to more than four times last year’s record $454.7 billion.

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