Bernanke warns of catastrophe if debt limit not raised

[Book]

http://static.businessinsider.com/image/4c1b84fb7f8b9a3c529e0000/bernanke.jpg

Bernanke warns of catastrophe if debt limit not raised

(Reuters) - Federal Reserve Chairman Ben Bernanke on Thursday issued a stern warning to Republican lawmakers that delays in raising the United States' $14.3 trillion debt limit could have "catastrophic" consequences.

"Beyond a certain point ... the United States would be forced into a position of defaulting on its debt. And the implications of that on our financial system, our fiscal policy and our economy would be catastrophic," he told the National Press Club.

http://www.reuters.com/article/2011/02/03/idINIndia-54645920110203

[osoab]

Of course it a catastrophe. It will affect him. :sun:

[MNeagle]

Let me guess:

Martial Law
Bank Holiday
Internet Down

what am I forgetting? Didn't Congress hear something similiar in 2008?

[ximmy]

He needs to meet banker bonus projections for 2011...

[undgrd]

http://static.businessinsider.com/image/4c1b84fb7f8b9a3c529e0000/bernanke.jpg = http://pictureperfectsandiego.com/files/2009/12/disney-chicken-little-sky-falling.jpg

[Horn]

"Beyond a certain point ... the United States would be forced into a position of defaulting on its debt. And the implications of that on our financial system, our fiscal policy and our economy would be catastrophic,... it would be better plan in my opinion to push this default off onto our children"

[Apparition]

He should just wait for the real catastrophe when most or all of the US government's debtors dump the US dollar or demand repayment.

[DMac]

I hate to say it, but he's right. There are 2 choices:

If they stop QE to infinity & beyond, USA et al goes to hell in a handbasket.

If they continue QE to infinity & beyond, bankers/politicos get bonuses, then we go to hell in a handbasket.

ex·tor·tion
   /ɪkˈstɔrʃən/ Show Spelled[ik-stawr-shuhn]
–noun
1.
an act or instance of extorting.
2.
Law . the crime of obtaining money or some other thing of value by the abuse of one's office or authority.