Greenspan: U.S. Won't Default Because We Can Inflate Money Supply

By:  Thomas R. Eddlem
08/08/2011
       
Greenspan: U.S. Won't Default Because We Can Inflate Money Supply

Former Federal Reserve Bank Chairman Alan Greenspan came up with a novel way to claim the U.S. government would never default on debt: print the difference. Greenspan told NBC's "Meet the Press" August 7, in response to a question about the recent downgrade in the U.S. bond rating by Standard and Poor's:

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. So there is zero probability of default.

Analysts ask, Zimbabwe-like inflation of the dollar is not default? They say that Greenspan won't find that argument very persuasive to bond-holders, who won't be able to buy anything with their bonds when they come due.

Former Federal Reserve Bank Chairman Alan Greenspan (pictured) came up with a novel way to claim the U.S. government would never default on debt: print the difference. Greenspan told NBC's "Meet the Press" August 7, in response to a question about the recent downgrade in the U.S. bond rating by Standard and Poor's:

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. So there is zero probability of default.

Analysts ask, Zimbabwe-like inflation of the dollar is not default? They say that Greenspan won't find that argument very persuasive to bond-holders, who won't be able to buy anything with their bonds when they come due.

Click here to read the entire article.

 

The JBS Weekly Member Update offers activism tips, new educational tools, upcoming events, and JBS perspective. Every Monday this e-newsletter will keep you informed on current action projects and offer insight into news events you won't hear from the mainstream media.
JBS Facebook JBS Twitter JBS YouTube JBS RSS Feed