Congress risks taking the economy over a “massive fiscal cliff,” Federal Reserve Chairman Ben Bernanke warned lawmakers on Wednesday.Here is the problem,Big Ben,we are headed towards a cliff,but spending cuts IS NOT driving us over that cliff.Its SPENDING that's sending us to doomsday.We have a government that not only we,the United States can't afford,but the whole world together can't afford us either.We literally owe more money than their is in the whole wide world.
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.
What Bernanke knows is,that our economy has been made dependent on the Federal government by the Keynesian's and the progressives,and when we cut the budget -and we will either by choice or force- it is going to hurt our economy.So many,from the poorest to the richest receive subsidies from the government in some form,that to eliminate just a small portion of those subsidies would have some adverse effect on our economy.But for us to get fiscally healthy that is a pain we must endure.
On another note,Ben Bernanke also asked Congress to vote on a Constitutional amendment that would make rocks and sticks legal U.S. currency,since Quanative Easing has made our money worth as much.