Alan Greenspan loses his mind, recommends hyperinflation as a solution to the debt problem

by editor on August 8, 2011

There was a time when Alan Greenspan was considered a genius? When Congress hung on his every word? When the media swooned at his mere presence? When he was thought of as sexy by Hollywood starlets? What the hell happened?

Our guess? Too many nights sleeping in a malfunctioning hyperbaric chamber with Andrea Mitchell will make a man start thinking strange thoughts.

alan-greenspan

"Not three, not four, but five gazillion dollars," Alan Greenspan said. "That's all we need to print."

Like this one reported by CNBC:

Former Federal Reserve Chairman Alan Greenspan on Sunday ruled out the chance of a US default following S&P’s decision to downgrade America’s credit rating.

“The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default” said Greenspan on NBC’s Meet the Press.

“What I think the S&P thing did was to hit a nerve that there’s something basically bad going on, and it’s hit the self-esteem of the United States, the psyche” said Greenspan.

Stock up on real estate and commodities, because Greenspan is recommending a recipe for hyperinflation.

Source: CNBC

18
Leave a Reply

Please Login to comment
9 Comment threads
9 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
11 Comment authors
trainman261Lannyjwilson07PsychoDadBryan Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of
trainman261
Guest
trainman261

The article’s title is misleading. He isn’t suggesting or recommending it, he’s saying that that is the reason the US would never really default on its debt.

Lanny
Member
Lanny

I agree with Greenspan. I don’t think he was prescribing money printing. I think he was making the strictly technical observation that there’s no risk of default as long as the US can print its own money. (That assumes one doesn’t think of devaluing the currency as a form of “default”)

In theory, the threat of the Fed simply printing money should be factored into the interest rates investors demand. But because so few investors actually understand monetary policy, history, or the Austrian School of economics, current interest rates don’t appear to have any relationship to long-term monetary risk.

Note. I’m not saying we SHOULD print our way out of debt. I’m saying that’s the politically easy thing to do. And our representatives ALWAYS take the easy way out. So brace for it. Our wild ride has barely started.

jwilson07
Member
jwilson07

(This post is better if you picture me wearing a lab coat and rubbing my hands together feverishly) YOU ALL LAUGHED WHEN I BOUGHT SILVER AT 5 BUCKS AN OUNCE!! YOU SAID I WAS CRAZY AND STUPID, WELL WHO IS LAUGHING NOW? BWAHAHAHAHAHAHHAAHHAHAHAHAHAHA.
Actually I bought enough silver to fill 4 safety deposit boxes, but still think I’m screwed and that they will confiscate it before I can spend it on expensive Scotch and cheap floozies.

poppajoe49
Guest
poppajoe49

I’m wishing I had held on to the silver I had and not sold it back when Carter was President at $17.41/oz.

RockingHorseGuy
Member

I drink mine every day.

Bryan
Guest
Bryan

When I was younger and still learning about the economy, I thought Alan Greenspan was the man. Now that I am not so naive, I realize that he was just the figure head for a group of people who have been bending us over and screwing for the last couple hundred years.
rapid rescore

PsychoDad
Member

Uh-oh, I think I hear a David Icke – type “The Queen is an Venusian drug-lord” lunatic, or even worse, the kind who talks about The International Jewish Bankers at the drop of a yarmulke.

poppajoe49
Guest
poppajoe49

Personally, I think that anyone who puts a link to a credit repair website in a post on the economy, is full of it.

Bryan
Guest
Bryan

I’m totally full of it. But I’m also living right on the beach in a tropical country laughing at you right now. But yeah, I don’t agree with the way our central banking system works. And Rapid rescoring isn’t really “credit repair”, it’s just a toy that savvy business people use to update their credit report.

Joe Redfield
Guest
Joe Redfield

Alas, Mr. Greenspan has cast his lot with the Progressives, who fervently believe that printing money is the same as creating wealth.

poppajoe49
Guest
poppajoe49

Progressives, who fervently believe that printing money is the same as creating wealth.

But, but, I have piles of cash, I must be wealthy!

LOL, just like the penney stocks that keep issuing more shares. They dilute the value of their stocks to the point where you can buy a million shares for $100. You feel like a bigshot with all those shares until you try to sell them before the company goes belly up!

RockingHorseGuy
Member

I don’t have any cash, but I still have a lot of checks. Does that work?

poppajoe49
Guest
poppajoe49

My investments have 15+ years to recover from this President. I have no intention of moving them now. This fool says dumb crap like this and scares the bejezuz out of people that sell off everything and he snaps it up at fire sale prices!
My wife freaks out every time she gets her 401k statement in the mail. She thinks she’s losing money. I keep reminding her that she hasn’t lost anything until she sells! Markets are cyclical, and they will rebound. as long as we have 10+ years to wait, there is no point in worrying.

David Bishop
Member
David Bishop

Honestly Joe, it’s a bit early, but I will be shifting my albeit limited portfolio to silver soon enough. I honestly don’t believe we can come back from this. A currency changeover is bound to happen if America continues unimpeded for another 20 years. We are at the Rome collapsing point of debt to GDP.

DOES ANYONE REMEMBER GERMANY AND THE 1920’s?!?!

poppajoe49
Guest
poppajoe49

WOW, the trolls are out in force tonight!

MGAP
Member
MGAP

Hmmm, someone’s portfolio took a hit last week. I’m guessing he knows his portfolio is going to get “pretty darned fked” this week too! Quick panic! It’s the Tea Party manipulating the markets…arghhhhhhhh.

poppajoe49
Guest
poppajoe49

When has he ever been as animated as he is in that picture?
Whenever I’ve seen him give a speech, he was able to put a room full of ADHD kids on Jolt Cola and cotton candy to sleep!
The guy has obviously lost it, he can’t remember how the economy works. Can you say Dementia?

danybhoy
Member
danybhoy

What bothers me is he’s worried about self-esteem, but does’nt understand what is actually needed to get America out of the recession. He sounds like our school system worried about self-esteem of kids who can’t read or write, but is not willing to teach them how to read & write.