Rep. Paul Ryan issued an urgent call to conservatives Friday to bridle the debt and head off a crisis he described as a looming “moral failure,” defending the budget he introduced earlier this week from a barrage of Democratic attacks.
“We have to tackle this problem before it tackles us,” Ryan said, speaking on the second day of the Conservative Political Action Conference.
Putting the problem in stark terms, the House Budget Committee chairman and former vice presidential nominee said the nearly $17 trillion debt will “weigh down the country like an anchor” within the next 10 years. He said lenders will at that point lose trust and interest rates across the country will soar — under pressure, he said the federal government will print more money, cheapening the currency and leading to a financial collapse that has the effect of unraveling the social safety net.
“It would be a moral failure,” Ryan said. The deficit spending, he said, “has to stop.”
The Final Con…”Better prepare! The tragedy that lies ahead is apt to make the Great Depression look like a walk in the park.”
The stock market has now been up for ten straight days. Many on Wall Street are singing “Happy Days Are Here Again.” For them, that is probably the case. They finally have something to sell that will bring the rubes back into the markets. We are not in Kansas anymore.
Fear is ebbing and greed is coming back. Those on the outside looking in are rounding up cash so that they don’t get left behind. The shills assist them with their pictures of economic recovery, new era crap and whatever other nonsense they can peddle successfully. So the cycle goes, as it has since the New York Stock Exchange came into existence. We are in another game of musical chairs where the music is playing joyfully. As in all such events, there are too few chairs to accommodate the participants when the music stops. And it always does!
There is no economic justification for the level of these markets, at least in the sense of improvements to the real economy. The economy is in worse shape than it was several years ago, made so via massive government interventions. Debt has been piled onto governments, corporations and individuals. It is not serviceable, certainly not at market-determined interest rates. Artificially low interest rates prolong the game, but do so by further corrupting economic decisions and the economy.
kingworldnews.com / March 16, 2013
Today a former Assistant Secretary of the US Treasury warned King World News, “This type of situation is extremely dangerous. The world has never seen it before.” Former Assistant of the US Treasury, Dr. Paul Craig Roberts, also told King World News that JP Morgan now threatens the stability of the entire global financial system. And if the Fed loses control and we collapse, “Nothing and no one would be safe anywhere.”
Here is what Dr. Roberts had to say in the second and final part of this extraordinary interview: “I can point out three giant bubbles that threaten the remains of the American economy … When these bubbles pop, the consequence is obvious: The wipeout of the remaining wealth from bond and stock collapses, and a very strong domestic inflation from the rise in the import prices.”
Dr. Paul Craig Roberts continues…
“The United States is now an import dependent country. It doesn’t produce its own manufactured products, clothes, shoes. These import items dwarf the import of oil or energy. So what is the potential for happening when these bubbles burst is widespread unemployment, and a rapid increase in inflation, before which the economic policy has no known solution.
… It is frightening, and it shows the extent to which the economic policy of the United States is misused in support of four or five big banks that are ‘too big to fail’ … We now have one bank, JP Morgan, which has derivative exposure equal to the (entire) world’s GDP….
On Bernanke’s balance sheet bubble.
‘How will Bernanke deleverage into this market when the Fed itself owns the bulk of tradeable Treasuries. Who wants to sell assets into a fragile recovery with the debt continuing to rise. Bernanke will delay, delay, delay!’
‘We’ll fight it tooth and nail!’ Under no circumstances!’
Bernanke: ‘I See No Evidence Of A Stock Bubble’
Analysis from Bloomberg:
Equity bubble? Bond bubble? Is Bernanke right?
The state, crippled by massive deficits, endless war and corporate malfeasance, is clearly sliding toward unavoidable bankruptcy. It is time for Big Brother to take over from Huxley’s feelies, the orgy-porgy and the centrifugal bumble-puppy. We are transitioning from a society where we are skillfully manipulated by lies and illusions to one where we are overtly controlled. We are one crisis away from a police state. All the powers are in place. Someone will flip the switch. Whether a Cyber Attack, escalating Currency War tensions or a ‘terrorist’ attack by indebted college youth, it is only a matter of time and circumstance… We are one crisis away from a police state. All the powers are in place. Someone will flip the switch. Whether a Cyber Attack, escalating Currency War tensions or a ‘terrorist’ attack by indebted college youth, it is only a matter of time and circumstance.
SHOCKING! Obama: ‘We Don’t Have an Immediate Crisis in Terms of Debt’ … I Won’t Balance Budget ‘Just for the Sake of Balance
In an interview that was released this morning with former Clinton aide George Stephanopoulos on ABC, President Obama talked a little about his view of the debt.
“[W]e don’t have an immediate crisis in terms of debt,” Obama said. “In fact, for the next ten years, it’s gonna be in a sustainable place.”
Obama continued, “The question is, can we do it smarter, can we do it better? And– you know, what I’m saying to them is I am prepared to do some tough stuff. Neither side’s gonna get 100%. That’s what the American people are lookin’ for. That’s what’s gonna be good for jobs. That’s what’s gonna be good for growth.”
President Obama Won’t Balance Budget ‘Just for the Sake of Balance’
In an exclusive interview with ABC News, President Obama rejected calls to balance the federal budget in the next ten years and instead argued that his primary economic concern was not balancing the budget, but rather growing the economy.
“My goal is not to chase a balanced budget just for the sake of balance. My goal is how do we grow the economy, put people back to work, and if we do that we are going to be bringing in more revenue,” he said.
Obama rejected a proposal put forth by Rep. Paul Ryan today that would balance the budget in ten years, saying the Republican House member’s plan “slashes deeply” at programs like Medicaid.