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February 4, 2005
Pol Greenspan Friday, February 4, 2005 9:14:46 AM
I suppose now that Fed Chairman Alan Greenspan -- closing in on the ripe old age of 80 -- is set to resign his position at the U.S. Federal Reserve Bank, he must be thinking ahead to a political career. Republican Senator for the Great State of New York maybe?
I really don't see how Greenspan could know how Congress is finally going to get its act together and reduce its budgetary spending deficits. But that's what he claims will happen.
8:45am 02/04/05 Greenspan sees U.S. current account deficit stabilizing By Greg RobbWASHINGTON (MarketWatch) -- A confluence of market pressure and fiscal restraint may dampen the U.S. current account deficit in coming months, said Federal Reserve chief Alan Greenspan. In a speech prepared for delivery Friday to a conference in London, Greenspan said market pressures "appear poised to stabilize and over the longer run possibly to decrease the U.S. current account deficit and its attendant financing requirements." He said there is also growing support in Washington for cutting the federal budget deficit, which should also reduce pressure for the U.S. to borrow abroad. Greenspan repeated that the current account deficit cannot widen forever, and said U.S. economic flexibility "will likely facilitate any adjustment without significant consequences to aggregate economic activity."
Actually, I think Greenspan has it wrong, and Gates and Buffett have it right. The wealthiest two individuals in the world continue to state their belief that the U.S. Dollar is in a secular decline because of out-of-control government spending issues.
Furthermore, I say that until the Europeans and the Japanese have paid their fair share in the global war against terrorism, directly, that I believe the U.S. administration will continue its policy of letting the USD fall, which hurts economic growth in those parts of the world, and makes them pay indirectly.
Isn't the first Friday of each month a terrific day for spin?
Posted by Posted by Bill Cara on February 4, 2005 09:11:30 AM | Category: Economics