Ben Bernanke let his slip show at multiple points during his confirmation hearing today. First, as Ryan Grim reports, he echoed bank robber Willie Sutton in targeting nothing less than Social Security:
In testimony before the Senate Banking Committee today, where he’s seeking re-appointment as the Fed’s chairman, Bernanke called for cutbacks in Medicare and Social Security even as unemployment rises and the middle class is endangered.
Sen. Bob Bennett (R-Utah) sympathized with Bernanke, saying that, because of entitlement spending, “you’re going to be looking at a situation where the Congress will be unable to provide any kind of fiscal discipline because of the mandatory spending. That puts an enormous burden on your plate.”
“Well, Senator, I was about to address entitlements,” Bernanke replied. “I think you can’t tackle the problem in the medium term without doing something about getting entitlements under control and reducing the costs, particularly of health care.”
Bernanke reminded Congress that it has the power to repeal Social Security and Medicare.
“It’s only mandatory until Congress says it’s not mandatory. And we have no option but to address those costs at some point or else we will have an unsustainable situation,” said Bernanke [...]
Sen. Jack Reed (D-R.I.) followed Bennett and pointed out that “there’s only really two ways you can deflect this deficit, and that’s either by cutting expenditures or raising income taxes or other forms of taxes.”
Reed asked him if he could think of other ways, but Bernanke returned to entitlement money as the way to balance the budget.
“Willie Sutton robbed banks because that’s where the money is, as he put it,” Bernanke said. “The money in this case is in entitlements.”
Sounds like someone wants to see a cat food commission in the near future.
Bernanke likes to say that he’s not following the lead of his predecessor and getting involved in fiscal policy. But clearly, that’s not universal. He’s fine with talking about entitlement cuts to Social Security and Medicare. It’s when tax increases for the rich or on stock trades come up, that Bernanke demurs and says that Congress writes the laws.
Here’s another thing Bernanke felt compelled to discuss today:
Federal Reserve Chairman Ben Bernanke on Thursday threw cold water on efforts to push a major new fiscal stimulus package.
At his confirmation hearing for a second term as chairman, Bernanke emphasized that the government has spent less than half of the money in the $787-billion package passed earlier this year and that analysts are still determining its impact.
“Only about 30 percent of the funds have been disbursed,” Bernanke said. “It’s a little bit early to make a strong judgment, a little bit early to decide whether or not to do additional fiscal actions.”
Keep in mind that the Fed has a mandate to maximize employment.
So let’s tally that up. No second stimulus, no jobs bill, no public investment to deal with the worst hiring crisis since the Depression, no relief for a jobless recovery, but yes to cutting people’s meager Social Security benefit and their health care in their old age.
And this is what he’s saying when he WANTS his job back. What will it be if he gets it?
As Bob Corker said in the linked video, “I don’t think that Bernanke’s coming up on the floor that quickly anyway.” I can see why not. The Federal Reserve chair didn’t do himself any favors in the Banking Committee today. I expect resistance to his confirmation, from inside and outside the system, to only grow.
UPDATE: Sen. Jim DeMint announces through Twitter that he will become the third Senator to place a hold on Bernanke’s confirmation:
I will oppose Bernanke and hold his nomination until we get a vote to audit the Fed.
DeMint joins Jim Bunning and Bernie Sanders. The bedfellows, they are strange.




65 Comments

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His position is not only economically absurd, it is immoral.
Old people should live in poverty and die from not being able to access health care, but we can’t actually tax millionaires or unproductive, even harmful, transactions that benefit only his Wall Street buddies.
There is something about what is supposedly the richest society in the history of the planet not being able to care for its seniors, or find jobs for its people that simply does not compute. Unless, that is, your goal is to get ever richer by turning the rest of us into serfs.
Yeah.
Cut my social security, into which I’ve paid for 40 years.
That’s OK.
Just let me at the [Edited by Moderator. Do not go there and advocate violence] who do the cuts.
(((Helicopter Ben))) Not.
It’s pretty clear that Bernanke doesn’t represent my interests, so I’m putting a hold on him, too.
Wow!
Unbelievable!
How long until the Democrats start calling for cuts to SS?
I didn’t catch any of the hearing but I’m willing to bet Bernanke didn’t suggest that not spending for endless war might be a solution, did he?
You amuse me.
When they want to get castrated. If the Rs push this, they are finished.
The word war never crossed his lips.
Did you see my comment earlier about Cahnstance the guard cat?
They already have…no COLA for the next 2 years cause there’s no inflation doncha know?
Maybe Ben doesn’t want that low-paying, high stress job anymore and wants to go back to the banks, a conquering hero.
Either way it looks and sounds like more kabuki to me.
Thank you mods.
I sometime get out of hand.
Thank you for keeping within your boundaries.
Without you, I’d be free.
the nail has been hit on the head.
These days if you DON’T believe in conspiracies, you need a tinfoil hat!
I LIKED your comment!
Don’t blink or you’ll miss it.
Thanks, Kass.
You are the future.
Give every Social Security recipient earning under a gross total of 40k a substantial pay rise right now. Today!
Hey, does it occur to democrats that they could reclaim some of the populist rage ground claimed by teabaggers if they say NO to Bernake also?
Sucks to be an empire.
Fire this man!
Do they care? The two-party system is just as fixed as WWE. Has anyone NOT figured that out yet?
This money gets spent right away and is approximately 150% stimulative.
Precisely.. We need to yell this or something like it in order to combat the libertarian Koch Cato’s of the world.
Heh. So that’s why my son’s a wingnut. He was a pro-wrestling fanatic in his youth. Funny how I never put 2 and 2 together.
Echoing Cenk Uygur, “Hell no on Bernanke”
I think it’s time to hit the phones to our illustrious Senators tomorrow. Firestorm time.
Isn’t he the guy who just figured out reality? What took him so long?
The “Masters Of The Universe” obviously can only think short-term, like to their next quarterly board meeting.
Otherwise, they might see that with massive numbers of people retiring in the next twenty to thirty years, a real long term stimulus would be figuring out how to increase our paltry Social Security benefits and improve Medicare.
I agree with Professor Galbraith, who recommends lowering the retirement age as a great jobs program for younger folks as well.
I prefer to have older folks with extra money in their pockets acting as a constant stimulus, and living out their lives with dignity. The statistics say this group already has the most disposable income, but they’ve been under assault by the corporatists for years.
Man, am I paranoid to think that if Bunning and DeMint agree with something, there must be a downside to it that I’m not seeing?
I have now. That’s so cool. It’s said they can hear a flutterby at 50 feet.
They’re up to their usual obstructionism, only this time they’re obstructing something we also want obstructive. Think of it as realpolitik.
mmmm…an hour or so. They are setting up the argument. We have been had.
This is getting really ugly… the DEMOCRATS are our own worst enemies! Wars and Wall Street, assault the safety net… I have been paying into Social Security and Medicare for over 40 YEARS — this is MY MONEY he’s talking about. I paid it in and want it back, with interest.
Jesus H. Christ, the oligarchy isn’t even pretending any more. And they’re supported by the DEMOCRATS! Our guys, that we elected with tears and gratitude. Well, guess what? To hell with this administration. I’m so far left you can’t even see me, but it looks like the goddamn teabaggers are right. And this is one hell of a development.
Yup, we’ve been had.
Hmm. My comments aren’t appearing. Haz I been banned?
So what’s next, going after our teeth because “that’s where the gold is”?
What teeth.. stopped by the filling station today… Clerk in his 50′s who is always working… lost another one.
And by the way: Hey Barack, way to be a 1-term president.
Apparently among poor kids, tooth aches are a major detraction from paying attention in school.
Bernanke’s mutterings at his hearing today should be writ in letters 12 feet tall on every subway wall and spread thru out the land for ALL the teabaggin, right wing, thuggered phools and then for all the reasonable and sane people who love their country for all the right reasons to see.
Then, we should ALL join in and in the next few daze make a HOWL that would put Alan Ginsberg to shame.
This HAS to be the last, most utterly despicable, disgusting and 1% display of pure evil greed that we ever need to action on.
This is a disgrace to us all. He HAS to pay for it, we need to make our elected offals pay for it.
It THIS shit is not a rallying call for the masses of America, then we truly are numbed and dead and devoid of our own souls and can blame no others but ourselves.
Now, what do we do? Without forsaking HCR, that is . . . so that Bernanke is neutered, dethroned, deballed, declawed, dejobbed and not a shiny object to the HCR, at the same time.
We really, really, need to eliminate this fucker from his post. And the rest of our society, for that matter.
Fucking Harumph, and I haven’t Harumphed in a long time.
HARUMPH!!!!
Fuckin asshole Bernanke . . .
Oh, Hi Pups, how’s everyone today . . . . ;-)
No link, but someone recently told me Dentists are among the top financial contributors against HC reform… no idea how true it is. If so, they succeeded.
Our hero, Krugman, luvs him some Bernanke. Bernanke hired him at Princeton, and never shall K criticize B.
Seriously I don’t know what the think is left to take. Oh hey lets not touch those multi million dollar bonuses. It’s time for Ben to go!
I like yer thoughts, but I’d like to see a job stimulus for 55+ as a DEDICATED effort, for those of us there, and for those of us over who would LIKE to work into our 70′s and more . . . . . at living wages!!!!!!!!
Ya know? For those of us who DON’T have a lot of money put away, lost our savings, never had any. So we can be self sufficient as we head to our end time . . . but how to do that?
For instance, I’d LOVE a job thru my 70′s even at LOWER WAGES, if I could collect on what ever Soc Sec I can earn without any penalty!!! I’d be paying taxes on the job, and still contributing to the SS pool and the rest!
Then my lower paying job and my SS would afford me a somewhat decent life without worry of losing my rental space and being on the street from a loss of job, etc. Paycheck to paycheck is brutal, but it’s the ONLY life many, many folks know!!!
Add being 55+ to it all? Brutal . . . .
*uck Krugman, and the Chicago School Of Econ he and the rest of them rode into town on!
In a matter of speaking, that is . . ;-)
I prefer Black Swan and Dr. Doom!!!!! lol
Sucks more to be SERFS in an empire . . . even if yer serfitude is newly created by the empire.
so two REPUBLICANS join bernie!
WTF. I’ve been completely disgusted with Dems since long ago … howard dean was a great ride, wasn’t it?…
I’ve been disguseted with their incompetence or CORRUPTION against the fascists … and now we got republicans doing more for us than our corrupt doormats?
WHY do I give a f’k about Dems? I haven’t voted Republican since Silvio Conte in ’78 when I was 18 cuz I thought they were fascists …
I’m voting for my neighbors dog.
rmm.
The ironing continues to boggle all . . . but it’s way beyond political labels anymore.
It’s (the issues/problems/causes) top to bottom embedded in our nation, culture, society and government.
Fully embedded.
That’s a lotta change to need . . . . a lotta change.
Sounds about right. I’m guessing Social Security “reform” or “privatization” is next on Obama’s agenda. It’s the logical next step after his health care “reform.”
And more war/occupation.
Tell Bernanke about the job prospects for people over 50 who don’t work as banking and investment executives, or as congresscritters. Then ask him if he and Congress want to be among them.
Sanders, Bunning and DeMint. The political spectrum has finally become a Moebius strip. The extremists have intersected at a point that makes sense, and it’s the mainstream politicians that are batshit.
At least about Bernanke…
For this news cycle…
‘Kin bingo, we are of like minded purpose.
I REFUSE to believe we the people will allow for a frontal assault to be successful on SS or abortion.
I just refuse to believe that we the people are THAT, that, that . . . whatever.
Am I naive? Or just stupid, myself . . . .
I don’t see any reason that the hue and cry this time will be any less than when Shrub tried it. Lot of Baby Boomers have just started drawing their SS at the minimum age.
Perhaps that will be a general rallying cry to unite more and more masses about all the other issues we the people are under seige of from the 1% . . . . so far . . . cricketsville in the streets . . . . in mass quantities, that is.
Hmmm . . . Cone Head Rebellion? ;-)
how can you be politically incompetent, OR, a sell out, if you stand up for peee-ons? silly silly!
rmm.
“Bernanke reminded Congress that it has the power to repeal Social Security and Medicare.”
Not to mention fire Bernanke, abolish the Fed, nationalize the banks…
Actually, it’s not unreal because when he was a Senator from Illinois, Barack Obama gave the opening ceremony speech for the Goldman Sachs funded Hamilton Project. In that talk, Obama lavishly praised Goldman’s head, “my friend Bob” Rubin. Obama went on to call for unfettered free trade AND cuts in entitlements. This was about 3 or 4 years ago and a diary was written about here at Firedoglake (type “Hamilton Project” and “Obama” into Google and you will see it).
We have to face reality: much of the Democratic Party represents positions that are really Republican in nature, including Obama. That’s why he immediately dumped almost every major campaign promise he ran on and looks and sounds like a Rockefeller Republican.
Oh, and this: Obama stands firmly behind Bernanke.
Yep I wasn’t paranoid until DeMint joined in – now I’m thinking the downside could be – the Repugs know that if Bernanke is out – Summers or Geithner becomes the new Fed Chair. I cannot even imagine that horror.
“In testimony before the Senate Banking Committee today, where he’s seeking re-appointment as the Fed’s chairman, Bernanke called for cutbacks in Medicare and Social Security even as unemployment rises and the middle class is endangered.”
And remember, kiddos, spending tax payer dollars on rescuing banks and Wallstreet is capitalism. Spending tax payer dollars on the payers of those taxes is socialism…
All I can say; thank God for Republicans. Were it all up to Obama and the Democrats we’d get shafted big time.
Take a page from the GOP senator from Kentucky, the Federal Reserve Board has been taking money from both the right and left for 96 years.
Ben is as right as a stuck clock, the only bigger Ponzi scheme than social insecurity and medicare is the Federal Reserve Board.
The US increased Social Security spending 70 Billion last fiscal year and increased Medicare and Hospital aid by 100 Billion last fiscal year. Zeroing the Defense budget would cover about 4 years worth of that kind of growth.
Wow. Total fiscal conservative talk, dressed up with faux balance. “The crazy right wants to cut everything and kill everyone’s babies. The American people expect endless hand outs from the government bleeding it dry. I’m a pragamatic ‘liberal’ and am somewhere between. We need to cut the social safety net a lot, but not completely. That would just be crazy. Thanks again to my friend Bob Rubin for inviting me. Good bless the free market. Good night.”
http://firedoglake.com/2008/02/13/the-hamilton-project-same-corporatist-whine-in-new-dlc-vessels/
Go screw yourself Bernanke and Nutmegers get on the phone and tell Dodd, a vote for Bernie is a no vote for him. So, seniors can eat cat shit while Bernie and his billionaire friends sail into the sunset. How can Congress seriously look this man in the face and consider such a narcissist for this post. The man is hateful.
So let’s see….hummm..it’s OK to spend a TRILLION DOLLARS to continue to kill folks in the middle-east BUT spending money here at home to take care of Americans is absolutely off the table…I got it… SCREW YOU !!!
Who does DeMented want in the job-Dick Armey or Phil Gramm?