Greenspan Warns Rising Deficits Endanger Economy

[Mister K]

Greenspan Warns Rising Deficits Endanger Economy

Federal Reserve Chairman Alan Greenspan warned on Thursday that unless lawmakers come to grips with spiraling U.S. deficits, the economy was at risk of stagnation "or worse."

"Under existing tax rates and reasonable assumptions about other spending ... projections make clear that the federal budget is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years," Greenspan said in testimony prepared for a Senate Budget Committee hearing.

He said the danger was that deficits would keep rising as a percentage of total national output.

"Unless that trend is reversed, at some point these deficits would cause the economy to stagnate or worse."

http://beta.news.yahoo.com/s/nm/20050421/ts_nm/economy_greenspan_dc_1&printer=1

[liberal N proud]

1. He should have been warning this 3 YEARS AGO!

[redqueen]

2. No kidding.

Why are the just now a problem? What a whore...

[indepat]

23. Which tells one everything he/she need know about Greeenspan's politics

and/or competency and it ain't pretty.

[tabasco]

41. That's right... either he's a flip-flopper who doesn't know his stuff

...or he's been a big Bush whore for the last five years.

My answer is BUSH WHORE and he needs to be replaced with someone who gives a damn about all the American people, not just the rich ones!

[leveymg]

3. Okay, Alan. We can't bug out of Iraq until 2007. So, who do we jettison

first - the retirees, the widows or the orphans?

Anyone ever ask you: how much does it cost to operate the Federal Reserve, anyway? Thanks for your retirement letter, in advance.

:bounce:

[Toots]

4. projections make clear that the federal budget is on an unsustainable path

Didn't we hear just a couple of months ago from this same incompetent "Deficits Unsustainable". I'm sure Republicans will pay just as much attention now as they did then..

[BillZBubb]

5. Greenspan is a piece of right wing SH_T

Now the deficits are a problem? Why didn't Count Dracula point that out when he was pimping Busholini tax cuts? If he's such a friggin economic whiz he, like the rest of us, would have figured that out about four years ago.

Shine some daylight on that cadaver. Watch him go up in flames.

[barb162]

18. Greenspan sucks Bush ____ (fill in blanks); He is a total shill

and is playing into the Bush plan to get rid of every social program Americans have had for decades.

[Stuckinthebush]

6. Didn't he advocate for tax cuts a few years ago?

Wow. This guy either doesn't know what he is talking about, or is an administration shill.

Of course, his shilling for the tax cut now is looking pretty stupid, so he becomes a deficit hawk to try to save face? I don't get it.

[Career Prole]

24. Absolutely. From the NYT article about his warning

"Although Mr. Greenspan in 2001 approved the tax cuts that helped take the federal budget from a surplus to its current deficit, he has increasingly pointed to the dangers of the shortfall, saying it can lead to higher interest rates as the government's revenues fall."
http://www.nytimes.com/2005/04/21/business/21cnd-fed.html?hp&ex=1114142400&en=59e516b29b532879&ei=5094&partner=homepage

And from the same article:

"Mr. Greenspan did not suggest specific ways to balance the budget, but he has leaned towards cutting spending rather than raising taxes."


This, of course, is because if Greenspan were to suggest raising taxes now it would be an admission to screwing up then.
Letting the economy go in the toilet is okay by Greenspan, just so long as he never has to admit he screwed the pooch in 2001.

"Being a neo-con means never having to say you're sorry"

[lanlady]

7. what an ugly weasel

He endorsed the very tax cuts that have landed us in this situation.

[HarveyBrooks]

10. And I'm sure...

his solution will be to cut federal spending - which was the plan from the beginning.
Just keep cutting taxes until the deficit gets totally out of control and then say the only way to fix it is to drastically cut spending.
Rolling back Chimpys' tax cuts for the rich won't even be on the table ("it will ruin the economy" they'll whine) and the poor and working class will get screwed again.

I honestly don't know how these people can sleep at night.

[gratuitous]

8. Hmmm, unsustainable deficits, huh Alan?

So, whaddya think? Another round of tax cuts for the overrich? Permanent repeal of the estate tax? I mean, if the shit's going to come down, you and your wealthy pals will want to be sure you've got a big ol' mountain of money to sit on top of, safe from the rabble.

[Rambis]

9. Wow no shit?

Couldn't fuckin believe that!

[PA Democrat]

11. So has he spoken out against privatizing Social Security yet?

Bush's plan to piratize SS would substantially grow the deficit, but I hear nothing but silence from Greenspan. Or will Mr. Greenspan advocate drastically cutting SS benefits? Start stocking up on dog food folks before the cost of it and everything else is out of reach for people living on fixed incomes.

[Robert Oak]

12. he's just covering his ass when the US economy collapses

by saying this.

He agreed with the tax cuts, he's said to revamp social security
(more Bush propaganda) never mentions Medicare/Medicaid (the
real crisis) and now says this when anyone knows
we have a looming disaster.

Note that our congress completely ignores the dire warnings and
the Shrub denial is a given.

[warrens]

13. He just fucking noticed?

Time for that senile douchebag to be put out to pasture. Or taken to the rendering plant.

[Javaman]

14. Oh, why all the doom and gloom?

Didn't we know all of this already? Didn't we know that the economy was heading for a brick wall?

It appears as if moron greenback or greenspan just woke up to that fact because he decided to leave his ivory tower and walk among the commoners.

And given morons* proclivity for economic frivolity, it appears as if the "or worse" scenario is likely. I think that little comment from greenback is his attempt at telling the people in the know that the days of "brother can you spare a dime" are just around the corner.

So if the last week and a half in the stock market has been any indication as to how things are fairing, you should be seeing some major selling off any day now as the news seeps into the public consciousness.

Instead of the old song, "we're in the money", the new catchy tune will be, "we're out the money"

We're out the money
We're out the money
We don't have two cents to rub together to help us get along....

[FlyByNight]

15. Better late than never, right?

Hey Al, people were screaming about this since Bush took office.

Partisan hack. :puke:

[meganmonkey]

16. Shocking! No wonder he gets paid the big bucks.

:eyes:

[Morose]

17. Have to wonder if he sees it getting so bad that it

affects HIS millions....nah.

[Art_from_Ark]

31. Of course! Didn't you know?

The Repugs reward incompetence in high places with big bucks-- and promotions.

[confludemocrat]

19. Getting just slightly behind the curve

instead of ahead of the curve and hoping it will be seen, when people begin to focus, as being "prescient".

What a genius.

[Arugula Latte]

20. Hey Dickhead Greenspan:

Apologize to Krugman. Now.

[Zorra]

21. Bwaahaa...Good observation there, Homer....gonna take some heat off

the republicans for the upcoming tax hikes before you quit and leave us in the economic hell that you, Bush and the rest of the fascist republicans created, are ya?
:rofl:
Aren't you the Fed Chairman? Aren't you and Bush and republicans the fascist corporate whores responsible for these deficits?

Get a life.

Absolutely no quarter for the republicans that destroyed the economy!

[yellowcanine]

22. There's a DEFICIT? Who knew? Lordy, he must be a sharp one to

have figured that out. Why - up to the end of 2000, we were running record surpluses. What happened in 2000?

[laylah]

25. A tad bit late

wouldn't you say, MR. Greenspan. I lost all respect for him about 3 years ago when he bought his very own personal knee-pads.

Jenn

[triguy46]

26. what a butthead

And to what and to whom do we owe (literally) this deficit to?

Good Lord!!! The cows are out!!! Shut the gate!!!

[triguy46]

27. and he gets paid how much for this insight?

[sundancekid]

28. even WaPo socks it to him ... yea, how about those tax cuts? go Sarbanes!

http://www.washingtonpost.com/wp-dyn/articles/A6620-2005Apr21.html

~snip
Greenspan Renews Warning on Budget Deficits

By Nell Henderson
Washington Post Staff Writer
Thursday, April 21, 2005; 3:06 PM

Federal Reserve Chairman Alan Greenspan said today that his support for tax cuts in early 2001 unintentionally encouraged policies that helped swing the federal budget from surplus to record deficits. In addition, he said for the first time explicitly that he expected tax increases to be part of any bipartisan agreement on deficit reduction.

~snip
Sarbanes chided the Fed chief that he is well aware of how Congress works, and he should have known lawmakers might not heed all his cautions.

Sarbanes said he believed it was "fair" for lawmakers to see Greenspan's 2001 remarks "as a green light to the tax cuts," which were enacted without any triggers.

"I plead guilty to that," Greenspan said. "I did not intend it that way."
~snip

Who's your daddy now, Alan?

[mbperrin]

29. Well, no shit.

I have been teaching this in my high school eco classes since 2001.

[pelagius]

30. Is Greenspan a research fellow at the Duh Institute?

Of course spending more than you take in is bad news!!

Even the Republicans I know (and there's a lot of 'em around here) are getting p'o'd about the deficit.

I like to use this line on anyone who will listen: "The only thing worse than a tax-and-spend Democrat is a don't-take-and-spend-anyway Republican."

[ProfessorGAC]

32. What An Idiot!

All he had to do was read the paper i had published in JUSE back in 1992. Of course, he wouldn't have understood the mathematical detail, but the conclusions, even he would get.

What a tool!
The Professor

[Quetzal]

33. WaPost: Greenspan Renews Warning on Budget Deficits (Oh, now you tell us)

Greenspan Renews Warning on Budget Deficits

Federal Reserve Chairman Alan Greenspan said today that his support for tax cuts in early 2001 unintentionally encouraged policies that helped swing the federal budget from surplus to record deficits. In addition, he said for the first time explicitly that he expected tax increases to be part of any bipartisan agreement on deficit reduction.

But Greenspan, responding to questions during a Senate Budget Committee hearing today, said it was unfair for critics to ignore the warnings in his January 2001 congressional testimony that the surplus forecasts might be wrong, and his recommendation of some "trigger" mechanism that would limit tax cuts if certain budget targets were not met.

"I think its frankly unfair" for critics to blame him for the fact that Congress chose to "read half my testimony and discard the rest," Greenspan said, venting his frustration on the issue publicly for the first time, in response to a question from Sen. Paul Sarbanes (D-Md.).

Sarbanes chided the Fed chief that he is well aware of how Congress works, and he should have known lawmakers might not heed all his cautions.

more...

Greenspan Renews Warning on Budget Deficits

This sack of shit is directly responsible for putting America on the road to financial ruin. His constant whoring for the * tax cuts, not once, not twice, but THREE TIMES makes him directly responsible for whatever financial mess we are in.

[indepat]

34. Where the f has Greenspan been these past several years?

[mhr]

35. Its All Part Of The Grover Norquist Plan - "Starve The Beast"

Greenspan is merely fulfilling his role as actor stating the obvious so Norquist's minions, Republican Politicians, can justify cutting social programs.

With Republicans, one must always look behind the curtain to ascertain the real agenda.

[priller]

36. What a whiny baby

He tries to wiggle out of his share of the blame by saying he didn't endorse any specific plan, or that they ignored part of his testimony. He's not that naive. The Pukes went to that hearing looking for a green light from Greenspan and he gave it to them.

[dsc]

37. He sold himself down the river

It is too late to now whine about there being no paddle in the canoe.

[Warren Stupidity]

38. Uh-oh big deficits?

Gee I guess we need to have another round of billionaire tax cuts. But perhaps, just to be prudent, we should raise the FICA tax on hard working squeezed at both ends middle class families to help subsidize those billionaire tax cuts. Yes that would only be right. And for sure, don't adjust that AMT, that kind of irresponsible behavior would encourage idleness and sloth among the sheeple.

[Mark E. Smith]

39. Regrets For The Contract He Signed With Satan

A fairly common reaction among the damned.

[DeaconBlues]

40. So, I guess he's finally admitting that trickle-down, voodoo economics

don't work. Now we need somebody to tell the rest of the right-wing business crowd that when you take something out of the pot it doesn't magically grow back.

[mia]

42. Interesting discussion about Greenspan here

Reads like DU at times...

http://www.freerepublic.com/focus/f-news/1388208/posts?q=1&&page=51