It is truly pathetic if Alan really believes this is a solution.
We already don't have gold backing all of the printed money we have out there - and our coins have become mixtures that contain less and less of the original metal that was considered of value.
Eventually our money becomes worthless when there's nothing backing it - it's like building a house with no foundation under it.
We can print more money as long as we do what a bunch of other countries just did and ban short sales since shorting is really the engine that drives hyperinflation. As for Greenspan, as a member of Ayn Rand's cult, it's a travesty that he was put in charge of the Fed and a miscarriage of justice that he wasn't institutionalized like all hardcore Objectivists should be.
__________________ Land of the free, home of the brave...
Do you think we will ever be saved?
In this land of dreams find myself sober...
Wonder when will it'll all be over...
Living in a void when the void grows colder...
Wonder when it'll all be over?
Will you be laughing when it's over?
Gender: Unspecified Location: With Cinderella and the 9 Dwarves
Well, it seems like he's mainly arguing that there's zero probability of the US defaulting. Which is true. I don't think he says that's his suggestion of dealing with it though. Would be interesting to see what he goes on to say and what predated it.
Though, I do think that he's missing the point, cause obviously buying bonds is not a smart option at all if your interest is eaten up by inflation.
I've said it before and I'll say it again, America owing debt is BS, it's like the biggest toughest bully in school owing the the weakling $2.00. Will the US ever have to pay all out? Likely no.
Well over half of the US debt is owed to America/Americans/American institutions. So there's a nice huge chunk of that 14 trillion America can float indefinitely. The other 35-40% is owed to nations that both can't force America to pay and/or can't afford to severe relations and/or trading with the US.
the way debt has hijacked American politics is very strange. I'm not saying national debt is good, but it certainly doesn't present near as much of a problem as other issues, even within the economy...
Then again, lots of people still believe (wrongly) that the recession was a result of too much government or personal debt, so there is that....
"We" as in the country, not you, me and your mailman.
Though considering it's Greenspan, maybe he was using a nosism, ie the royal "we" and plans on printing money in his basement for personal use. Wouldn't surprise me.
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Aug 17th, 2011 02:07 AM
