VIDEO - Greenspan On The U.S. Downgrade: 'The U.S. Can Pay Any Debt Because We Can Always Print More Money'
Sep 18, 2011 at 11:14 AM
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Video - Alan Greenspan on Meet The Press - Aug. 7, 2011

Q - "Are U.S. treasury bonds still safe to invest in?"

Alan Greenspan - "Very much so.  This is not an issue of credit rating, the United States can pay any debt it has because we can always print money to do that.  So, there is zero probability of default."

"What I think the S&P thing did was to hit a nerve that there's something basically bad going on, and it's hit the self-esteem of the United States, the psyche."

"The United States was actually doing relatively well, sluggish but going forward until Italy ran into trouble.  That destabilized the European system, and the crisis re-emerged. Europe is very critical to the United States in the sense not only do we have a fourth of our experts there, but more importantly, significant proportion of the foreign affiliate profits, in fact half of U.S. corporations, are in Europe."

"When Italy showed signs of significant weakness in selling its bonds—the yield is now over 6 percent, which is an unsustainable level—it created a massive problem within Europe because Italy is a very large country, cannot be easily bailed out and, indeed, cannot be bailed out."

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Greenspan says despite the fact that the president ignored the Simpson-Bowles Deficit Commission's report on how to fix the debt problem, it will be the template to the eventual solution.

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Greenspan - "We can always print more money."

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Flashback - Greenspan admits the Federal Reserve is above the law.

From PBS a few years ago.

 

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