Bernanke has been devaluing and printing dollars to prop up Obama’s stagnant economy.
(Reuters) – There are limits to how much aid the Federal Reserve can provide to the U.S.economy, Fed Chairman Ben Bernanke warned on Wednesday as he urged politicians to tackle a year-end fiscal cliff that could derail the country’s gradual recovery.
The worst economic recovery in US history.
“We have innovated quite a bit in the last few years, and (it) is always possible we could find new ways to provide support for the economy,” he told a news conference after the Fed announced another round of bond buying to spur growth.
Innovated means printed and devalued the dollar.
“But it is certainly true … that with interest rates near zero and the (Fed’s) balance sheet already large, that the ability to provide additional accommodation is not unlimited.”
The U.S. central bank announced it would keep buying $85 billion of Treasury and mortgage-backed bonds a month until it saw a substantial improvement in the outlook for the labor market. Its balance sheet would increase to almost $4 trillion by the end of next year if it kept up that pace of purchases.
$4 trillion in printed money + $6 trillion from Obama 1st term = record national debt & higher unemployment.
Bernanke said it was “critical that fiscal policymakers come together” to deliver a package of spending cuts and tax revenue increases that would help lower the deficit without stalling the recovery.
He acknowledged that the Fed would try to do what it could to offset the negative consequences for the economy if it did go over the fiscal cliff, and would “perhaps increase a bit” the support that it was able to provide businesses and households.
Translation=fire up the presses.
“But I just want to again be clear, that we cannot offset the full impact of the fiscal cliff. It is just too big, given the tools that we have available, and the limitations on our policy toolkit at this point,” he said.