"under normal circumstances, deficit spending for short periods is of little consequence to interest rates or anything else. As history has shown repeatedly."
So are you saying these are "normal" cicumstances and "deficits don't matter", or are you saying we're no longer in "normal" circumstances.
Do deficits now and for at least the next five years constitute "normal" for you. They sure don't for me!!!
Don't worry - be happy - deficits don't matter.
or are you saying we're no longer in "normal" circumstances. Good question!
I am saying that I agree with Greenspan that the Congress must be more proactive in regard to the coming babyboomer draw down on social Security.
That would include reducing the deficits among other things, like changing the COLA's and looking at the retirement ages.
On this, I believe that Greenspan is repeating a warning that he has given for some number of years now, and he is, of course, right to do it.