[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

AC/DC drummer Phil Rudd rocks the high-rollers

Republican Barbarians at the Gates

Ancient Roman Nanotechnology Inspires Next-Generation Holograms for Information Storage

Belarus Wants to Criminalize Unemployment

Former NSA Official: Anyone Who 'Justified' Snowden's Leaks Shouldn't Be Allowed A Gov't Job

CIA Apparently 'Impersonated' Senate Staffers To Gain Access To Documents On Shared Drives

Rand Paul just gave one of the most important foreign policy speeches in decades

Holder ‘Exasperated’ Over ‘Selective Leaks’ Of Wilson’s Grand Jury Case

Indiana’s Toll Road Goes Bankrupt

Love Is the Answer to Empire

THANKS, CUOMO, NOW WE HAVE EBOLA

Ebola was October’s Political Surprise…Amnesty will be November’s Reality

Debate crowd loudly laughs at “War Against Women” charge by female Dem challenger (#NY23)

Craig Spencer Tests Positive For Ebola In New York City

Things Fall Apart–America In Crisis

As America's Kids Starve On Government Lunches, Illegals Get Second Helpings And Gitmo's Finest Get Fat

Sources: NYPD Hatchet Attacker May Have Been ISIS Supporter

Retired pope says interreligious dialogue no substitute for mission

Burrito chain urged to drop 'illegal' from name

‘My house is not for sale’: Indiana residents fight city’s home-seizure plan

Where Did Ebola Come From?

Microsoft Co-Founder Paul Allen Bumps Ebola Effort to $100 Million

Does This Look Like a President That Can Save You From Ebola?

Obama claims executive privilege over 15,000 Fast and Furious docs

Oct. 24 & 25: Second Round of National Protests Against Illegal Immigration and Amnesty

Report: At least seven black witnesses have corroborated Darren Wilson’s testimony before the Ferguson grand jury

I've been informed some banned people want to post Plus I corrected the Status of Fred Mertz

Will Michelle Obama go into politics next?

Dan DiMicco's solution for what ails U.S. economy? Manufacturing

Federale In Japan: It Works—And It Could Work In The U.S. Too

850 voters in NYC are officially 164 years old

Revealed Autopsy Destroys 'Gentle Giant' Michael Brown 'Hands Up, Don't Shoot' Story

Soldier, 24, shot dead by Muslim convert Michael Zehaf-Bibeau who opened fire on Canadian Parliament

INELIGIBLE DACA BENEFICIARIES DISCOVERED ON NC VOTING ROLLS

Multiple shooters reported in Canada attack By Ashley Fantz and Josh Levs, CNN

Armed Huey P. Newton Gun Activists and Black Panthers Marched Through Dallas Yesterday

So sez secular LP poster Jwpegler: "Fund[ies] who run around screaming and hollering about gays are more like Old Testament Jews than New Testament Christians"

How the Obama administration handles scandals and scares

Obama Has Cut a Deal with African Leaders to Bring Ebola Patients into US

A Cultural Marxist Tries To Deconstruct Japan. Guess What, He’s American

Ebola Czar Says Population Growth Is Top Issue Facing the World

Blow by blow, Ferguson cop's FULL version of why he shot Michael Brown: 'Incredibly strong' teen pressed gun to cop's hip, the gun was jammed by a finger - and kill shot was fired as Brown 'charged'

EU Shuts Down British Power Plants

Facebook Censors Anti-Obama Postings

Shiite Kuwaiti Imam: ISIS Sold Thousands of Women, Girls, and Children to the Jews in Israel

Australian ISIS Fighter Threatens West: We Will Conquer White House, Buckingham Palace

HOUSE JUDICIARY COMMITTEE STAFF REQUEST BRIEFING ON USCIS IMMIGRANT ID SOLICITATION

#4558 - Warning: Extremely Disturbing Images. Woman Stoned to Death by ISIS in Syria The Internet - October 21, 2014 - 04:58

Chicagoland voting machine casts candidate’s vote for his Dem opponent

BREAKING: NBC freelance cameraman Ashoka Mukpo no longer has Ebola virus, free to go home.


Status: Not Logged In; Sign In

United States News
See other United States News Articles

Title: Bernanke warns lawmakers country headed for 'massive fiscal cliff' [Ya THINK???]
Source: [None]
URL Source: http://thehill.com/blogs/on-the-mon ... -warns-of-massive-fiscal-cliff
Published: Mar 1, 2012
Author: Peter Schroeder -
Post Date: 2012-03-01 13:20:30 by Capitalist Eric
Keywords: None
Views: 137

Congress risks taking the economy over a “massive fiscal cliff,” Federal Reserve Chairman Ben Bernanke warned lawmakers on Wednesday.

In remarks that hit Wall Street stock prices, the central bank boss suggested the economy could hit a serious roadblock if Congress allows the Bush tax rates and a payroll tax cut to expire and $1.2 trillion in spending cuts to be implemented simultaneously in January.

“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.

“All those things are hitting on the same day, basically. It’s quite a big event.”

The tax hikes and spending cuts could knock GDP growth in 2013 down from 2.6 percent to 1 percent, according to Andrew Fieldhouse, a federal budget policy analyst with the liberal Economic Policy Institute .

Bernanke’s comments underline the stakes for this year’s post-election lame-duck session of Congress, when the fate of the tax rates and spending cuts are likely to be determined. Congress is also not expected to raise the debt ceiling until after Election Day, but is unlikely to be able to punt that decision beyond the lame-duck session.

The nation’s triple-A credit rating hangs in the balance, with agencies likely to decide on whether to downgrade the United States depending on what happens to the debt ceiling, tax rates and spending cuts. The fiscal triple whammy was set up by the failure of a supercommittee of lawmakers to agree on a deficit-cutting plan last year.

Bernanke, who has long advised policymakers to rein in the deficit, called again Wednesday for a “credible plan” to reassure markets that the nation is repairing its finances.

Failure to do so could trigger another financial crisis and sharply higher interest rate, as is happening in Europe, he said.

Bernanke warned that draining funds from the economy by allowing tax cuts to expire and trimming spending could slow growth.

“You ... have to protect the recovery in the near term,” he warned.

Some Republicans, such as Sen. John McCain (Ariz.), have already vowed to find alternatives to the spending cuts, which would hit the Pentagon. And the fight over the Bush tax rates will be a central theme of the presidential election.

President Obama wants to extend the individual tax rates for families with annual income below $250,000 and individuals below $200,000, while allowing tax rates on higher incomes to rise. Republicans want to extend all the Bush-era rates.

Congressional Democrats are increasingly embracing $1 million in income as the right threshold above which higher income taxes should kick in.

“Obviously, the Speaker is opposed to the massive tax hike that Washington Democrats have engineered for the end of the year,” Michael Steel, a spokesman for House Speaker John Boehner (R-Ohio), said Wednesday.

While economic conditions have improved and the unemployment rate has fallen, Bernanke warned that the labor market is still “far from normal.”

“The unemployment rate remains elevated, long-term unemployment is still near record levels and the number of persons working part-time for economic reasons is very high,” he said.

Underlying data suggest the economic expansion is “uneven and modest by historical standards,” and that Europe’s debt crisis remains a persistent threat to the U.S. recovery, he said.

The Fed has lowered interest rates effectively to zero and vowed to keep them there through the end of 2014 in response to those challenges, but Bernanke suggested there is little more the central bank can do.

“Monetary policy is not a panacea,” he said. “The long-term health of the economy depends mostly on decisions taken by Congress and the administration.”

Bernanke acknowledged the difficult politics of taxes and spending cuts.

“These criticisms are easy for me to make,” he said. “I don’t have to deal with the politics.”

He steered clear of recommending a specific deficit-reduction path for Congress, but said it is “very important” to address rising healthcare costs and that the economy would benefit from a clear plan from Congress to reform the housing market.


Poster Comment:

He should know, since his organization is responsible!!!!

Post Comment   Private Reply   Ignore Thread  


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com