Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Federal Budget Deficit Worries Greenspan

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
PfcHammer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:05 AM
Original message
Federal Budget Deficit Worries Greenspan
http://news.yahoo.com/news?tmpl=story&u=/ap/20040506/ap...

Federal Budget Deficit Worries Greenspan

14 minutes ago Add Business - AP to My Yahoo!

By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON - America's soaring federal budget deficits represent a major obstacle to the country's long-term economic stability, Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) 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.

<snip>
Printer Friendly | Permalink |  | Top
displacedtexan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:09 AM
Response to Original message
1. Translation: Pay no attention to 13 interest rate cuts since Jan. 2001!
Pay no attention to tax cuts for the wealthy!

Pay no attention to what I said previously about the deficit not being a bad thing.

Pay no attention to my advice to home owners, which encouraged them to drop fixed rates and go for variable rates... just as interest rates started creeping upward last month.

Printer Friendly | Permalink |  | Top
 
skooooo Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:09 AM
Response to Original message
2. fat cat capitalists...

..getting ready to bail on Bush big time!
Printer Friendly | Permalink |  | Top
 
salin Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:10 AM
Response to Original message
3. Then why did he keep supporting Bush's tax cuts?
And not speak up when bush plays the current game of:

a) We will cut our deficits in half in the next five years (which, btw, will still be at pre-bush record highs, if you add the costs of Iraq - which they keep excluding from the budget)

This is only true if the tax cuts are phased OUT, as is the current law.

and

b) Congress MUST make the tax cuts permanent

Which will make the HUGE deficits permanent, making claim a) false.

Bush continues this rhetoric, and Greenspan stays quiet. Furthermore Greenspan was supportive of Bush's deficit swelling tax cuts. He has become a big part of the deficit problem, by giving legitimacy to the policies that have created and maintained these deficits and the staggering rate of amassing cummulative debt.
Printer Friendly | Permalink |  | Top
 
papau Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:16 AM
Response to Reply #3
7. Greenspan wants end to "nanny" state - No welfare, Soc Sec, Medicare, educ
monies being spent by Federal Gov - but the gov would still collect payroll tax since that is just a better designed income tax that avoids hitting the rich,

Classwarfare is usually won by the rich - they can buy the media whores to convince us it is unamerican to complain,
Printer Friendly | Permalink |  | Top
 
salin Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:30 AM
Response to Reply #7
8. Which is why his decrying the massive deficits is such a JOKE.
Printer Friendly | Permalink |  | Top
 
Go Eagles Donating Member (132 posts) Send PM | Profile | Ignore Thu May-06-04 09:34 AM
Response to Reply #3
9. In addition
Greenspan kept raising interest rates in 1999/2000 at the approach of an election on inaccurate claims that the economy needed to be cooled down because it was too strong. He has really shown his true partisan colors.
Printer Friendly | Permalink |  | Top
 
nodictators Donating Member (977 posts) Send PM | Profile | Ignore Thu May-06-04 10:38 AM
Response to Reply #9
14. Greenspan's rate increases cost Gore several million votes
Remember, former Fed Chairman Paul Volcker raised interest rates before the 1980 election. Volcker, a hardcore Repub who was appointed by Carter, sent Carter into the 1980 election with an 11% prime rate. Small business owners, who often paid prime + 3%, were dying. Of course, for that and other reasons, Carter lost.

Greenspan exposed himself when he sharply reversed course a few weeks after Bush's appointment to the WH and began the series of rate decreases. Naturally, the Heil Bush "news" media never took notice of Greenspan's politically-motivated, roller-coaster managment of interest rates.

Printer Friendly | Permalink |  | Top
 
mbperrin Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:12 AM
Response to Original message
4. Hell-o-o-o!
My mom and dad knew that you couldn't keep going into debt deeper and deeper every single year forever! They were 8th grade dropouts! Welcome to the real world, Mr. G-man!
Printer Friendly | Permalink |  | Top
 
DBoon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:16 AM
Response to Reply #4
6. But your Dad and Mom
couldn't force the rest of the world to accept their worthless bank notes as actual currency, nor could they invade foreign countries to steal what they could no longer afford.
Printer Friendly | Permalink |  | Top
 
DBoon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:14 AM
Response to Original message
5. Now remind me again who was president
"just a few years ago" when the budget was in balance?
Printer Friendly | Permalink |  | Top
 
bif Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:35 AM
Response to Original message
10. Yet he approved the huge tax cuts!
What an asshole. Anyone could see this coming.
Printer Friendly | Permalink |  | Top
 
jeanmarc Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:35 AM
Response to Original message
11. Deficits don't matter, Alan
Dick Cheney told me this, and we know how reliable that old dick is.
Printer Friendly | Permalink |  | Top
 
gratuitous Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 09:57 AM
Response to Original message
12. But he's not so worried as to recommend taxing the overrich
It's those goddam disabled people on SSI and their $478 a month that's bankrupting the system! Right GE? I mean, NBC. Right Westinghouse? I mean, CBS. Right Disney? I mean, ABC.
Printer Friendly | Permalink |  | Top
 
DFWJock Donating Member (320 posts) Send PM | Profile | Ignore Thu May-06-04 10:11 AM
Response to Original message
13. Hasnt he heard
That deficits dont matter....

As President Cheney said: "Ronald Reagan proved that."
Printer Friendly | Permalink |  | Top
 
mumon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-06-04 10:41 AM
Response to Original message
15. I guess this story goes in the
"No shit, Sherlock!" folder.
Printer Friendly | Permalink |  | Top
 
section321 Donating Member (632 posts) Send PM | Profile | Ignore Thu May-06-04 12:21 PM
Response to Original message
16. Greenspan, the master bubble blower....
He enabled this deficit by signing on to Bush's first tax cut in 2001. And now he's worried because he's caused a whole new problem trying to fix the last problem (the dot com bubble).

I'm really starting to wonder about Greenspan.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Tue Jul 29th 2014, 06:05 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC