Ben Bernanke: Codependent in chief


Federal Reserve Chairman Ben Bernanke called on Congress on Monday to adopt tougher budget rules even as the nation’s top central banker warned against taking deficit-cutting action too soon.

Still, Bernanke also warned against tightening too quickly and reportedly said more asset purchases by the Federal Reserve could help the economy.

The government’s addiction to debt and deficit spending is being enabled by the Federal Reserve which is buying its debt with money that is created ex nihilo.  So if Bernanke wanted, he could stop the addiction.  It’s like the wife who responds to her alcoholic husband who has asked her to bring him a drink, “Dear–you really must stop drinking so much … Would you like that on the rocks?”

Meanwhile, gold has climbed to $1330.

USA debt 13 trillion

Congratulations to Barack Obama and the Congress led by the Democratic party.  You have now increased USA debt to 13 trillion (by this coming Tuesday).  That’s $41,900 per man, woman, and child.  That is higher than the per capita income.  Since the democrats took control of Congress after 2006 election, the US National debt has increased from 8.67 trillion to 13 trillion.  That is a 50% increase, or $14,000 per capita.  Well, debt was a bad thing at 8.67 trillion.  Why?  Because US government debt is bad debt. At the household level, it is equivalent to consumer debt–debt that is spent and afterward you have nothing to show for it nor any income coming in as a result–all you have is increasing costs due to interest payments.  It is stupid debt.