Sunday, August 7, 2011

Alan Greenspan: US Can Pay Any Debt It Has Because It Can Print Money To Pay It

Of course. Technically the Federal government can never go broke, because, yes, with a central bank able to print fiat money at will, backed by absolutely nothing, all debts can (and probably will) be paid with increasingly worthless Monopoly money. The price is inflation and the theft through that hidden tax of the purchasing power of all those who hold U.S. dollars. Hell, if I had my own "legal" printing press, I too could pay all my debts with no problem, buy a new car (I desperately need, but can't afford, one), ditch my roommate and move into my own luxury apartment, even quit my job. But, as Peter Schiff says in the interview with Steve Forbes below, that can never happen (unless I want to risk a long prison sentence) because the government hates competition (which is why the government should not be allowed to do anything I can't also legally do).

In the end, with unfunded liabilities in the tens of trillions of dollars that can be met no other way, the dying Federal monster will resort to the only possible solution, creating new money out of thin air, and thankfully kill itself off even faster.

Steve Forbes: "If printing money was the way to wealth, then we should legalize counterfeiting"


  1. Democracy in US is a dictatorship of the elite. US is not a democracy because it is money that talks during elections and not the people. The results of each election are the expression of the voice of money and not the voice of Americans.
    Peru’s constitution prohibits an outgoing president from seeking a second consecutive mandate. In Guatemala, not only can an outgoing president not seek re-election to the same post, no one from that president’s family can aspire to the president either. Rwanda is the only country in the world that has 56% female parliamentarians. In the recent CIA index, four of the world’s best-governed countries are African. Equatorial Guinea whose public debt represents only 1% of the GDP.
    After Libya, NATO will go after Algeria, because apart from its huge energy resources, the country has cash reserves of around $250 billion. This is what lures the countries that are bombing Libya and they all have one thing in common – they are practically bankrupt. The USA alone, has a staggering debt of $14,000 billion, France, Great Britain and Italy each have a $2,000 billion public deficit compared to less than $400 billion in public debt for 46 African countries combined.
    US economy is in a deep hole and US shouldn’t dig any more. Reckless money printing known as “Quantitative Easing” and economical stimulus packages introduced in the aftermath of the Credit Crunch, has made very little impact on the growth of US economy. Current US economical growth is not adequate enough to create jobs and to get an economy back on track. Now the banks are under enormous pressure to lend more money but reckless lending by banks got US into this mess in the first place. The economical problems in Greece, Spain and Italy are very precarious. The bailout phenomenon is not working in Greece which is on the brink of defaulting on its debt. It is impossible for the EU to bailout Italy which is the third largest economy in Europe.

  2. Default on its obligations may be more likely.


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