• This is a political forum that is non-biased/non-partisan and treats every persons position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Alan Greenspan: We Can Always Print Money to Pay Debt

David_N

DP Veteran
Joined
Sep 26, 2015
Messages
6,562
Reaction score
2,769
Location
The United States
Gender
Male
Political Leaning
Liberal
We can never default. It's not "printing" either, it's all keystrokes.
 

Casper

Banned
DP Veteran
Joined
Dec 14, 2015
Messages
26,735
Reaction score
11,510
Location
Elsewhere
Gender
Undisclosed
Political Leaning
Independent
We can never default. It's not "printing" either, it's all keystrokes.

The idea that continues to destroy the US and World economy, there will be a Day that house of cards all collapses, good luck when that happens.
 

David_N

DP Veteran
Joined
Sep 26, 2015
Messages
6,562
Reaction score
2,769
Location
The United States
Gender
Male
Political Leaning
Liberal
The idea that continues to destroy the US and World economy, there will be a Day that house of cards all collapses, good luck when that happens.

Well, at least we know it's true.
 

Casper

Banned
DP Veteran
Joined
Dec 14, 2015
Messages
26,735
Reaction score
11,510
Location
Elsewhere
Gender
Undisclosed
Political Leaning
Independent
Well, at least we know it's true.

That they will keep printing more money, sure, that is until they make us go all digital, then they can devaluate our money in the blink of an eye instead of having to waste time with printing worthless money.
 

Moderate Right

DP Veteran
Joined
Oct 21, 2015
Messages
53,703
Reaction score
10,812
Location
Kentucky
Gender
Male
Political Leaning
Slightly Conservative
Typical liberal BS, finding a 23 second sound bite to prove their nutty theories. I guess this means that Greenspan is now an MMT'r?
 

Master PO

Mixed Government advocate
DP Veteran
Joined
Oct 22, 2012
Messages
32,516
Reaction score
5,321
Location
93,000,000 miles from Earth where its very Hot
Gender
Male
Political Leaning
Libertarian - Right
iam in the process of buying a new house and i need 1/2 million to cover the cost, alan print me up some money since it is no problem.
 
Last edited:

David_N

DP Veteran
Joined
Sep 26, 2015
Messages
6,562
Reaction score
2,769
Location
The United States
Gender
Male
Political Leaning
Liberal
Typical liberal BS, finding a 23 second sound bite to prove their nutty theories. I guess this means that Greenspan is now an MMT'r?
"MMT" is simply a label that a blogger I believe came up with. MMT describes reality, you can disagree with policy implications all you want.
 

OrphanSlug

A sinister place...
Supporting Member
DP Veteran
Joined
Sep 24, 2011
Messages
24,353
Reaction score
21,328
Location
Atlanta
Gender
Male
Political Leaning
Independent
Personally, I think Greenspan lost all of his credibility with his hands off approach to dealing with the banks and the asinine assumption that real estate values would go up even further than they were at the height of the bubble.

"I made a mistake in presuming that the self-interest of organisations, specifically banks and others, was such that they were best capable of protecting their own shareholders."

So when he talks about modern takes on monetary policy, we should all weigh carefully his prior takes on an Ayn Rand kind of attitude about the economy.
 

Moderate Right

DP Veteran
Joined
Oct 21, 2015
Messages
53,703
Reaction score
10,812
Location
Kentucky
Gender
Male
Political Leaning
Slightly Conservative
"MMT" is simply a label that a blogger I believe came up with. MMT describes reality, you can disagree with policy implications all you want.

MMT describes liberal reality, just as SSE describes conservative reality.
 

David_N

DP Veteran
Joined
Sep 26, 2015
Messages
6,562
Reaction score
2,769
Location
The United States
Gender
Male
Political Leaning
Liberal
Personally, I think Greenspan lost all of his credibility with his hands off approach to dealing with the banks and the asinine assumption that real estate values would go up even further than they were at the height of the bubble.

"I made a mistake in presuming that the self-interest of organisations, specifically banks and others, was such that they were best capable of protecting their own shareholders."

So when he talks about modern takes on monetary policy, we should all weigh carefully his prior takes on an Ayn Rand kind of attitude about the economy.

It's not just Greenspan though, this is really how it works.
http://neweconomicperspectives.org/2012/03/where-did-the-federal-reserve-get-all-that-money.html
“Now, you might ask the question, well, the Fed is going out and buying 2 trillion dollars of securities – how did we pay for that? And the answer is that we paid for those securities by crediting the bank accounts of the people who sold them to us, and those accounts, at the banks, showed up as reserves that the banks would hold with the Fed. So the Fed is a bank for the banks. Banks can hold deposit accounts with the Fed, essentially, and those are called reserve accounts. And so as the purchases of securities occurred, the way we paid for them was basically by increasing the amount of reserves that banks had in their accounts with the Fed.
Yeah, greenspan's approach helped prove that the "hands off" nonsense doesn't work in reality.
 

joG

DP Veteran
Joined
Jul 27, 2013
Messages
43,839
Reaction score
9,638
Gender
Undisclosed
Political Leaning
Independent
We can never default. It's not "printing" either, it's all keystrokes.

True. Of course, it does not always work that easily. And he should remember that the money he printed has caused two full fledged bubbles that have burst and we are still trying to avoid the third wave.
 

David_N

DP Veteran
Joined
Sep 26, 2015
Messages
6,562
Reaction score
2,769
Location
The United States
Gender
Male
Political Leaning
Liberal
True. Of course, it does not always work that easily. And he should remember that the money he printed has caused two full fledged bubbles that have burst and we are still trying to avoid the third wave.

It really does. It's all keystrokes.
 

joG

DP Veteran
Joined
Jul 27, 2013
Messages
43,839
Reaction score
9,638
Gender
Undisclosed
Political Leaning
Independent
"MMT" is simply a label that a blogger I believe came up with. MMT describes reality, you can disagree with policy implications all you want.

It certainly describes the way liberals are increasingly wishing reality might be.
 

Master PO

Mixed Government advocate
DP Veteran
Joined
Oct 22, 2012
Messages
32,516
Reaction score
5,321
Location
93,000,000 miles from Earth where its very Hot
Gender
Male
Political Leaning
Libertarian - Right
Who is the monopoly issuer of the currency?

if the government can print money:

why are the american people taxed?

why is there an IRS with that over head?

why do we have debt?

why do we have budgets?

why is american's infrastructure in bad shape?

why did america close military bases?

why does the federal government seek to impose a new tax whenever they can or increase an existing one?
 

Fenton

DP Veteran
Joined
Nov 17, 2012
Messages
29,771
Reaction score
12,231
Gender
Male
Political Leaning
Conservative
"MMT" is simply a label that a blogger I believe came up with. MMT describes reality, you can disagree with policy implications all you want.

Not when its used to justify destructive and ineffective progressive fiscal iniatives like "stimulus "

Then it doesn't describe reality at all.
 

David_N

DP Veteran
Joined
Sep 26, 2015
Messages
6,562
Reaction score
2,769
Location
The United States
Gender
Male
Political Leaning
Liberal
It certainly describes the way liberals are increasingly wishing reality might be.

This is reality.
1.) The government spends by crediting accounts (For the purpose of this discussion, the fed/treasury are the 'government.')
2.) The government taxes by debiting accounts
3.) Deficit spending adds dollars to the private sector
4.) A surplus drains dollars.
5.) The government can never fail to make payments denominated in its own currency.
 

Fenton

DP Veteran
Joined
Nov 17, 2012
Messages
29,771
Reaction score
12,231
Gender
Male
Political Leaning
Conservative
Why are people on the left so ****ing dishonest! ?
 

joG

DP Veteran
Joined
Jul 27, 2013
Messages
43,839
Reaction score
9,638
Gender
Undisclosed
Political Leaning
Independent
This is reality.
1.) The government spends by crediting accounts (For the purpose of this discussion, the fed/treasury are the 'government.')
2.) The government taxes by debiting accounts
3.) Deficit spending adds dollars to the private sector
4.) A surplus drains dollars.
5.) The government can never fail to make payments denominated in its own currency.

That is for people that never looked at economic history. Sure you can degrade your currency, if you are willing to live the consequences. But it is a fool that does so.
 

Fenton

DP Veteran
Joined
Nov 17, 2012
Messages
29,771
Reaction score
12,231
Gender
Male
Political Leaning
Conservative
Huh? Why don't you point out what is false?

You're using a MONETARY theory to push FISCAL iniatives

Its DISHONEST and typifies the kind of crap you people are known for
 

Critter7r

DP Veteran
Joined
Aug 4, 2014
Messages
5,698
Reaction score
2,490
Location
Michigan
Gender
Male
Political Leaning
Centrist
iam in the process of buying a new house and i need 1/2 million to cover the cost, alan print me up some money since it is no problem.

He's referring to the debt of the country, not your personal debt.

He's also not saying that there aren't inherent problems with creating more currency.

You have to separate the fact that the US cannot default on its debt from the idea that anyone thinks its a good idea to print trillions and drop them from a helicopter.
 

David_N

DP Veteran
Joined
Sep 26, 2015
Messages
6,562
Reaction score
2,769
Location
The United States
Gender
Male
Political Leaning
Liberal
You're using a MONETARY theory to push FISCAL iniatives

Its DISHONEST and typifies the kind of crap you people are known for

Huh? Greenspan is simply stating the truth. The us can always credit accounts of those holding securities.
 

Master PO

Mixed Government advocate
DP Veteran
Joined
Oct 22, 2012
Messages
32,516
Reaction score
5,321
Location
93,000,000 miles from Earth where its very Hot
Gender
Male
Political Leaning
Libertarian - Right
He's referring to the debt of the country, not your personal debt.

He's also not saying that there aren't inherent problems with creating more currency.

You have to separate the fact that the US cannot default on its debt from the idea that anyone thinks its a good idea to print trillions and drop them from a helicopter.

joke? you didn't get it.

hogwash!
 

OrphanSlug

A sinister place...
Supporting Member
DP Veteran
Joined
Sep 24, 2011
Messages
24,353
Reaction score
21,328
Location
Atlanta
Gender
Male
Political Leaning
Independent
It's not just Greenspan though, this is really how it works.
Where Did the Federal Reserve Get All that Money? - New Economic PerspectivesNew Economic Perspectives

“Now, you might ask the question, well, the Fed is going out and buying 2 trillion dollars of securities – how did we pay for that? And the answer is that we paid for those securities by crediting the bank accounts of the people who sold them to us, and those accounts, at the banks, showed up as reserves that the banks would hold with the Fed. So the Fed is a bank for the banks. Banks can hold deposit accounts with the Fed, essentially, and those are called reserve accounts. And so as the purchases of securities occurred, the way we paid for them was basically by increasing the amount of reserves that banks had in their accounts with the Fed.

Yeah, greenspan's approach helped prove that the "hands off" nonsense doesn't work in reality.

That is just a description of QE, and we have already been through 3 rounds of it. I suspect Greenspan is talking about more than QE, even if he is unwilling to be specific on what.
 
Top Bottom