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Why The Federal Reserve Is To Be Partially Blamed For The Deficit

2 March 2011 3 Comments

Ron Paul to Ben Bernanke: “the Congress and the Fed are symbiotic because the Congress spends and they know there is a moral hazard involved because they know that if interest rates go up, the Fed accommodates them. So the Fed really facilitates this spending, and until we realize this I think the Fed is involved with our deficit and encourages it as well as the Congress.”

3 Comments »

  • fxgeorges said:

    Carter started it. Reagan partially fixed it, the Bush 1 didn't change much, Clinton exacerbated the problem, Bush 2 didn't do much, then Barney Frank and Chris Dodd took the whole damn thing over the edge. Obama tried to put out the fire with gasoline and now the flames are eating everything.

  • exchangerates said:

    " Federal Reserve chairman warns of 'unusually uncertain' outlook for US "
    with such negative comment from the guru himself how does stock indexes manage to be sharply up ??? can it be magic or black voodoo or just the usual guys at work?? ie. buying the futures using the taxpayers money to prop up the market ??
    what a joke the free market economy has turned out to be.

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