Ben Bernanke has been wrong on virtually every projection he has made. One hopes he is wrong on this one, but I doubt it.
From EconomicPolicyJournal.com:
… the central banker of the United States says in his own words:
“Let me return to the issue of longer-term fiscal sustainability. As I have discussed, projections by the CBO and others show future budget deficits and debts rising indefinitely, and at increasing rates. To be sure, projections are to some degree only hypothetical exercises. Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit. Herbert Stein, a wise economist, once said, “If something cannot go on forever, it will stop.”9One way or the other, fiscal adjustments sufficient to stabilize the federal budget will certainly occur at some point. The only real question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people plenty of time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will be a rapid and painful response to a looming or actual fiscal crisis.”This is as close as you are ever going to see a central banker admit that his country’s financial situation is so dire that it could breakup at any time.
More in the article.
Greetings,
The CBO, in a rare honest public statement, stated that the projected shortfall between revenue and obligations was 202 trillion dollars – not billion but trillion dollars. I, for one, do not see a scenario where that shortfall can be made up – not with taxes anyway.
At this point, anyone not actively preparing for our government to default on our debt or hyperinflation is just acting silly. Also, I do not want to hear any of that “I’m buying gold” crap that is out there as it will not do much good the day the dollar becomes worthless. Farmer Joe isn’t going to deliver you FOOD (something very valuable when you need it) for shiny metal. Also, the public has no memory of a time when gold and silver were actually currency or possess the means to test whether something presented as such even is.
Put away enough food and energy to get your family through the transition period. Those of us that have prepared are not going to trade what we have for gold and silver.
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