Bernanke Warns Lawmakes U.S. Headed For "Massive Fiscal Cliff"

Bernanke warns lawmakers country headed for 'massive fiscal cliff' - The Hill's On The Money

Ben Bernanke, Chairman of the Federal Reserve

Ben Bernanke, Chairman of the Federal Reserve, warned lawmakers on Wednesday February 29, 2012 that Congress risks taking the economy over a "massive fiscal cliff".  He told lawmakers that 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 2013.  Under current law on January 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.  According to Andrew Fieldhouse, a federal budget policy analyst with the liberal Economic Policy Institute, "The tax hikes and spending cuts could knock GDP growth in 2013 down from 2.6 percent to to 1 percent." 

Congress desperately needs to reduce spending drastically, however, most of the proposed spending is in the way of defense cuts.  I believe there needs to be a realignment in spending priorities in the Pentagon.  The spending for the wars in Afghanistan, Iraq, and Libya need to end.  All the troops need to be pulled out of Afghanistan and Libya.  Many of the U.S. troops need to be pulled out of countries where the U.S. has no vital national security interest.  Also, any wasteful defense spending that serves no purpose for military readiness needs to be eliminated.  However, we still need a strong national defense.  The dollars need to be spent more wisely when it comes to protecting America's national security.  The problem with the proposed spending cuts is it would severely cut the military.  We need a strong military but the dollars need to be allocated properly.  There are all sorts of spending cuts that need to be enacted, but the GOP House refuses to do such.  The GOP House could defund Obamacare and stop allocating money for pet projects and the growing government bureaucracy. 

One projection I will make is the tax cuts won't be renewed at the end of this year nor made permanent.  The Republicans aren't going to do what's right for our country.  This is no time for tax hikes, esp. when many Americans are still unemployed and inflation keeps rising.  Major spending cuts in the right areas need to be take place along with keeping the Bush tax cuts in place.  Also government regulations that hinder the private sector from prospering needs to be eliminated.  Instead of growing government, we need to grow the private sector so America can once again can be a strong, independent, and prosperous country. 

Consequently, that won't happen because that's not the goal of the Federal Reserve nor the Barack Obama administration.  The goal is to destroy capitalism and transform the United States into a socialist country.  That's the goal of the elite planners.