Maybe he can’t take the pressure of running the AFL-CIO, or maybe it was something he inhaled when he was working in the mines, Richard Trumka head of the AFL-CIO has lost all touch with the real world. In the video below the union bigshot is being interviewed for the C SPAN Newsmakers program and says there is no deficit problem in the US, its all made up by the Republican spin-masters. (if you cannot see video below click here)
Poor Trumka, he must be losing it, and can no longer separate fact from fiction.
Along with dozens of major economists,even the Fed Chair Ben Bernanke who closed his eyes to the housing bubble recognizes that there is a deficit crisis. The Fed chief said in testimony before the House budget committee Wednesday that “the federal budget appears to be on an unsustainable path.” Not for the first time, he urged Congress to take action to close “a structural budget gap that is both large relative to the size of the economy and increasing over time.”
The Congressional Budget Office is also warning about the deficit.
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With U.S. government debt already at a level that is high by historical standards, and the prospect that, under current policies, federal debt would continue to grow, it is possible that interest rates might rise gradually as investors’ confidence in the U.S. government’s finances declined, giving legislators sufficient time to make policy choices that could avert a crisis. It is also possible, however, that investors would lose confidence abruptly and interest rates on government debt would rise sharply, as evidenced by the experiences of other countries. Unfortunately, there is no way to predict with any confidence whether and when such a crisis might occur in the United States. In a brief (“Federal Debt and the Risk of a Fiscal Crisis“) released today, CBO notes that there is no identifiable “tipping point” of debt relative to the nation’s output (gross domestic product, or GDP) that would indicate that such a crisis is likely or imminent. However, in the United States, the ratio of federal debt to GDP is climbing into unfamiliar territory—and all else being equal, the higher the debt, the greater the risk of such a crisis.
Don’t feel bad for Richard Trumka if his dementia continues, I am sure that the Union Pension plans will take care of him…OOPs they are going bankrupt aren’t they. Well then maybe he could start making a living as a Dick Butkus impersonator, as long as he doesn’t start talking.