Alan Greenspan made the statement today on Meet the Press:
“The United States can pay any debt it has because we can always print money to
do that. So there is zero probability of default”
Although he is correct, there are two points that need to be considered:
- This logic is predicated on the dollar being the world currency.
- Printing more money, devalues the dollar (and the corresponding debt repayment).
httpv://www.youtube.com/watch?v=eEKhxdeadk0
China’s Dagong Global Credit Rating chairman, Guan Jianzhong, made the following statement concerning the US dollar:
the currency is “gradually discarded by the world,” and the “process will be irreversible.”
Other countries will force this transition from the dollar to a “basket of currencies” and precious metals within a few years. Although the logic for the second point is valid, the morality is not. Theft by deception is still theft and that is the solution that the Federal Reserve has always used to weaken our country’s fiscal strength.
How many of our politicians agree with this principle of devaluation and redistribution as a solution for a failed fiscal policy? The difference between a politician and a leader is how they stand up for our principles. The silence from Washington is our answer to what role principles play inside the Beltway.
As a reminder, Egan-Jones and Dagong Global had already downgraded the credit rating of the United States prior to the Standard & Poor’s downgrade. The politicians are now trying to spin the S&P downgrade on a mathematical error and the Tea Party.
It appears that the game is up and the people know who is at fault. The question is what we will do next?
Asian markets open … gold $1695.10 (kitco.com spot bid 07 August 2011 EDT 22:32)
Looks like the start of an “interesting” day for the market.
I don’t normally watch that show, but watched it yesterday. Greenspan made that comment with a straight face, no emotion, whatsoever, like a sociopath. I feel sure that little harpy dwarf of a wife of his, Andrea Mitchell, will be singing that song on MSNBC, today, too, while she and the other Obama bootlickers continue to try to blame the Tea Party.
I agree that his delivery was just as important as the words. Both expose the Federal Reserve’s policy to destroy the dollar without any thought of reprisal. So who really is in control?