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Alan Greenspan: We Can Always Print Money to Pay Debt

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

This has NOTHING to do with Greenspan ? See ? You're still doing it

Why don't you and your master from Ohio just drop the MMT pretense and just debate the effectiveness of FISCAL iniatives ?
 
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.

Greenspan is touching on how the fed credits the accounts of those who hold securities. QE is another example though.
 
This has NOTHING to do with Greenspan ? See ? You're still doing it

Why don't you and your master from Ohio just drop the MMT pretense and just debate the effectiveness of FISCAL iniatives ?


Who are you talking about that is from Ohio?
 
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.

Greenspan proved himself a bad joke, when he shunned responsibility and fed Bill Clinton's bubble for too long.
 
joke? you didn't get it.

I got it. It wasn't funny. I responded in kind.


How is it hogwash?

The US is the only manufacturer of dollars. It costs us very little in the way of labor and materials to actually print dollar bills, and less to electronically credit the accounts of those who are owed currency. It is literally impossible that the US couldn't create dollars to pay any bill it owes.
 
i am sure every noticed that gasoline was recently down, i myself was able to buy it for 1.39 a gallon.

while gasoline was down the federal government considered rising the excise tax on it.

but hey, government does not need to tax anymore, just print.
 
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Greenspan is touching on how the fed credits the accounts of those who hold securities. QE is another example though.

No, what I am saying is that description you posted is exactly what we did in QE rounds. The Fed bought various assets and investment vehicles off the books of financial institutions and paid them with effectively reserves, where by in large the majority ended up as just deposits held at the Fed. Loan activity is still happening but the real result was Fed’s balance sheet jumped from roughly $700 billion in Q1 2007 to more than $4.25 trillion dollars at the end of QE3. That is a core reason that the stock market shot up.
 
I got it. It wasn't funny. I responded in kind.

you seemed serious, not in kind.




How is it hogwash?

The US is the only manufacturer of dollars. It costs us very little in the way of labor and materials to actually print dollar bills, and less to electronically credit the accounts of those who are owed currency. It is literally impossible that the US couldn't create dollars to pay any bill it owes.

because if the government could print all it wants for its needs, then why this:

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?
 
No, what I am saying is that description you posted is exactly what we did in QE rounds. The Fed bought various assets and investment vehicles off the books of financial institutions and paid them with effectively reserves, where by in large the majority ended up as just deposits held at the Fed. Loan activity is still happening but the real result was Fed’s balance sheet jumped from roughly $700 billion in Q1 2007 to more than $4.25 trillion dollars at the end of QE3. That is a core reason that the stock market shot up.
Where's the hyperinflation Bobby? Where is it??!!
But QE isn't related to foreign "debt" payments, which is what everyone is really worried about.
 
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.

Umm, I thought that Greenspan was critical of the “Irrational exuberance” of the housing market in the bubble years.

Irrational exuberance” is a phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute during the Dot-com bubble of the 1990s. The phrase was interpreted as a warning that the market might be somewhat overvalued.
https://en.wikipedia.org/wiki/Irrational_exuberance

Thought so.
 
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.

You're using a MONETARY theory to push FISCAL iniatives

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

Liberal ideology = fools with money

Now who would have thought that? :lamo
 
because if the government could print all it wants for its needs, then why this:

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?

Income taxes encourage the accumulation of dollars by US citizens (wages), it keeps the dollar viable. It's a big hassle to earn US dollars and get caught avoiding taxes. The IRS makes sure everyone knows taxes are srs bsns. People want to park their money in Treasuries, knowing that they are 100% safe, pulling inactive dollars out of the savings of those wealthy enough to buy Treasuries puts that money back in use via gov't spending.

We have budgets because we cannot simply print dollars to the moon and back tomorrow. The purpose of dollars is to purchase something, if there are so many dollars that there aren't enough of those somethings to buy, then you have inflation. i.e. the country has to be capable of producing enough actual stuff for those dollars to be spent on. If there's more dollars than stuff, prices go up, if there's more stuff than dollars, prices go down. The key is finding a balance.

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?

Poor decisions, probably.
 
Umm, I thought that Greenspan was critical of the “Irrational exuberance” of the housing market in the bubble years.



Thought so.

He admitted the mistakes I am talking about, the quote was from his time before Congress.
 
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 is hard for banks and other lenders to look after their own self interest when the government is forcing them to make loans they shouldn't be making.
when someone comes in for a loan and they make 60k and want a 400k loan and you have to give it to them because the government says so you can't
protect yourself.
 
Where's the hyperinflation Bobby? Where is it??!!
But QE isn't related to foreign "debt" payments, which is what everyone is really worried about.

I get so sick of hearing this.

none of the QE money entered into the system. therefore no money was pushed in.
if that trillion dollars in QE money actually hit the system then you would have seen massive amounts
of inflation due to a huge devaluing of our currency.

none of the money entered into the system. it was basically a dollar for dollar exchange
between the fed and the bank.

however the fed still has to balance it sheets
Forbes Welcome
 
I get so sick of hearing this.

none of the QE money entered into the system. therefore no money was pushed in.
if that trillion dollars in QE money actually hit the system then you would have seen massive amounts
of inflation due to a huge devaluing of our currency.

none of the money entered into the system. it was basically a dollar for dollar exchange
between the fed and the bank.

however the fed still has to balance it sheets
Forbes Welcome

That's my point.
 
Where's the hyperinflation Bobby? Where is it??!!
But QE isn't related to foreign "debt" payments, which is what everyone is really worried about.

The lack of inflation was just ANOTHER indicator of just how sick our economy was and still is.

The new money from QE just sat idle onthe books of the FED marked as excess reserves

It never made it out into the economy
 
The lack of inflation was just ANOTHER indicator of just how sick our economy was and still is.

The new money from QE just sat idle onthe books of the FED marked as excess reserves

It never made it out into the economy
That's because banks can't lend reserves to us citizens.
 
That's because banks can't lend reserves to us citizens.

Marked as EXCESS reserves.

QE is supposed to be inflationary. How can it be inflationary if that money was never intended to make it out into the economy?
 
Income taxes encourage the accumulation of dollars by US citizens (wages), it keeps the dollar viable. It's a big hassle to earn US dollars and get caught avoiding taxes. The IRS makes sure everyone knows taxes are srs bsns. People want to park their money in Treasuries, knowing that they are 100% safe, pulling inactive dollars out of the savings of those wealthy enough to buy Treasuries puts that money back in use via gov't spending.

We have budgets because we cannot simply print dollars to the moon and back tomorrow. The purpose of dollars is to purchase something, if there are so many dollars that there aren't enough of those somethings to buy, then you have inflation. i.e. the country has to be capable of producing enough actual stuff for those dollars to be spent on. If there's more dollars than stuff, prices go up, if there's more stuff than dollars, prices go down. The key is finding a balance.



Poor decisions, probably.

simple questions for you to answer!

why did the federal government consider recently to raise the gas tax 5 cents, because gas was down below 2 dollars, if they have the ability to print money to pay its bills?

why does the federal government let central CA crops burn up in the heat because of no rain, since they have the money to build desalinization plants and bring fresh water into those crops which are being destroyed, since CA is very large producer of americas food?

why are bridges, roads in american in bad shape since they can print money?

you say the government is smart in that it can manipulate the dollar to keep the house in financial order , however fact shows they are not smart enough to keep the physical structure of the house in order.
 
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simple questions for you to answer!

why did the federal government consider recently to raise the gas tax 5 cents, because gas was down below 2 dollars, if they have the ability to print money to pay its bills?

The ability to print dollars does not negate our need to collect taxes. Some taxes are used to discourage the use of things like fossil fuels.

why does the federal government let central CA crops burn up in the heat because of no rain, since they have the money to build desalinization plants and bring fresh water into those crops which are being destroyed, since CA is very large producer of americas food?

Growing crops in a desert = bad idea. Government furthering the endeavor growing of crops in a desert = worse idea.

why are bridges, roads in american in bad shape since they can print money?

poor decision-making.

you say the government is smart in that it can manipulate the dollar to keep the house in financial order , however fact shows they are not smart enough to keep the physical structure of the house in order.

Come now, I made no such claim. That government has the ability to manipulate the dollar doesn't mean that it will be done intelligently or in even necessarily in the best interest of the country.
 
Marked as EXCESS reserves.

QE is supposed to be inflationary. How can it be inflationary if that money was never intended to make it out into the economy?

Exactly! QE isn't going to do what people want it to do.
 
simple questions for you to answer!

why did the federal government consider recently to raise the gas tax 5 cents, because gas was down below 2 dollars, if they have the ability to print money to pay its bills?

why does the federal government let central CA crops burn up in the heat because of no rain, since they have the money to build desalinization plants and bring fresh water into those crops which are being destroyed, since CA is very large producer of americas food?

why are bridges, roads in american in bad shape since they can print money?

you say the government is smart in that it can manipulate the dollar to keep the house in financial order , however fact shows they are not smart enough to keep the physical structure of the house in order.

No worries. Perpetual motion fiscal policy will save the day.
 
Exactly! QE isn't going to do what people want it to do.

You said Banks don't lend reserves but the excess currency created by QE isn't the same as reserves

Its just marked as excess reserves by the FED and never made it out into the economy where it would have a inflationary effect.
 
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