Monday, October 19, 2009

Welcome to the Party, Pal!

You just never know what you will see when you read the news....

Fed boss says US should cut budget deficit

AP Economics Writer

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke on Monday called for the United States to whittle down its record-high budget deficits and for countries like China to get their consumers to spend more, moves that would help combat skewed global trade and investment flows that contributed to the financial crisis.

Bernanke's remarks to a Fed conference in Santa Barbara, Calif., comes just days after the federal government on Friday reported a $1.42 trillion deficit for 2009 budget year that ended Sept. 30. The previous year's deficit was $459 billion.

I applaud you, sir. I am with you 100% and am glad to see you want the US Government to slow down on the bailout funding responsible for the increase in our debt and deficit. Just one thing, a year ago, weren't you advocating dumping cash into the economy as a way to stave off a recession? This is Bernacke one year ago from the LA Times.

Fed Chairman Ben Bernanke supports stimulus plan

By Jim Puzzanghera and Maura Reynolds|October 21, 2008

Reported from Washington — The last major obstacles to another government stimulus package began crumbling Monday, shifting the debate from whether the fading economy needs a jolt to the best way of providing it.

Federal Reserve Chairman Ben S. Bernanke endorsed the idea of further stimulus for the first time in congressional testimony Monday. Soon after that, the White House said President Bush was "open to ideas" as long as they were "targeted, temporary and timely."

Bernanke's backing of more government stimulus helped stir the stock market. The Dow Jones industrial average closed up about 413 points, or 4.7%, on hopes of more government action and signs that the credit markets were improving.

So let me get this straight, the Fed Chairman supported dumping money into the economy to spur recovery, and now says we need to fill the hole he dug to do just that. Interesting position, Ben. Maybe one of these days you could stay on one side of the fence?

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