Greenspan: US Can Pay Any Debt It Has Because It Can Print Money To Pay It

Wow, anyone serving time in jail for counterfeiting is probably banging their head off their cell bars after watching that one...

Greenspan's correct, though.

They can simply print more money to service and/or pay off the debt. So a US default isn't going to happen.

So he isn't lying.

But he is misrepresenting by omission, because he doesn't tell his audience how such a policy will affect prices, wages, interest rates and all the rest. He's so dismissive of the concerns of John Doe, he doesn't even mention the ordinary people. In fact he's so dismissive in his attitude, you'd think he were addressing a Fortune 500 Chief Execs meeting, rather than speaking to ordinary people in their own homes.

He doesn't care. He's got his fortune, what's for him to care about ?

Sometimes I wonder if the US prints it's money with the attitude it does because it knows it's somewhat untouchable for the moment with it's powerful military and Nuclear weapons, that no one can say otherwise because our currency can wipe a city off the map.

reply to post by yourmaker


I think that is precisely what the thinking is and where the overall mindset comes from. #1 is the golden rule and #2 is rule by force. The U.S. has traditionally had both by a wide margin since the 40's. We lost #1 when Nixon so cleverly took us off the gold standard and made this end result inevitable. We're losing number #2 by some gleefully looking to budget cut the U.S. military into 3rd world status or simply exhausting it so badly in the wars around the Middle East, there is nothing left. Either way, I think we'll start watching the world get a bit wild now.

Rofl...they don't even care anymore...he just flat out admits to it...yeah...we print money out of thin air...what you gonna do about it?

Economy, not debt rating, will send markets lower


here is another good confusing article on what is going on its worth a read it only makes me believe things may be worse than they are implying. I also think they might be putting on a show to scare everyone.

guess we will have to just ride this out until it gets worse or better. or until they print so much money that we will all need duffel bags just to carry our paper bills around.

_The first reports on the economy during the third quarter have been mixed. Manufacturing, which helped pull the economy out of the recession, fell to its weakest level since July 2009. That was the month after the recession officially ended. The Labor Department said 117,000 jobs were created last month. But that came after 99,000 jobs were created in May and June combined _ and 250,000 new jobs are needed each month to reduce unemployment.

Think I'll try Greenspan's stragety with my bills, see how well that works out for me. Here's CNN trying to explain it. The ending is just hilarious. I'm still laughing about it.



youtu.be...

reply to post by Kords21


OMG First things first Greenspan should be Exiled for that statement....but the look on the guys face next to him was priceless absolutely priceless! and then the video of the guy doin the Arsenio Hall LMFAO this is what I needed before bed hahah thanks guys for the laugh!

Originally posted by Chrysalis
I find he was just beeing blatantly honest about what he thinks. For once you get to know what they really think.
Maybe because he knows that the cake is about to explode.

On another segment, I saw him say that there is no problem in the US, that the crisis originates from europe, and mostly Italy.

Now I wonder why, following his logic, Italy and and the others can't write off their debts too. Is there some special privilege at play that I'm not aware of ?

Italy cannnot create Euro's. The US can create dollars. Unfortunately they also must create debt as they do so. Think about it. Is there enough money in the economy now? If so, why do we have real unemployment at around 20% and the majority of the employed having trouble paying their bills? I say we don't have enough money and thus we must take on more debt to get it there.The real problem is not the debt, at least under this system, it is the fact that the moeny the government puts in the economy gets hijacked by the banks.

Greenspan is 100% right.

Originally posted by professornurbs
That kind of thinking is rediculous that is why we are where we are.

couldnt agree more with yea.. lets print money ya dont have -_- yess lets just print money we dont have and pay back later taht will probly never be returned.. you gotta stop they debt pay it off take away unnecassary stuff and boom then ya got no more debt and less spending prices drop then stuff gets cheaper

America is already crashing...
About time!

The world's nº1 terrorist nation will soon be gone.

The funniest part is that commerce is nothing more than an idea. Money, gold, silver are just things that people put in place of the idea that they hold some value. Every currency ever in history was nothing more than an idea that a pointless object is worth a percentage of the value of a useful object. Gold has value because it's shiny.

The comments on this thread had me laughing so hard my sides hurt, i want to thank you all for that. But in all seriousness its absolutely amazing that a man of his credentials can come on a TV show like that and make such an incredibly juvenile statement. I would expect an elementary student to have that reply on fixing debt, not the guy who was pretty much the overseer of the nations money for many years I don't know whats going on, but judging from the comments Ive read and the people in real life I talk too the propaganda that we see on TV is no longer seen as truthful but a side show or spectacle. So I'm honestly hoping we get some more "elites" to come out and make outlandish statements like that just as the people are slowly but surely waking up. We just might get the revolution we need to correct this thing.

Thankgod Greenspan isnt part of the US economic sys...... wait a tic.
oh crap!

Luckily nobody takes Alan Greenspan's economic model seriously.

(thats a joke btw, yes, an entire political side is sold on his polical model)
Gah

So, at which point can we call a spade a spade then? Greenspan made a faulty craptacular model of capitalism and every side needs to drop like 80% of his model...find the few minor bits that actually work and mix it with keynesian economics...the hybrid may actually work, it can't be worse than what we have today...

So how much more money does the (virtual) printing press have to create compared to whats already out there?

Finding out how much "real" money already exists seems to be a difficult thing, because there are so many different ways of measuring it, so I'll just go with wikipedia's entry on money supply...

... M2, the broadest measure of money supply, has increased ... to $8.36 trillion

And the current debt is 14.6 trillion.

So you need to get a total of 22.96 trillion in circulation to get back to zero debt.

Therefore, the (virtual) printing presses have to almost triple the amount of US dollars in circulation.

I believe he also said the economy would slow down ealier today, but dosent see a double-dip. I wonder if I should believe him?

news.yahoo.com...

Former Federal Reserve Chairman Alan Greenspan said Sunday that he doesn’t think a double-dip recession is on the horizon for the U.S. economy.

Also, wasnt Greenspan one of the people that said "all is fine and well" in 07 and early 08?

-Also gotta love Goolsbee's face..."Uhhhh, should I agree with him?"

He said so because that's how the US and the FED work...we like it or not.

The Dollar devaluation is not a coincidence...is by design, and now that the US exports begin to cost less and China and Euro exports are more expensive... what they gonna do?

to ask the US to pay the debt the US have with China??
peace of cake as Greenspam said...just print and pay....easy.

I was going to start a new thread for this, but I think it can be added to this topic as another example of how completely moronic the money-men really are. I bring you Treasury Secretary, Timothy Geithner...

Source: www.marketwatch.com...

"S&P has shown really terrible judgment and they’ve handled themselves very poorly,” Geithner said in an interview with NBC/CNBC.

“And they’ve shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement,” Geithner said.

And what was the CORRECT conclusion, Tim? That the budget deal was a firm and decisive plan to get the US debt under control and set the economy back on the right track? Funny, looked like a toothless mishmash of half-baked compromises to me.

I'm getting sick of these idiots.

The United States plans to revisit China's currency question, which could add to tensions over the arms sales to Taiwan and other issues, sources said. U.S. President Barack Obama's administration has informed Chinese officials the currency issue will be a main agenda point in economic talks this year, a senior official told The New York Times.

The artificially undervalued currency is blamed for driving up China's huge trade surpluses against the United States while at the same time raising the prices of U.S. exports.

China's currency devaluation

a year later...Touché China!