Wednesday, June 25, 2008

Greenspan says recession likely

According to a Reuters article yesterday:
The U.S. economy has been hit by a credit crisis which began in the sub-prime mortgage market, prompting a series of interest rate cuts to help boost the economy. But price pressures are growing, making more rate cuts unlikely.
Isn't this a forbidden scenario, according to the More-Money-Will-Always-Save-Us outlook?
Greenspan said he did not believe arguments that the housing problems in the U.S. were due to interest rates being too low during his tenure. "As far as I'm concerned, the data do not support it (that argument). The housing bubble is clearly an international phenomenon."
Let's see, Greenspan inflated here, other central banks inflated there. A bousing bubble developed here, housing bubbles developed there. But according to Greenspan's logic, the Fed is not at fault because we had housing bubbles here and there, making it an "international phenomenon."

The author of Gold and Economic Freedom continues his intellectual free-fall. A few years ago he told Ron Paul he had re-read the article recently and still stood by it. Let's see him stand up for it now. Let's hear him repudiate the Fed and fiat money and call for an honest gold standard.

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