In the video below Rep. Neugebauer Questions Chairman Bernanke on Debt Saturation. What the Rep. does NOT understand is that debt is currency, so if the private sector is not willingly taking on more debt, then the FED & government must step up their own debt creation otherwise the whole debt based currency system would end. –which if you are prepared is not a bad thing. And it is an eventuality so you must be prepared.

Bernanke is either ignorant or being deceptive in his reply that the FED will ever sell back enough securities bought into the open market and return to their previous balance sheet. If they ever do that, the FED would push rates up, making their own balance sheet insolvent, and bankrupt the government rendering the government unable to pay the interest alone on the national debt.

Bernanke also tells the motive for their actions; to affect people’s behavior, push investors into certain assets classes.