Greenspan admits we're deflating

Greenspan was interviewed on MSNBC last week — you can watch the video below, if you have time to waste: I do not bother listening to whatever Greenspan, Bernanke, or any other official says or writes.

I found this quote, which is quite telling:
At the moment there is no sign of that because the financial system is broke and you can not have inflation if the financial system is not working.
It's quite a progress for a keynesian bouffon like him to admit that the system is broke and that we'll deflate, I'm very impressed.

What he hasn't realised yet — or better, he doesn't want to admit in front of the public — is that he contributed as much as contributing was possible to the current state of affairs.


Dave Narby said...

If he's smart, he'll come out and claim he did all that debt creation on purpose to destroy the current system and force the world back on a hard money standard.

His 1967 paper on gold would provide him cover.

pej said...

Yes, his 1966 (?) paper is a great real money treatise.

Let's see if he ever dares to claim he did all that on purpose. :-)