Guess what Bernanke is now suggesting as a good way to control federal spending?
Yes, you guessed it: eliminate the debt ceiling, the only thing that even remotely slows down federal spending.
Today’s Fed finances the US government, no questions asked, as the government spends itself into bankruptcy. If the Fed disappeared tomorrow, so would the budget deficit because the government could not borrow enough in real markets at low enough rates to keep it all going.
So Bernanke was quite in character with his latest proposal.