Posted on 08/07/2011 1:32:21 PM PDT by i88schwartz
ormer Chairman of the Federal Reserve Alan Greenspan explains how the United States can pay down the debt. By printing money. Transcript:
David Gregory, moderator of "Meet The Press" on NBC: "Are U.S. treasury bonds still safe to invest in?"
Alan Greenspan, Former Chairman of the Federal Reserve: "Very much so. This is not an issue of credit rating, the United States can pay any debt it has because we can always print money to do that. So, there is zero probability of default."
Greenspan says the S&P downgrade was just meant to hit a "nerve" and hurt the "self-esteem of the United States."
(Excerpt) Read more at realclearpolitics.com ...
And who do you think would be the most irate about a falling dollar?
The Chinese, because it harms their exports.
And they are the ones we are indebted, too.
I know we’re indebted to Japan, but they are too busy treading water with a brick in each hand to worry about.
But the ChiComs will be pissed.
And if we try to pay them back with these worthless dollars, they are going to be even more pissed.
And they are going to want something in exchange.
Don’t doubt that we will drill our reserves at that point and send them to China. It’s either that or they take our real estate or we go to war when they take Taiwan and any other Pacific country they feel they are entitled to.
His irrational exuberance must be acting up then.
Actually, in his very early years, he was a gold bug and believed the US Dollar should return to a gold backing.
Hard to believe, huh?
Yes, it is. And, unfortunately, it's very mainstream thinking. These Keynesians (and the Monetarists aren't much different) see money as a neutral commodity the quantity of which can be scientifically calibrated so as to cause only good to happen.
They really believe in those equations. The equations in which we are nothing but little variables.
The iberal wife effect: see also Gingrich, McCain, and Goldwater.
Heck, I think I’ll get us a really good printer and make more money too. What a dipstick.
Quantative Easing here we come, eh?
Got to remember also, China is also SCARED because their economy is also one that has been for YEARS been built on a HOUSE OF CARDS BIGTIME.
We almost are paying $5.00 a loaf...
Yes, you are right.
They also have at any given time (thanks to their abortion policy and preference for boys over girls) 10-15 million young men ages of 18-25 who have no chance of ever marrying and having a family.
Thus, according to the state, they are fully disposable. And, according to the state, it is ‘prudent’ economically to remove them from the economy.
Thus, the ChiComs have a terrifyingly large army that they want and need to dispose of, and that army, when they are released, know that they have nothing to lose and everything to gain.
Next question after that stunningly stupid statement should be,
“So why don’t we print $5,000 trillion and purchase the entire world, or at least forgo collecting taxes and just print the money???? Well, Mr. Greespan, please explain.”
Way past his sell by date.
ping
Heh, the captioning was mine, but...she does look really irritated, doesn’t she? I don’t recall how, but she appeared at the rope for some greeting line. That is probably why the mental midget looks pissed...she probably couldn’t get some kind of special treatment...:)
Heheh, now THAT’S funny!
This is not even technically true (so, technically it’s a lie). This “printing money” also involves the exchange of debt and so, increases the debt yet more by it’s very nature.
Greenspan is right. The Federal Reserve can always print money to pay a debt, but that does not mean that the debtor will be willing to accept the printed money. They want rampant inflation because they plan to pay off the debt with cheap dollars. The Chinese probably will not accept them.
No one in the media will call them on their folly. The tea partners tried, but they won’t be content until they run the ship aground.
His association with Ayn Rand was always way over-rated, over-sold in terms of his thinking.
He is after all the originator of the cheap dollar, low interest rate, printing-press-dollar "liquidity" that supplied the fuel to the housing market bubble, which Bernanke did not try to end before it was too late.
The media gave Greenspan his phony mystique that he was some kind of "free market" economic guru. He wasn't, "free market" economies are hurt as much by cheap, devalued printing-press money as any other economy.
Ayn Rand would have known that.
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