[familyofman]

Someone has to inform Greenspan about the fact that "deficits don't matter".

[Cold Heat]

Someone has to inform Greenspan about the fact that "deficits don't matter".

They generally do not, but Greenspan's worry is the baby boomer retirement that is just around the corner. High deficit spending would not be the thing to have when adjusting to the sudden increase in outlays at that time. that is what he has consistently harped on and warned congress about.

under normal circumstances, deficit spending for short periods is of little consequence to interest rates or anything else. As history has shown repeatedly.

[brownsfan]

Someone has to inform Greenspan about the fact that "deficits don't matter".

Really? Can you give me references? That's really a counter-inituitive concept. If government incurs a big debt, and then must service that debt, less is spent on programs, and more is spent on servicing the debt. So, in order to feed it's ever growing hunger, the government will raise taxes. At least that's my understanding.