He said he believes the financial markets will react negatively to the downgrade of the US credit rating, and will take "a while" to settle. "Considering the momentum in which the market went down over the last week, it's very unlikely -- if history is any guide -- that this isn't going to take awhile to bottom out."
Most interesting, however, is that Greenspan admitted that Congress, the President were using phony numbers that downplay the deficit problem. Said Greenspan:
This deficit problem that sits out there is much larger than we've been calculating, because the actual numbers employed by those who are calculating the deficits are based on a level of economic activity which we are not achieving.This is an awesome confession. I have never heard anyone so close to the center of power speak so much truth. Perhaps, in the winter of his years, with nothing to lose other than a blemished reputation, he is turning towards truth. Greenspan then went on to spill even more beans and point out that the Federal Reserve can print up any amount of dollars it chooses:
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. There is zero probability of default.Watch the clip below it shows Greenspan's last statement about money printing, and the priceless reaction on the face of the current Chairman of the President's Council of Economic Advisers, Austan Goolsbee, who looks like he just heard Greenspan spill on national television secrets that are never ever to be discussed in public, never mind national television.
What struck me were the comments on the CNBC article, 76 of them, all but about 6 slammed Greenspan, the other 6 were trying to push traffic to websites to generate sales.
ReplyDeleteWhen the CNBS gang goes to gold - Rome's on fire.
He also understands that people around the world do not take kindly to dollar inflation...Starvation makes people riot (Imagine that...huh). The bankster terrorists were counting on inflation to get them out of this since they have deliberately destroyed any kind of economic growth in the West with their taxes and laws. I think they will accelerate inflation and use their armies and jails to handle the consequences.
ReplyDeleteWhen you have total domination in global firepower as the USA has, you may never have to default using a government gun-backed counterfeit racket where you can create an unlimited amount of so-called "money" at near zero cost. I guess you aren't suppose to let the tax livestock hear that on their idiot box though...Don't want the ants to realize they hugely outnumber the grasshoppers, right?
ReplyDeleteWell, duh. Of course the US can scribble some crap on a piece of paper and hand it to its creditors and call it payment because in the other hand is a gun.
ReplyDeleteI was in a business meeting and when ask where we would get the money to fund our project I scribbled 1000000 on a napkin and handed it to them. I said "That's what your government does...Why can't we?".
ReplyDeleteWe don't have guns and jails.
Greenspan is trying to get into HEAVEN!
ReplyDeleteGo Alan. The truth will set you free.
Now can we get some of the other banksters to confess?
Tim Geithner, Blankfein, Larry Summers, Hank Paulson, Bobby Rubin, etc.
LOL!
Hahahaha....Goolsbee looked like he just saw a family member get run over by a truck.
ReplyDelete