Bernanke: Rising Debt To GDP Ratio Unsustainable
Federal Reserve Chairman Ben Bernanke was testifying in front of the House Budget Committee this morning and he made some interesting comments about our ongoing deficits and debt levels wrecking the future. The FOMC has long maintained that the deficits…
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Federal Reserve Chairman Ben Bernanke was testifying in front of the House Budget Committee this morning and he made some interesting comments about our ongoing deficits and debt levels wrecking the future. The FOMC has long maintained that the deficits cannot continue at the same rate as the past. Now with more than $1 trillion projected this year and with debt reaching over 100% of GDP, it is a part of Ben Bernanke’s speech this morning. He noted the risks of serious economic consequences down the road and said that U.S. fiscal policy must be placed on a sustainable path. He even noted that the current debt trajectory acts as a threat of crowding out private capital and reducing productivity. It also reduces our ability to respond to economic shocks.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
