Lone Voice of Reason Warns of Debt Threat to Fed
No surprise, it's Kansas City Fed President Thomas Hoenig. Recap of yesterday's 4 hour hearings from the Peterson-Pew Commission on Budget Reform, with Hoenig, Rivlin and several others. Video included (at bottom of story).
---
Peterson-Pew Commission on Budget Reform >>
---
Full C-Span coverage:
---
Feb. 16 (Bloomberg) -- Federal Reserve Bank of Kansas City President Thomas Hoenig said the U.S. must take “difficult” steps to reduce spending and increase revenue so the central bank isn’t pressured to fund the “unsustainable” federal debt.
“It is a fact that the current outlook for fiscal policy poses a threat to the Federal Reserve’s ability to achieve its dual objectives of price stability and maximum sustainable long- term growth, and therefore is a threat to its independence as well,” Hoenig said today in a speech in Washington.
The Obama administration estimates budget deficits will total $4.3 trillion during the next five years and hit a record $1.6 trillion in the year ending Sept. 30. The U.S. must be “willing to disappoint a host of special interests” and tackle the debt, or it risks “its own next crisis,” Hoenig said.
“A government faced with rising debt levels must provide a credible long-term plan to re-establish fiscal balance,” Hoenig said in remarks at a policy forum hosted by the Peterson-Pew Commission on Budget Reform.
Hoenig said the plan should include “controlling budget earmarks, trimming subsidies to numerous economic sectors and resolving our banking problems and the perception that Wall Street is favored over Main Street, all of which would otherwise foster mistrust and cynicism among the public.”
Responding to audience questions, Hoenig said the Fed’s “primary goal” now is executing its “exit strategy” from a record credit expansion in a way that “doesn’t cause harm.”
-----
The US must fix its growing debt problems or risk a new financial crisis, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, warned on Tuesday, adding a mounting deficit could spur inflation.
Mr Hoenig said that rising debt was infringing on the central bank’s ability to fulfil its goals of maintaining price stability and long-term economic growth. “Stunning” deficit projections were putting political pressure on the Fed to keep interest rates low, infringing on its independence at the risk of inflation, he said.
The hawkish Kansas Fed president also warned against “dire” consequences of the central bank prolonging its holdings of mortgage-backed securities, which it purchased in an effort to prop up the US housing market. Mr Hoenig painted a picture of a slippery slope, where a less independent Federal Reserve was asked to find ways to support other ailing sectors, such as agriculture.
-----
Video: Peterson-Pew Commission on Budget Reform
Feb 17, 2010 at 10:24 AM
Reader Comments (10)
You have been warned – Fed Member Thomas Hoenig – Warns again …
Peterson-Pew Commission on Budget Reform
Peterson-PEW Commission on Budget Reform
How Afraid Should We Be of the Debt?
YOU ALL NEED TO BE HanGED "SADDAM STYLE" CRIMINAL TRAITOR RULERS
Food Stamp Hotline Run by JP Morgan in India
http://abcnews.go.com/Business/Economy/story?id=7452561
LOL-Nothing will happen. Who do you think owns the media?? Washington?
Ans: Goldman, JPM and all the other banks.
The US is no longer by the people. for the people. It's by Wall Street, for Wall Street.!!!
In the mean time US citizens are violated by the pin-striped criminals. Look what they did to Iceland, Greece, Spain and the US.
See, nobody goes to jail. Instead the criminals are bailed out and get bonuses.
They know the sheeple won't do anything.
End of Empire – Waking Zombie Nations
http://www.zerohedge.com/article/end-empire-waking-zombie-nations-psychology-consciousness-and-egoic-mind?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
A
USA working class Scammed, robbed and busted=NATION is BUST
OBAMA and His Master Wall Street Terrorist Bankers Plan.........LOL
Ohbummer a pathological liar spending US into oblivion
The frauds all know the $595 trillion OTC derivatives market is a complete disaster. They all know the corruption in rampant. So the plan is to keep spending and get the ! out of office before it all comes crashing down. Nice work, Mr. Hopelessly Corrupt.
http://www.washingtonsblog.com/2010/02/governments-have-admitted-that-they.html
Tuesday, February 16, 2010
Governments ADMIT That They Carry Out False Flag Terror
Forget the claims and allegations that false flag terror - governments attacking people and then blaming others in order to create animosity towards those blamed - has been used throughout history. This essay will solely discuss government admissions to the use of false flag terror.For example:
* The CIA admits that it hired Iranians in the 1950's to pose as Communists and stage bombings in Iran in order to turn the country against its democratically-elected president
* Israel admits that an Israeli terrorist cell operating in Egypt planted bombs in several buildings, including U.S. diplomatic facilities, then left behind "evidence" implicating the Arabs as the culprits (one of the bombs detonated prematurely, allowing the Egyptians to identify the bombers, and several of the Israelis later confessed) (and see this and this)
* The well-respected former Indonesian president admits that the government probably had a role in the Bali bombings
* The former Italian Prime Minister, an Italian judge, and the former head of Italian counterintelligence admit that NATO, with the help of the Pentagon and CIA, carried out terror bombings in Italy and blamed the communists, in order to rally people’s support for their governments in Europe in their fight against communism. As one participant in this formerly-secret program stated: "You had to attack civilians, people, women, children, innocent people, unknown people far removed from any political game. The reason was quite simple. They were supposed to force these people, the Italian public, to turn to the state to ask for greater security" (and see this)(Italy joined NATO in 1949, years before the bombings occurred)
* As admitted by the U.S. government, recently declassified documents show that in the 1960's, the American Joint Chiefs of Staff signed off on a plan to blow up AMERICAN airplanes (using an elaborate plan involving the switching of airplanes), and also to commit terrorist acts on American soil, and then to blame it on the Cubans in order to justify an invasion of Cuba. See the following ABC news report; the official documents; and watch this interview with the former Washington Investigative Producer for ABC's World News Tonight with Peter Jennings*
Beijing's trading partners complain 'Buy China' policy for tech sector might hamper trade
http://finance.yahoo.com/news/Beijings-Buy-China-policy-apf-2906094340.html?x=0&.v=2
(((((Our Bankers and Corporate Crooks outsource all to INDIA/CHINA)))))
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7252288/Greece-loses-EU-voting-power-in-blow-to-sovereignty.html
Credit markets flash hottest warning signal since crisis
European credit markets are flashing the most serious warnings signs in a year as the yields on risker bonds rise sharply and a string of companies cancel share flotations, raising fears that the recovery may falter in coming months
http://www.telegraph.co.uk/finance/economics/7251901/Credit-markets-flash-hottest-warning-signal-since-crisis.html
CIVIL UNREST IN USA : TIME LINE NOV 2010 -2011 ROCK SOLID PREDICTION
Here is an example of what I am talking about:
Scott Veerkamp / Predatory Lending (Franklin Township School Board Member.)
Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM."
The Center for Responsible Lending says YSP "steals equity from struggling families."
1. Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. 2. This is an average of $5,000 per loan. 3. The median value of the properties was $135,000. 4. Clearly, this type of lending represents a major ripoff for consumers.
http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F