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Econonomic downturn: Bernanke sais Fed will not print more money

By Lauren Todd     Feb 28, 2010 in Politics
As the U.S. economy continues its downward spiral, Chairman Ben Bernanke sais that the United States could face a crisis rivaling that of Greece, and that the Fed has no intention of printing out more money to resolve it.
Bernanke speaks of financial crisis looming
Bernanke speaks of financial crisis looming
Real Politics
At a House Budget Committee meeting last Wednesday, second term Chairman of the Federal Reserve, Ben Bernanke said that the Fed will "not print money" to pay for United States burgeoning debt. He said that the U.S. could shortly be facing a crisis like the one in Greece, as the United States will soon be hit with higher interest rates. Mr. Bernanke made the Fed's stance on the issue perfectly clear : "We're not going to monetize the debt," he said.
He also appeared to be very concerned about protecting the Fed's assetts. He stressed that Congress and the Administration will have to find a way to bring balance to the economy, without putting the Fed in harm's way, as reported in the Washington Times.
"It is very, very important for Congress and administration to come to some kind of program, some kind of plan that will credibly show how the United States government is going to bring itself back to a sustainable position," he said.
He emphasized that freezing the printing of the dollar will benefit the United States economy because cuts in Medicare, defense, Social Security and other popular programs, along with increased taxes, will pay off in the present in the form of lower interest rates.
Another debate in the Congressional hearing, was over Fannie May and Freddie Mac, the discussion by the House Budget Committee included whether or not the United States government would have to include the loans from these entities, incurred by the present administration into the federal budget plan.
Expect an increase in job losses and home and business foreclosures, as the dollar creation halts in order to stabilize the runaway deficit. The economy is not just turning downward, if something is not done soon, it will completely collapse and the financial leaders of this country are showing increasing concern over this.
More about Ben bernanke, Fed, Printing money
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