It isn’t everyday that I agree with Lew Rockwell… But this time, I do.
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.
via No Chance of Default, US Can Print Money: Greenspan – CNBC.
😯
Wow….Just wow... 🙄
Bill Anderson writing over at Lew’s Blog says:
Granted, because I am in the Austrian camp, I don’t know anything about economics and money, but I still think my question should be asked: Is not the very act of paying a debt using newly-printed money in itself an act of default? Or, maybe I should be asking a more pertinent question: What has Greenspan been smoking?
I dunno, but between and that guy and the current idiot that is running the Federal Reserve, I do believe we are seriously screwed, tattooed and boo boo’ed. 😯
….and yes, I do know his ethnic background and the current Fed chairman’s background too. It means nothing; stupid is not restricted to we rednecks, that is for sure! 😀
Others: NewsBusters.org, Weasel Zippers