Bernanke: ‘Things Will Come Apart’ If Entitlements Are Not Reformed and Spending Controlled
Posted By thestatedtruth.com on June 15, 2010
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I think we all know this!
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Thursday, June 10, 2010
By Matt Cover, Staff Writer
(CNSNews.com) – Federal Reserve Chairman Ben Bernanke delivered a frank assessment to Congress on the fate of the economy if entitlement programs are not restructured. On Wednesday, Bernanke warned that “things will come apart†if Congress allows the federal entitlement programs and the deficit spending they cause to continue on their unsustainable path.
Speaking at a hearing of the House Budget Committee, Bernanke offered his dire prediction after being asked what would happen if Congress did not take action to head off the impending crisis brought on by unsustainable entitlement spending, led primarily by Medicare.
“The entitlement programs are not self-funded,†Bernanke said, “they are unfunded liabilities. They are the single biggest component of spending going forward.â€
Bernanke said that there were several ways Congress could fix these problems, which amount to approximately $53 trillion in unfunded liabilities, but that eventually Congress must address the issue.
“There are various ways you could address this – you can restructure entitlement programs [or] you can cut other things – but at some point you need to address the overall budgetary situation. If you don’t, you’ll get a picture like this one [pointing to a graph showing a steep rise in interest rates and debt] where interest rates are rising and debt outstanding is growing exponentially.
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