Bernanke says to eliminate the debt ceiling
There are some days when the news just comes fast and furious, and seems to never end. As a result, I write and write and write.
Today, Fed chief Ben Bernanke (who in my opinion is trying to destroy our monetary system) said that Congress should just get rid of the debt ceiling, that it is a symbolic thing that has no practical value.
The debt ceiling came around in 1917, during World War I. Up until that point, Congress had issued each individual debt issuance separately. The idea was to create more flexibility in making payments. This way, they could run debt up to a certain point, then issue the debt for it, bulk transactions as it were.
So, here we have a man who is continually printing money to inject into the economy (a plan that isn’t working) by buying debt. Now he is buying mortgage backed securities (QE IV?). Isn’t that how we got into this mess in the first place? Other members of the Fed Board believe that he is going to cause inflation to suddenly hit fast and hard. But, Bernanke as chairman will have it no other way. This brings him in line with the views of Secretary of the Treasury Tim Geithner (tax evader).
Instead, Bernanke would rather see it abolished. What would this create?
Unlimited spending for Congress! More taxes on us!