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Bernanke & Geithner: Seriously, Congress, Can We Drop This Debt Ceiling Charade Already?

Jan. 14, 2013 8:31pm Becket Adams

Ben Bernanke & Timothy Geithner Agree That Congress Should Just Agree to Raising the Debt Ceiling

Chairman of the Federal Reserve Ben Bernake speaks during a press briefing at the Federal Reserve 11, 2012 in Washington, DC. Bernake spoke to the press after meeting with the Federal Reserve’s Federal Open Market Committee. (Credit: AFP/Getty Images)

Federal Reserve Chairman Ben Bernanke and outgoing Treasury Secretary Timothy Geithner on Monday urged Congress to increase the nation’s debt limit, warning that a failure to do so could be catastrophic.

Bernanke took it a step further and even argued in favor of abolishing the debt limit altogether.

“I think it would be a good thing if we didn’t have [the debt ceiling],” Bernanke said during his presentation at the University of Michigan. “I don’t think that’s going to happen. I think it’s going to be around.”

Bernanke’s remarks were made during a broader discussion on different ways U.S. lawmakers can act to avoid a possible default. One student asked the Fed chairman whether he thinks the debt ceiling has any “practical value.”

“No, it doesn’t really have — it’s got symbolic value, I guess, but . . . no other countries in the world have this particular institution,” he answered.

“If the Congress is approving spending and it’s approving taxing, and those two things are not equal,” Bernanke continued, “the way to address it is by having a sensible plan for spending and a sensible plan for revenue and make decisions about how big the government should be or how small it should be.”

Meanwhile, a few states over, Geithner in a letter addressed to House Speaker John Boehner (R-Ohio) urged House leadership to — you guessed it — agree to an increase in the debt limit.

In this Nov. 30, 2012, photo provided by CBS News Treasury Secretary Timothy Geithner. Credit: AP

“It is important to point out that extending borrowing authority does not increase government spending; it simply allows the Treasury to pay for expenditures Congress has previously approved,” Geithner writes. “Failure to meet those obligations would cause irreparable harm to the American economy and to the livelihoods of all Americans.”

“Threatening to undermine our creditworthiness is no less irresponsible than threatening to undermine the rule of law, and no more legitimate than any other common demand for ransom,” he adds. “I respectfully urge Congress to meet its responsibility to the country by extending normal borrowing authority well before the risk of default becomes imminent.”

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Comments (50)

jatucci
Posted on January 15, 2013 at 12:46pm
No budget no no raise in debt draw the line in the sand already

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satotbs
Posted on January 15, 2013 at 9:37am
Listening to or reading the comments of fools and liars is a waste of time and costs you IQ points. If a liar shouts his message and nobody hears him does he make any noise? The pied piper wants you too, he will be paid by the quantity of lemmings he marches to their doom.

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- smokeysmoke
  Posted on January 15, 2013 at 11:39am
  can we drop this spending/demand side economics… that are driving the WAGE-PRICE SPRIAL that we have been seeing since the times of FDR…. our government is not protecting us from a depression by limiting supply while doing everything it can stimulate demand in the economy… all we have been seeing is a devaluing currency, at the same time energy,housing, food and almost all basic living needs have become extriemly expensive becuase of the LACK OF EMPHISIS ON SUPPLYINg THESE GOODS, but rather the taxation of these goods, labor skimming the cream, ECO FACISTS, it becomes unprofitable to produce here in the us,, SO WE HAVE BECOME A CONSUMPTION BASED SOCIETY
  
  and it is a result of policies that were put in place under FDR, and the changing of the income tax from it being a capital gains long term profits tax, and it became what we see as the progressive income tax WHICH WAS DESIGNED TO SOAK THE MIDDLE CLASS INCOMES… while providing the image of soaking the rich in taxes….
  
  even things such as the bush tax cuts have contributed to this problem, by giving tax cuts to middle class consumers who spent the money, while bush was not doing enought to emphisize SUPPLY OF THOSE GOODS FIRST, followed by lowering the taxes to a market that has been PRODUCING THEIR OWN GOODS….
  
  the loop holes we see in the tax code give hundreds and millions of reasons to spend money on things you dont need cause you get to write it off, and take on debt for the rest, write off the int
  
  Report this comment
VetMike
Posted on January 15, 2013 at 8:47am
Spending money is like a drug; after awhile you need more to get the same high. This is absolutely catastrophic path to take. One can only wonder if it a deliberate choice by the administration as it will led ultimately to the destruction of our country.

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castious
Posted on January 15, 2013 at 6:11am
OK how would the U.S. economy be if the real conservatives in all goverment offices force all repulicans kicking and screaming to the tables and do the real fiscal responsibilities that our forefathers warned us about doing to get the Dollar back to have real value. I dont care what it takes to get the Dollar to have real value to equil 1/35 of a gold ounce. If we did this then we would have real stability in the world as in before the 1912 elections.After we have the Dollar back to the value of 1/35 ounce gold then demand that the world repay all the war debts even if we get nickled and dimed to get what is our money back.That may mean some changes in our laws to do this then make it permanent except for emergancies. Man wouldnt be nice to have a real Dollar again and perhaps there general would be peace in world as in before the watermelon comie left really got their agenda started, (i.e. as in Teddy Reddy Roosevelt, Woody woodpecker Wilson,alMost Kaiser Frank Roosevelt,J.F.K’s Royal Camelot,L.B.J’s Great Society,Jimmy Carter Disasters,The Impeached Liar Slick Willy Clinton, and now the Socialist, Marxist, Commie ,Watermellon,Premier Barack Hussein Oblamer as the reelected Kaiser of the new United Socialist States of America.) And delete/remove/erase most executive orders.then i know i would be one happy camper i dont know how others would think/feel about this.

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- Walkabout
  Posted on January 15, 2013 at 2:27pm
  Murkowski from Alaska is already signaling retreat on the 2nd Amendment. She’ll probably signal retreat on this issue as well to be reasonable.
  
  I wish Palin would have knocked her out of the political ring. Murkowski might be a nouveau aristocrat, but she is every much an aristocrat as Nancy Pelosi.
  
  Report this comment
aplingtjayonia
Posted on January 15, 2013 at 3:38am
I’m just thinking about this new appointee, Lew. I wonder if Rush will do a song parady for him, perhaps using Brother Louie by the Stories, or Louie Louie by the Kingmen or, maybe, Skip to My Loo My Darling by, hmmmm, I think Larry Craig.

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TheBurningTruth
Posted on January 15, 2013 at 1:14am
Always remember that the goal of this crushing debt is to require the seizure of assets because the debt will be too large for simple income theft (redistribution). This is how President Marxist is planning on accomplishing socialism. Seizure of assets to finance (never payoff) the huge debt is how they’ll reduce everyone not in the elite class.

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rsanchez1
Posted on January 14, 2013 at 10:19pm
Executive Branch: Seriously Legislative Branch, can we drop the charade that you have any power already?

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- johnpaulkuchtajr
  Posted on January 14, 2013 at 11:26pm
  Those statements, coming from Geithner and Bernake, are all the back-up I need to reinforce my contention that they plan on repudiating the US debt anyway. If that’s your goal, why not rev-it-up?
  
  That will cause a world-wide collapse and that is precisely what these jokers wanted all along
  
  Throngs in the streets, clamoring for food are easy to mold into good little Marxists / Socialists with a few loaves of bread.
  
  “Remember Benghazi and ALL the Traitors!”
  
  Report this comment
- drs1969
  Posted on January 14, 2013 at 11:39pm
  Executive Branch=Bankers.
  End the Fed!
  Keep the debt ceiling, it’s the only thing that keeps the dollar alive. The dollar wouldn’t be worth toilet paper w/o it.
  
  Report this comment
adimeroll
Posted on January 14, 2013 at 9:47pm
He used the word sensible twice in the same sentence… The word sensible is defined as using sound judgement……if your sewer backs up into your basement do you raise the ceiling to allow more in….

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Stelex
Posted on January 14, 2013 at 9:22pm
The head of the serpent is finally speaking out. The Fed, the IMF, the UN. The major Banks. These are the players Obama works for. These are the folks whom should be targeted for crimes against humanity. A few well placed “investigations” to key targets would probably get their attention.

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OlefromMN
Posted on January 14, 2013 at 9:19pm
“the way to address it is by having a sensible plan for spending and a sensible plan for revenue and make decisions about how big the government should be or how small it should be.”

OK

We just got suckered into an increase in taxation on “the rich”, now revenues are set. Guess it’s on to that size of government to fit revenues thingy that you speak of Bernanks. Can’t spend more than we take in and we’ve got plenty of debt service to gobble up a good chunk of revenue. Looks like it’s time to tighten the belt to a point that little government workers are squeezed out of the pucker pose they have on Obama’s hind side.

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JEQuidam
Posted on January 14, 2013 at 9:14pm
Everyone should sign this WhiteHouse.gov petition to freeze the debt ceiling: http://wh.gov/UpGJ

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- DadRocked
  Posted on January 14, 2013 at 9:35pm
  What does any of those petitions accomplish?
  Sign if you must but you’ll only get a response from us NOT from them…
  
  Accomplish? Me responding to you is more than you’ll ever get from them…
  
  Report this comment
Rob
Posted on January 14, 2013 at 9:13pm
After the smoke clears, I am for gladiatorial combat with these crapweasals in the ring to the death… I can’t wait to see Chris Matthews fighting Obama. Thrills running up my leg… Have it on pay per view and clear up the debt with the profits.

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taxpro4u03
Posted on January 14, 2013 at 9:04pm
Ah – the Creature From Jekyll Island rears it’s ugly head once again… thanks, Woody — Never mind the Banking Holiday FDR called on day one b4 the ink was even dry on his inauguration paperwork (THAT guy was elected FOUR TIMES….and our parents and grandparents thought he was the best thing since sliced bread!) — How’d FDR assist in ‘resetting’ the global financial fiasco? — M-Hm — Not good…

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- drs1969
  Posted on January 14, 2013 at 11:42pm
  WW2 was the answer to the bankers prayers! If nukes fly this time, here’s hoping the Fed and Bernanke get the first one.
  
  Report this comment
fande3rls
Posted on January 14, 2013 at 9:01pm
They both should now be investigated for Crimes against the Constitution and the citizens of the United States

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- Stelex
  Posted on January 14, 2013 at 9:17pm
  Crimes against humanity………these are the folks that need to be dealt with. WITH EXTREME PREJUDICE.
  
  Report this comment
- Walkabout
  Posted on January 14, 2013 at 9:42pm
  Of the 4 Quantitative Easing (QEs) procedures done, I have heard from some commentators that only the 1st one was the right thing to do. Zerohedge has shown that the stock market pushes higher when QE easing is announced. They also showed via a graph that each subsequent QE has had diminishing returns.
  
  So Ben Bernanke has been pushing QE when it has not been working. So when Bernanke is calling out the House of Representatives, I have to take that with a huge grain of salt.
  
  By raising the debt ceiling, Obama will roll up his sleeves & really get to work. Like Alynski He will isolate, fix & ridicule his target. He will propose stimulus (slush fund) or jobs program (patronage payback) & other spending that will greatly add to the debt. If the Republicans don;t cave he will use the MSM & demonize the the Republicans.
  
  Cora or her sister said in The Last of the Mohicans” that may be the colonists would be better off under the French than asking “by your leave” of the British aristocrats.
  
  Maybe we would be better of if foreign countries that own U.S. treasuries put the U.S. under receivership than under the Democrats.
  
  Report this comment
- drs1969
  Posted on January 14, 2013 at 11:49pm
  Re: Walkabout
  Each QE (counterfeiting) has been smaller and smaller, as % of GDP. That’s why the ‘effect’ has been smaller. Still, gasoline is at $3.30 a gallon, and gold over $1600 an oz.!
  
  Report this comment
- Walkabout
  Posted on January 15, 2013 at 2:49pm
  DRS1969
  
  I see that now. I did not look into the amounts so much
  
  http://en.wikipedia.org/wiki/Quantitative_easing#In_Japan
  
  Still When I went to verify the amount the 1st thing I see is Japan. That worked out well.
  
  My belief is that anything more than 3% inflation is theft. If it is the government causing it. It erodes savings. Even if no one had savings it transfers wealth to people who “get” the newly created money 1st. It is theft.
  
  Zerohedge did show chart how each QE boosted the stock market only to have it start falling once a gain. I don’t think much of Geithner. Although I think a little better of Bernanke (some have said the 1st QE was the right thing to do but not subsequent ones). Bernanke & the FED are not going to solve our problems. They can only delay them. the government & the people have to solve the problems & the Democrats & RINOS are in the way. We have a spending problem
  
  Report this comment
barber2
Posted on January 14, 2013 at 8:57pm
Know what the New York Times is reporting on its front page right now ? ” Chaos As Strategy : Republicans have made it clear they are prepared to shut down the government and default on the credit of the U.S.” Get that , folks ? The Left is blaming all of the mess immediately on the Republicans. Can you see what conservatives/ Republicans are up against with this MSM propaganda brainwashing the American people ? The MSM water-boards the public with all of this pro-Obama info. This is the same propaganda/ hiding mess that droned him in for 2008 and again in 2012. America is under assault and our MSM is part of the weapons of mass destructions against us.

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- drs1969
  Posted on January 15, 2013 at 12:04am
  Let’s say Congress were to raise the ceiling by 10 %(1.6Trillion). This would, coincidently, also amount to about 10% of GDP. That’s the same as slapping a 10% tax on the economy. $2 Trill. would be around a 12.5% tax, plus interest! Who benefits? The gov.(increased revenues) and the banks (thru inflation) that control gov. and the media. They will attack Rep’s relentlessly. Freezing the debt ceiling is like flashing the Cross at Dracula.
  
  Report this comment
media-bias-steals-elections
Posted on January 14, 2013 at 8:54pm
Anxiety is not treated by medications, but by common sense, therefore, if thou must discuss the 14th Amendment, should thou must first create the budget demanded by the US Constitution? Thou shalt — a common legal term that has followed us for centuries?

I laugh at this nonsense (President Obama’s theatrical use of language), and it was refreshing to hear Mark Levin discuss that the US is no where near in default? By the way, where the heaven is the budget?

Does Mr. Biden have any recommendations that does not involve the President telling Americans they have guns to their heads? Do they want to unite Americans with common sense, the pursuit of happiness, tranquility and prosperous liberty or the institution of anxiety, fear, oppression, and the next crisis that they have a theory on how to solve?

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For my Liberty!
Posted on January 14, 2013 at 8:50pm
Sure it is paying for the bills that have already been passed….YOU know..those things that the GOP said HAD to be done…YOU know…Ovomit Care…..The STIMULUS…..THOSE kind of things…BAD GOP…BAD!

When are the dems going to understand that Americans HAVE woke up…..The smoke and mirrors, the games, and the blaming the OTHER party for the things the DEMS themselves have done is not working like it USED to!

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- barber2
  Posted on January 14, 2013 at 9:01pm
  Lord, I hope so or our economy and , thus, our security are toast.
  
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civilwarcometh
Posted on January 14, 2013 at 8:45pm
This country has completely lost it’s way.

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Margyt
Posted on January 14, 2013 at 8:43pm
We don’t have a lot of options except to roll over and die. If congress won’t stand for what is right, all is lost. Two years to the next election is too long.

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- Shasta
  Posted on January 14, 2013 at 8:53pm
  People will be more desperate than ever for their free stuff in 2 years. If the house is lost, there will not be enough left of our republic to recover. What we do when it all collapses is the only chance this country has. Politicians should read history to understand what will probably happen to them if they steer this country off the cliff.
  
  Report this comment
jessieH
Posted on January 14, 2013 at 8:41pm
Let’s put it this way so even the liberal socialists can u-n-d-e-r-s-t-a-n-d. Untill Congress can get off their collective asses & balance our budget, no new spending.

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BODYBAG
Posted on January 14, 2013 at 8:38pm
Translation ——– These guys are REALLY worried about this.

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- drs1969
  Posted on January 15, 2013 at 12:14am
  They’ve already floated the Trillion $ coin idea. Now comes the IOU idea. If this catches hold, like it did in California, look for Bernanke to accept them from banks. If that happens, kiss the dollar goodbye. People need to seriously think about where their savings are. This will absolutely collapse the dollar. I’d rather have scrap metal and junk cars lying around if this happens, than to have 1 $ in banks, bonds or IRA’s.
  
  Report this comment
Darmok and Jalad at Tanagra
Posted on January 14, 2013 at 8:37pm
That’s like a druggie saying to the drug dealer “Come on, just give me as much as I want, what’s the harm?”

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KingCanon
Posted on January 14, 2013 at 8:36pm
Masters of Deception.
The Great Deceiver.
Minions of Satan now control DC.

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- barber2
  Posted on January 14, 2013 at 9:07pm
  KING: Agree. The actions of the Chicago radical Democrats should be enough to make even the atheists believe in the Devil – if they are aware of what is going on in this administration and its Lap Dog MSM ! Deception. Twists and spins. Smoke and mirrors. Hate and anger. Blame everyone. Distract. Lies.
  
  Report this comment
progressiveslayer
Posted on January 14, 2013 at 8:35pm
I agree let’s get to where Greece is quickly,all this talk is tedious and it’s time to thin the herd,been waiting for years.

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- BODYBAG
  Posted on January 14, 2013 at 8:44pm
  Right on SLAYER. Right on.
  We get there even quicker if the House tells Buckwheat to go F himself.
  
  The arrogance here is astounding. Everyone with a brain can figure out when you call up your
  bank to increase your credit limit ——- ITS ABOUT SPENDING. When the bank denies your
  request then you have to make do.
  
  Report this comment
- progressiveslayer
  Posted on January 14, 2013 at 8:53pm
  I never thought I’d see the day a tyrant would try and seize absolute power but we’re witnessing it right now. Our founders knew this day would come,those men were geniuses and that’s why they crafted the DOI the way they did, to deal with a tyrant.
  
  Report this comment
- booger71
  Posted on January 14, 2013 at 9:24pm
  I think we have already surpassed Greece in debt/GDP ratio
  
  Report this comment
John 1776
Posted on January 14, 2013 at 8:35pm
When was the last budget passed?

And we are suppose to give them the ultimate blank check on future spending?

These people don’t even try to be realistic anymore.

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- progressiveslayer
  Posted on January 14, 2013 at 8:42pm
  The last budget was passed over four years ago and this POS fraud president has no intention of passing a budget. He will however collapse the dollar and destroy our economy by design,he’s using the Cloward and Piven strategy to collapse the system.
  
  Report this comment
- BODYBAG
  Posted on January 14, 2013 at 8:51pm
  White House tells Paul Ryan it won’t meet budget deadline
  http://thehill.com/blogs/on-the-money/budget/276969-obama-budget-delayed-again-white-house-tells-paul-ryan
  
  “Under the law, President Obama must submit a budget by the first Monday in February, but he has met the deadline only once. The annual budget submission is supposed to start a congressional budgeting process, but that has also broken down. The Senate last passed a budget resolution in 2009.”
  
  Report this comment

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