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While Staten Island isn't the only area -- federal spending has run amok.
Fed chief Ben Bernanke on Capitol Hill today telling congress the Fed intends to keep its easy money policy slowly.
Until the job market picks up.
He also warned against that cross the board spending cuts set to hit on Friday joining me now.
Congressman Jeb canceling a leading conservative and chairman of the house financial services committee.
Which we'll hear testimony from Bernanke tomorrow welcome back to the show it's great to see you against congressman to.
They generally the Federal Reserve -- -- balance sheet of three trillion dollars is that a good idea.
No if it ever was a good idea is certainly is not a good night did now we -- we've reached the limits of what monetary policy can do.
In all this extra money that they're trying to throw into the system.
And creates an incredible inflationary.
And there's very little benefit because all this money -- ending up as excess.
Reserves but at one point we help the economy is gonna take off.
And if Ben Bernanke can't be -- -- -- and get us out of this trap we're gonna have you know an inflation and make us look.
The -- -- the -- deeply on the Carter area in other words there's almost no benefit in there's an incredible risk.
And to this policy we have reached the outer limits of what monetary policy can do.
Well I hit bottom -- is.
Congressman every up.
Federal Reserve everything in every country element world is doing the same thing their mimicking Bernanke ultimately -- -- this you know you're right.
-- doesn't mean it's a good idea.
You know got a nine year old son enough seem to be eleven year old daughter they always tell me -- everybody else is doing it would just because everybody else doing it doesn't mean.
It's a good idea.
You know we're drowning in debt it does it mean it's a good idea again that -- the challenges that our economies face today are fiscal -- nature.
You know the president -- insure that we raise taxes on small businesses entrepreneurs and job creators tearing lives in.
We've had a 53%.
In the regulatory burden.
I want well that's absolutely true -- -- gets back to Bernanke though for just a second.
In this and it.
Humphrey Hawkins testimony today they -- an interesting question and it was about.
Backing for a large banks in this country.
Some 83 trillion dollars.
83 trillion -- to Nike get over that number.
It's an implied.
-- too big to fail cushion from the federal government which basically says we -- behind you for that reason banks pay less money in interest rates this have always helps their bottom line.
And now wouldn't really do the math what you find out is that these banks wouldn't even be making money if it wasn't for the backing of the federal government this implied backing.
Will you be asking the chairman about this tomorrow.
Well we have a limited amount of time to asking a lot of questions I don't Chris know -- the precise figures but the bottom line is Dodd-Frank didn't end too big to fail Dodd-Frank.
In codified too big to fail.
Number one we now I have the federal government -- the ability to designate.
Certain firms is too big to fail.
And then Dodd-Frank sets up this thing called the orderly liquidation authority -- essentially allows the FDIC to -- take taxpayer funds.
Two I believe it's 9% of the balance sheet of these too big to fail firms.
And an end in use that to resolve the firms and so is chairman of the financial services committee ice here you we are going to deal -- too big to fail.
And we will introduce legislation to terminate.
-- both this designation.
-- is -- these significant.
And it it you know financial institutions and -- in this orderly liquidation authority.
There's something wrong in America with some institutions are too big to fail and others are too small to matter.
Right and it certainly hurts those small banks lots of frustrations about.
And and not just in Washington all over the country I think voters are so tired of hearing about the fact.
That congress and the president can't get together and make some product process not progress that is on these very important issues.
John Boehner today speaker of the house expressing his frustration with -- what's going on here's the speaker.
We should not have to move of third bill.
Before the senate gets off their -- billions to do -- And that was that to the point.
And I don't support for all what do you think about -- Well I couldn't agree with the speaker more -- -- my mother's not watching tonight we're gonna come from language.
But the bottom line is we have the United States in a dead even bothered to pass a budget in four years dominated by the Democrats.
The president is still as it submitted his budget legally he was -- submitted.
This house has passed twice twice a bill to ensure that we keep with the deficit reduction levels but we don't do this crazy across the board.
Cuts that doesn't they didn't prioritize but the president doesn't have a plan.
The city hasn't passed a plan well and by the way the president the president talks about a balanced approach well guess what.
In early January he -- 660.
Billion dollars of new tax revenue.
Before the election it was all three to one well so we've -- are not going to go very my name.
You know words are one point 481 point eight trillion budget savings you know it's a shell game.
So it was the president's plan to put these across the board cuts is enforcement mechanism.
-- -- he's trying to get more tax increases before he's even paid for the old ones that he got.
And so this clearly rests on the president's desk.
-- -- -- -- -- will be watching you tomorrow with that the testimony from the Fed chief and see what questions you actually do ask thanks for coming on.
I tonight congressman canceling appear appreciate your time thank you thank you --
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