New York (CNNMoney.com) - Policymakers must put in place a credible plan to bring federal spending in line with revenue sooner rather than later to close the "unsustainable fiscal gap" that threatens the economy, Federal Reserve Chairman Ben Bernanke said Tuesday.
Bernanke delivered his message to President Obama's 18-member bipartisan debt commission, which is holding its first of many meetings that will take place over seven months.
"The path forward contains many difficult tradeoffs and choices, but postponing those choices and failing to put the nation's finances on a sustainable long-run trajectory would ultimately do great damage to our economy," Bernanke said.
Obama echoed that sentiment in comments made at the White House before the meeting began. The present fiscal situation, he noted, "will require that we put politics aside - that we think more about the next generation than the next election. There is no other way."
Congress do your job and audit the Fed! Are you the representatives of the people or the banks?
Audit the FED!
Too bad nobody took the deficit seriously ten years age. I remember the debate between Bush and Al Gore. Bush said he would fix Social Security, keep paying down the national debt, and cut taxes. I guess one out of three is good enough when a Repug is runnig the show.
Question where was the Chairman of the Federal Reserve when President George W. Bush was in office?
I have to love these Republicans who only think of all this massive spending when we have a Dem in the White House?
GET SPENDING IN LINE WITH REVENUE????????
Are you kidding?
How can Obama continue the implementation of his socialist agenda if he is not allowed to institute unsustainable entitlement programs?
Just because the American consumer went on a similar spending binge a few years ago and are now are getting thrown out of their houses is no reason to think that the same thing could not happen to the federal government.
On second thought, the same thing can happen to the federal government because that is exactly what is going in Greece right now.
And soon to be followed by Portugal, Italy, Ireland and Spain....all of whom are socialist governments.
"credible plan to bring federal spending in line with revenue" that's what we've been asking our government for for several years.......it took the current admin. to push us over the line to form the tea parties.
I'm still waiting Mr. Bernanke. Why should anyone trust you to help guide our way out of this crisis when it was your orgrnization being asleep at the switch that added to the problem? And you have the gaul to say you should keep this power and not allow anyone else to have over site? What were you doing while Rome burned and your fatcat friends were making out like the bandits that they are?
No way will I trust you. We made a serious mistake allowing you to keep your job.
Wow! Bernanke making sense for a change!
Of course, what Obama and the far-left will try to do is reverse Bernanke advice–they'll look for ways to get revenue in line with spending, i.e., raise taxes.
How do you bring revenue in line with spending when spending has gotten so out of control?
How can obama tell those "voters" no more free lunch and get elected again?
You can only tax the rich so much and since their tax dollars are now being used to pay for all these give-aways, they are not there to invest in the economy and businesses.
Way to go obummer!!!!
You are destroying the country.
That is how us little people have to live! We have to budget and pay the bills with what we bring in. So in short, since this is common sense, it probably won't pass muster in DC!
The economic report released last week by Health and Human Services, which indicated that President Barack Obama’s health care “reform” law would actually increase the cost of health care and impose higher costs on consumers, had been submitted to the office of HHS Secretary Kathleen Sebelius more than a week before the Congressional votes on the bill, according to career HHS sources, who added that Sebelius’s staff refused to review the document before the vote was taken.
Obama...noted, "will require that we put politics aside – that we think more about the next generation than the next election. There is no other way."
Why start now? Oh yeah...you have already crammed the Stimulus Bill and ObamaCare through. Now you start talking about concern for the next generation and putting politics aside? That is the argument against ObamaCare. Will he admit now that it was a mistake and we can't really afford to throw this kind of money at another entitlement?
Thank God,there is someone with a brain!
I'd suggest cutting our outrageous "defense" budget, but I'd be labeled unpatriotic or perhaps a socialist. How dare I suggest we abandon an eternal state of warfare on "terrorists?" After all, our oil is trapped under their sand, you know. Have a nice day!
Can you imagine ,someone still left in American government, that could come up with such a brilliant statement?
Wait a minute, are you saying Obama just wasted four trillion dollars and we got nothing for it.
Get your carcass out of this country's fiscal policy and take the entire Federal Reserve with you. It is not federal and it is not a reserve. Liars!
Now there's a radical concept; the government should stop spending money it doesn't have rather than borrowing and taxing to add more entitlement programs.
A call to get spending in line with revenue. I guess that mean we have to pay more revenue. Hello VAT tax. NOT!!!
Stop the spending, stop big government. Let the free market do it's thing, make money and jobs!!!!
shouldn't mr. bernake have made this speech 3-4 years ago while the bush administration spent us into a deficit??? let's start telling people that they wont graduate high school (when they're like 25 yrs. old)
A combination of cuts and increased revenue is exactly what it's going to take go get our debt under control. Unfortunately, there are many Americans who don't have any clue where the vast majority of the dollars go. I see people in the Tea Party rallies that are obviously old enough to be collecting social security and on medicare. Don't they realize that what they are getting is part of the problem they're protesting against? Ugh. As someone who has worked on both the government and private industry side of Defense, I can say with great confidence that we can cut military spending without affecting our national security. We spend over $700 billion per year on defense. That's more than Russia, China, and another dozen countries combined. We need to be much smarter about how we use our money.