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Alan Greenspan: We Can Always Print Money to Pay Debt

David_N

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We can never default. It's not "printing" either, it's all keystrokes.
 
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.
 
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.
 
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.
 
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?
 
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.
 
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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.
 
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.
 
"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.
 
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.
 
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.
 
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.
 
"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.
 
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?
 
"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.
 
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.
 
Why are people on the left so ****ing dishonest! ?
 
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.
 
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
 
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.
 
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.
 
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!
 
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.
 
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