Federal Reserve Chairman Ben S. Bernanke urged Republicans during a dinner meeting yesterday to find a way to “deal with” the rising U.S. national debt without endorsing a specific plan, lawmakers who attended said.
Again, back to my previous Ticker on this point, if you “deal” with the excessive borrowing and spending GDP will contract. Period.
Now, since Congress is incapable of telling the truth (specifically, telling the American Public that the entire last three years of so-called “economic recovery”, and the entire prior 10 years worth of alleged “growth” were in a fact a lie prompted by that excessive borrowing, and that Congress is the one responsible for putting forward not only their own budget but allowing everyone else to lie) exactly what did Bernanke have in mind?
I have a suggestion: We could selectively default on all those Treasuries The Fed has monetized, and withdraw all support, formal or otherwise for Fannie and Freddie, forcing the MBS The Fed also monetized to their actual fair market value.
Sounds like a plan.