Greenspan warns US budget deficit will ultimately lead to higher inflation

[mfcorey1]

The yawning federal budget deficit is ultimately going to eventually lead to higher inflation, former Federal Reserve Chairman Alan Greenspan said Thursday.

The federal debt-to-gross domestic product ratio is on track to be as large as it was during World War II, Greenspan said during a talk at a National Association for Business Economics conference.

“Unless you believe in fairies, that is not an economy that can function without inflationary instability,” Greenspan said.

The former Fed chairman despaired the lack of political pressure to control entitlement spending and narrow the deficit.

“Despite the huge increase that we’ve seen in the debt, nothing is happening. People are behaving like it’s a terrible thing, but [say] ‘I want a little more,’” he said.

https://www.msn.com/en-us/money/markets/greenspan-warns-us-budget-deficit-will-ultimately-lead-to-higher-inflation/ar-BBUdjI7?li=BBnb7Kz&ocid=mailsignout

[tirebiter]

1. Chairman Greenspan got Bush sr to raise taxes

It was the logical thing to do but Bush was pissed because Greenspan wouldn't lower lending rates soon enough. They should've been lowered a quarter earlier in George's opinion. That gave the Clintons the opportunity to use "It's the economy, stupid," in the '92 election.

[JHB]

2. He also supported Bush Jr's deficit-ballooning tax cuts

And the increase during Poppy's administration was still too little, considering how low conservatives had made income taxes in the 1986 reform. Two brackets: 10% below median income, 27% above.

[Achilleaze]

3. And republicans maintain the lie that they are "conservatives"

What utter horseshit.

[democratisphere]

6. redumbliCONS are a contradiction to everything they claim to be.

Conservative BS. Family Values BS. Fair and Balanced BS. Patriotic BS. The Party of Lincoln BS. The BS goes on and on.

[Sherman A1]

7. Precisely

For smaller government until they are not, for lower taxes until they are not, for anything until they are not.

[saidsimplesimon]

4. Greenspan wrong on what spending

can and should be controlled. The OP says he despairs over a lack of political pressure to control entitlement spending. He makes no mention of the escalating legislative appropriations for military spending that benefits the military industrial complex that Eisenhower warned of.

Just another Republican who condones robbing the poor to pay for the debts caused by tax cuts, imo.

[Sinistrous]

5. I agree that these deficits are destabilizing, but

Greenspan uses the standard conservative whipping boy of entitlement spending as the primary driver of the deficits, and ignores the roles of corporate fascism and lopsided tax cuts.

[democratisphere]

8. Fairies didn't add $1.4 trillion to the national debt so that the

wealthiest could have a humongous tax cut. redumbliCONS did.