Ben Bernanke, chairman of the Federal Reserve, blames most of the looming “fiscal cliff”on Bush. ‘If’ Congress allows the Bush tax rates and a payroll tax cut to expire along with $1.2 TRILLION in spending cuts” (joke of the year – how many years before we accomplish that? Certainly not in January 2013) we will fall off the cliff…don’t forget: Democrats refused the lifeline of Cut, Cap and Balance.
“Under current law, on Jan. 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases,” Bernanke told the House Financial Services Committee. “I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date. Source: The Hill
“All those things are hitting on the same day, basically. It’s quite a big event.”
The Hill writer Peter Schroeder blames the current problem on the “failure” of the SuperCommittee to come up with a plan to rein in spending, but we should have never had a few select members of Congress deciding the fate of the American economy. Each individual member of Congress is responsible, and don’t forget: Democrats refused the lifeline of Cut, Cap and Balance.
But then House Speaker John Boehner failed miserably in leadership by encouraging (maybe threatening) his Caucus to back off of legislation that would have resulted in, at least, something better than continuing debt ceiling increases. Had Republicans insisted on real, honest and immediate spending cuts to equal every dollar created by the debt ceiling increase, it would have been some progress. Nevertheless: don’t forget: Democrats refused the lifeline of Cut, Cap and Balance.
In February 2011 we were reminded of how Ben Bernanke reported the dire nature of our “fiscal cliff.”
[Speaking at the Press Club] But Bernanke’s citation of $9.5 trillion in national debt didn’t include the $4.6 trillion owed by the government to trust funds for things such as Social Security and Medicare, which have paid out cash to the Treasury in exchange for promissory notes. The full national debt – when both forms of debt are included – is already just under 100 percent of GDP, which is currently around $14.6 trillion. (Today, $15.4 TRILLION)
So, off the fiscal cliff we go whether we hear the truth from Bernanke, the media, and the Obama administration, or not.