Oh, so now the national deficit might be a problem?
The head of the Federal Reserve voiced a note of concern today about the effects of America's soaring national budget deficit on the country's long-term economic stability.
"We in the United States have been incurring ever larger deficits," the Fed chairman, Alan Greenspan, said. He added that "we have lurched" from a budget surplus in 2000 to a deficit that is projected by the Congressional Budget Office to amount to 4.25 percent of gross domestic product this year, or about $500 billion.
This is the same man who warned us all in 2000 that the nation might be in danger of paying off its debt too rapidly. To counter this, Greenspan wanted to pursue a “glide path” of deficit reduction. In order to pursue this “glide path,” Greenspan became an enthusiastic backer of Bush’s tax cut legislation. Needless to say, the Fed Chariman neglected to mention his own role in creating our current unsustainable defecits.
Some have suggested that the Greenspan's backing was essential to winning over some of the undecided votes in Congress. It sure as hell didn’t help matters.
Greenspan has been conducting himself like a mob boss running his personal orgainzed crime syndicate for too long. Should Kerry win, his first job should be to force out this old timer.
This just in: staggering debt will crush you (us)
Posted by mike at May 6, 2004 05:51 PM