http://goldsilver.com/news/volcker-warns-of-danger-from-u-s-deficits/ WASHINGTON (Reuters) Former Federal Reserve Chairman Paul Volcker warned on Friday that trillion-dollar deficits posed a threat to the stability of the U.S. economy and the dollar, and said he is frustrated by the gridlock in Washington. Speaking before the World Affairs Council of Oregon, Volcker said that "prolonging trillion dollar deficits can't be a reality" and that the United States is on course to have its public debt exceed the size of its gross domestic product. "One way or another, we do have to return to a balanced budget," he said in prepared remarks. Volcker's speech came on the same day that the Congressional Budget Office said the U.S. budget deficit had totaled $871 billion for the first seven months of the year, which is significantly above the previous year's pace. On Thursday, Vice President Joe Biden led a bipartisan meeting in an effort to strike a deal with Republicans on cutting the growing federal deficit and averting a default. They face an August 2 deadline to raise the country's $14.3 trillion debt limit. Volcker, who stepped down early this year as the chairman of President Barack Obama's Economic Recovery Advisory Board, said he was concerned about how the U.S. consumes and borrows "to the point that China, Japan and other foreign countries hold more than 5 trillion dollars of U.S. government obligations."
ohh ohh ohh pick me, I know 1 way! Print 14.3 trillion dollars... Did I win? What do you mean someone came up with the answer before me! Ben who?
"I will put the point bluntly," he said. "It is simply unrealistic and irresponsible to believe budgetary balance can be achieved without higher revenues relative to GDP. We won't generate those higher revenues without tax reform. Sounds like more Keynesian BS to me...
The Irish people have been put on austerity measures, but the US government wouldn't dare mention it to it's citizens, so it just lets it's counties and cities and states slowly go bankrupt. If the Fed is "printing" trillions of dollars it is not getting to the states and cities, it is being given to the banks at zero interest and they are keeping it. Bernanke and Obama make Kim Jong Il look like a decent, caring, honest leader. Crime of the millennium.
