Large government debt bears serious economic consequences: Bernanke

10:39, June 15, 2011      

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A large and increasing level of government debt relative to national income bears serious economic consequences, U.S. Federal Reserve Chairman Ben Bernanke said here on Tuesday.

"Over the longer term, rising federal debt crowds out private capital formation and thus reduces productivity growth," Bernanke said while addressing the 2011 annual conference of the Committee for a Responsible Federal Budget.

He urged Congress to raise the U.S. debt limit in "a timely manner" to avert catastrophic consequences.

Incorporated in 1981, the Committee is a bipartisan, non-profit organization committed to educating the public on significant fiscal policies.

Source: Xinhua
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