Fed chairman calls for US to cut deficit

[CHIMO]

Source: guardian.co.uk

Ben Bernanke, the Federal Reserve chairman, today called for the United States to whittle down its record-high budget deficits and for countries like China to get their consumers to spend more, moves that would help combat skewed global trade and investment flows that contributed to the financial crisis.

Bernanke's remarks to a Fed conference in Santa Barbara, California comes just days after the federal government on Friday reported a $1.42tn deficit for 2009 budget year that ended on 30 September. The previous year's deficit was $459bn.

The Fed chief's comments were aimed at reducing global imbalances, and echo pledges made by leaders of the Group of 20 nations at their summit in Pittsburgh last month.

"As the global economy recovers and trade volumes rebound, however, global imbalances my reassert themselves," Bernanke warned. For the United States' part, "the most effective way" to boost national savings in this country "is by establishing a sustainable fiscal trajectory, anchored by a clear commitment to substantially reduce federal deficits over time," Bernanke said. He didn't suggest ways to do so.



Read more: http://www.guardian.co.uk/business/2009/oct/19/ben-bernanke-budget-deficit

[louis-t]

1. All bluster, no ideas.

Typical repug. Hey Ben, maybe we should have a spending freeze for 3 years like Hoover did. Cuz, y'know, it worked out so well in the '30's.

[natrat]

3. after distributing trillions, a good part of which is unaccountable

[ShockediSay]

16. Why not cut the subsidy for Lobby Lawyers

{tax deductible lobbying expenses}

[msongs]

2. even Bernanke thinks ending our 3 wars is a good financial idea nt

[DJ13]

4. He's listening to his Chinese buddies, but a man who claims to be

.... a scholar of the Great Depression should see the similarities and recognize that same line of thought in the mid 30's threw us right back into the depression.

Either he doesnt care, he's just interested in mollifying the Chinese, or he's not the scholar he's made out to be.

[depakid]

5. Three policies Ben would get behind if he were serious

1. Raising the highest marginal rates & limiting capital gains for the wealthiest;

2. A small financial transactions tax, as in the UK;

3. A Tobin tax on currency exchange.

[Festivito]

6. Hm. Repubwicans in power? No. Democwats? Yes. .. Lower deficit!

I wonder if he has a flowchart that helps him to figure this out.

[Ian David]

7. You mean the guy who's been wrong about everything? n/t

[FreakinDJ]

8. Oh my, - He said "combat skewed global trade"

Where are all the "Free Traders" to tell us these are jobs Americans won't do

[olddad56]

13. I think that with Ben and the FED we are really 'skewed'.

[No Elephants]

19. LOL!

[defendandprotect]

9. Yeah . . .let's freeze it just before we bailed out capitalism, again -- !!!

How come Bush/Repugs bankrupting the Treasury never bothers the FED . . .

but any taxpayer money that could possibly be spent on social needs drives

them nuts?

[Fresh_Start]

10. Bernanke, get the money back from the banks

please get a good return on the peoples money while you do it.

[no_hypocrisy]

11. Bernanke has no sense of irony.

[bemildred]

12. Yeah, really.

"George W. Bush calls for steep defense cuts, say ousting Saddam was all a silly mistake."

[Democrats_win]

14. We need to start saving now for Jeb Bush's wars.

[gratuitous]

15. Maybe if we quit buying toxic assets?

And, you know, let financial institutions absorb the punishment for making unwise investments? Let that old market magic work.

[optimator]

17. was the wall street bailout deficit neutral?

didnt think so shit head bernanke. now shut the fuck up and turn yourself in to prison you fucking slime.

[Demeter]

18. Bernanke Has a Lot of Nerve--Just Not Enough to Say This In American Press

Because he'd be crucified, and rightly so.

[No Elephants]

20. Why are Republicans still in charge of our money, our wars, our health care, etc?

What are the Democrats in charge of anymore? Attacking Fox News?