Worthy Christian News » US News » US Economy: Bernanke: Failure to Make Debt Deal Would Be 'Calamity'


US Economy: Bernanke: Failure to Make Debt Deal Would Be 'Calamity'

Wednesday, July 13, 2011 | Tag Cloud

american economyWASHINGTON, D.C. (Worthy News)-- U.S. Federal Reserve Chairman Ben Bernanke says the economy will face "calamity" if congressional Republicans and President Obama cannot reach an agreement to raise the legal limit on borrowing.

He told Congress refusing to increase Washington's debt ceiling is like having a spending spree with a credit card and then refusing to pay the bill.

Bernanke said without a deal, the nation would eventually default and be forced to cut payments to pensioners, soldiers and others, damaging confidence, hurting jobs, and perhaps throwing the nation back into a severe recession.

Bernanke was reporting to a congressional committee on the state of the U.S. economy. He said U.S. economic growth will pick up in the second half of the year as high prices for energy and fuel ease.

He said growth will probably rise to an annual rate of around 2.8 percent, which is faster than the first few months of this year, but slower than the last quarter of 2010.

Bernanke indicated that the Fed is prepared to take additional steps to stimulate the economy if the current lull in growth continues.

Fed experts say the U.S. unemployment rate will fall from its current 9.2 percent, but not as quickly as previous predictions.

Reprinted with permission from VOA News.

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Worthy Christian News » US News » US Economy: Bernanke: Failure to Make Debt Deal Would Be 'Calamity'

2 thoughts on “US Economy: Bernanke: Failure to Make Debt Deal Would Be 'Calamity'

  1. ...when someone is in financial trouble and they decide to go to an financial counselor, they ask them, "What should I do?"  How many consultants do you suppose would say, "You need to get more credit cards, and spend more than you make and then everything will be fine!" 

  2. "... He told Congress refusing to increase Washington’s debt ceiling is like
    having a spending spree with a credit card and then refusing to pay the
    bill."

    It's nothing of the sort.  It's like having a single credit card and the issuer finally refusing to raise the credit limit further.   It does not mean payments are not being made on the card's debt, only that it can no longer increase.

    Bernanke has no understanding of either finance or economics.

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Worthy Christian News » US News » US Economy: Bernanke: Failure to Make Debt Deal Would Be 'Calamity'