<<America's soaring federal budget deficits represent a major obstacle to the country's long-term economic stability, Federal Reserve Chairman Alan Greenspan warned on Thursday.>>
That's why "me and Buffet" have been moving our investments to offshore currencies. :-)
Of course, we can always drag the entire world down with us. (For starters, picture a dried up demand for China products. Yoiks!)
"Apparently it was known in many places throughout the administration that these kinds of activities were going on. Why were there murders being investigated that we were not told about? And also why there is not decisive action being taken as we speak?" McCain asked.
"Has something fundamental happened to the U.S. economy and, by extension, U.S. banking, that enables us to disregard all the time-tested criteria of imbalance and economic danger?" Greenspan asked.
Answering his own question, the Fed chairman said, "Regrettably, the answer is no. The free lunch has still to be invented."
America's soaring federal budget deficits represent a major obstacle to the country's long-term economic stability, Federal Reserve Chairman Alan Greenspan warned on Thursday.
Greenspan told a banking conference that the federal budget deficit was a bigger worry to him than America's soaring trade deficit or the high level of household debt because those two problems can be corrected by market forces.
"Our fiscal prospects are, in my judgment, a significant obstacle to long-term stability because the budget deficit is not readily subject to correction by market forces that stabilize other imbalances," he said in remarks to a banking conference.
Greenspan noted that the federal deficit, estimated to climb above $500 billion this year, will amount to 4.25 percent of the total economy after being in surplus just a few years ago.