In what appears to have sparked precisely zero response from the commentariat, Ben Bernanke's remarks earlier this week should have reminded all of us that we do have options other than printing money to solidify the shaky U.S. economy. I would call your attention to the last two paragraphs of this article, quoted in toto:
In his appearance on Capitol Hill, Bernanke urged Congress to do three things to put the budget on a sustainable long-run path: avoid the “fiscal cliff,” reach deficit-reduction goals and use tax policy to grow the economy.
“At best, rapidly rising levels of debt will lead to reduced rates of capital formation, slower economic growth, and increased foreign indebtedness,” Bernanke said. “At worst, they will provoke a fiscal crisis that could have severe consequences for the economy.”
I'm not the one opining about "a fiscal crisis that could have severe consequences for the economy." That would be Federal Reserve Chair Ben Bernanke. Just wanted to make sure you understand that.
A few thousand miles away from us this evening, the Euro Zone agreed to a banker bailout deal whereby the Spaniards get a loan roughly equivalent to 10% of their GDP to shore up their banks. The crew over at ZeroHedge break it down for us, capping their story with one elegant headline: Spain IS Greece After All.
And why should we in the Suburban Dad Nation care about Spaniards and Greeks and their rotting economies? Rachel Epstein provides eight reasons why. I find reasons six through eight most compelling.
We live in a global world. What ails our largest trading partner effectively ails us. Prepare accordingly.