As the TARPs and TALFs do their thing to try and stabilize the economy other fears surface.

Wall Street got theirs ….to the tune of about $1 trillion…..The Auto Industry got theirs…..billions…Banks got rescues and now some want to repay their loans from the government.

But recently the Fed chairman has said as reported by the AP:

Federal Reserve Chairman Ben Bernanke on Wednesday urged Congress and the Obama administration to cut record-high budget deficits, warning that they could erode investor confidence and endanger the economy’s long-term health.

Bernanke’s comments came as concerns grow at home and overseas about the United States’ mounting red ink.

“Even as we take steps to address the recession and threats to financial stability, maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance,” Bernanke told the House Budget Committee.

The White House estimates that the government will rack up an unprecedented $1.8 trillion budget deficit this year. That would be more than four times last year’s all-time high.

Now that all the speculators have gotten their pound of flesh, Bernanke is concerned with the control of the growing deficit.  You know what that means, right?

Where will the government cut to help in this control?  Stim money…nope.  Nowhere but entitlements…you know those programs for the elderly and the poor….like Social Security and Medicare come to mind readily.  Fiscal conservatives, both Repub and Dem, will be screa,ming for some sort of deficit cutting measures and soon.

Wrting for wsws.org, Barry Grey analyzed Bernake as such:

The phrase “confidence of the financial markets” is a euphemism for the interests of Wall Street and major international banks and investors. In demanding the preparation of austerity measures to be imposed on the American people, Bernanke was speaking in behalf of the financial elite whose massive taxpayer subsidies have been the major cause of the explosive growth over the past year of the federal deficit and the US national debt.

Warning that a continuation of such levels of debt could drive up the cost of government borrowing—a disastrous prospect for an economy dependent on a continuous stream of loans from China, Japan and other countries—Bernanke said that the deficits would have to be reduced substantially either through tax increases or budget cuts. “The Federal Reserve will not monetize the debt,” he declared.

He made clear that his prescription for “fiscal balance” was dramatic cuts in what remains of social programs, rather than tax increases. He zeroed in on the basic programs upon which tens of millions of Americans depend—Social Security and Medicare.

Of course these programs will be on the chomping block…why?….reps have a great retirement and medical and such and their programs will not be effected.

Once again Main Street will be the victim of the government, while Wall Street gets all the consideration and perks.  When will we ever learn?