Greenspan speaks.
Greenspan (the former Federal Reserve chief) is in favor of money that slowly inflates and worries about the danger of it then getting out of control and throwing us back into the Carter era of double digit inflation.
Here are his quotes below, picked out of an article on AOL:
He also predicts interest rates will reach double digits in the coming years in order to thwart inflation.
A self-described “libertarian Republican,” Greenspan takes his own party to task for forsaking conservative principles that favor small government.
“My biggest frustration remained the president’s unwillingness to wield his veto against out-of-control spending,” Greenspan wrote.
“The Republicans in Congress lost their way,” Greenspan wrote. “They swapped principle for power. They ended up with neither. They deserved to lose.”
Looking toward the U.S. economic future, Greenspan predicts that the Fed will have to force interest rates into double digits in order to keep inflation down.
The ex-Fed chief writes that he regrets the loss of fiscal discipline under Bush.
“`Deficits don’t matter,’ to my chagrin, became part of Republicans’ rhetoric.”
Greenspan long has argued that persistent budget deficits pose a danger to the economy over the long run.
What we really need is money that won’t inflate. We had it for 130 years and can have it again. Only the government benefits from inflation. We shouldn’t put up with it any longer. The Fed can give us non-inflating money any time it wants to, in spite of what they may say. We need more honest government, and a non-inflating dollar.
Inflation creates poor people. That’s wrong. Please think about this.
How can we expect common sense and restraint from the same leadership that pushed us into this ill-founded war?
Comment by idealistferret — September 25, 2007 @ 6:05 pm