Alan Greenspan: Monetary Policy, Deficit Spending, And Future Inflation

Alan Greenspan: Monetary Policy, Deficit Spending, And Future Inflation

Former Federal Chairman Alan Greenspan was hosted on CNBC answering questions about monetary policy and his views on the current state of the U.S Economy. WTF Finance is a harsh critique of Alan Greenspan as the policies of the Federal Reserve were interfering with the natural demand and supply variables of the markets. Greenspan “solved” economic recessions by infusing trillions of newly created liquidity into the markets while keeping interest rates at artificial lows, fueling the speculation in the stock and real estate markets.

“The Fed does do look at future inflation…. It can look at future inflation just as well as he can, not any better, not any worse”

Greenspan acknowledged the budget problems and rightfully questioned equity prices while also voicing concern about the deficit spending and the loose monetary policy. Interesting given that this is descriptive of the policies of the Federal Reserve while Greenspan himself was head of the quasi-private Federal Reserve Bank.

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This post was written by:

Leonardo Abaci - who has written 13 posts on WTF Finance.

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  • Frank

    Ron Paul has been saying this for three decades now while both Democrats and Republicans have increased spending and the deficit while growing the role of Government. Too bad not more people see the value in the message that Ron Paul is sending.

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