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Author Topic: "Greenspan: 'Devastating' consequences if deficit ignored"  (Read 2072 times)
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WhiskeyGirl
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« on: September 13, 2011, 08:07:07 PM »

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Former Federal Reserve Chairman Alan Greenspan warned of a "devastating" impact if policymakers do not get serious about the deficit soon, splitting ways with his successor and current Fed head, Ben Bernanke.

"We have been procrastinating for far too long," he told a Senate Finance subcommittee on Tuesday. "If we presume we have a year or two before starting serious long-term restraint, and we turn out to be wrong ... the impact on financial markets could be devastating."

read more here - http://thehill.com/blogs/on-the-money/budget/181289-greenspan-devastating-consequences-if-deficit-ignored
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WhiskeyGirl
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« Reply #1 on: September 13, 2011, 08:10:37 PM »

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At a hearing of a Senate Finance Committee subcommittee, Sen. Mike Crapo, R-Idaho, said he believed the best use of savings from closing tax loopholes would be to lower rates.

“Ordinarily I’d agree with you,” Greenspan told him. “But we are in such precarious shape fiscally at this stage that I think it is essential we get the level of the deficit down as quickly as possible.”

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He also said no new tax cuts should be enacted that add to deficits. Obama has called for cutting the payroll tax, but he has proposed paying for the cut by boosting levies on the wealthy.

“It doesn’t make sense except in very extraordinary circumstances to cut taxes funded by borrowed money,” Greenspan said. “I don’t think, at the end of the day, that works.”

http://www.washingtonpost.com/business/greenspan-to-congress-debt-fix-will-be-painful-tax-code-overhaul-must-be-part-of-any-plan/2011/09/13/gIQAvFO1PK_story.html

How much will all those loopholes really bring in at the end of the day?  Has any Obamanomic program worked?  Made the US prosper?  Raised wages of working people on Main Street?
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WhiskeyGirl
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« Reply #2 on: September 13, 2011, 08:16:22 PM »

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"The very first thing we ought to address is to get the deficit down," Greenspan told a Senate Finance Committee subcommittee.

Greenspan's comments, coming as President Barack Obama and Congress begin an autumn of dueling over job creation and debt reduction, seem to put him at odds with congressional Republicans who want to revamp the tax code by eliminating loopholes and lowering tax rates. Obama and congressional Democrats are more inclined to use savings from closing loopholes to pay for job creation and cutting the debt.

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Greenspan said there is no credible way to control the federal debt without inflicting economic pain, because policy makers have waited too long to deal with the burden that retiring baby boomers are starting to put on government programs.

http://www.statesman.com/news/nation/greenspan-tax-overhaul-should-be-used-to-cut-1856189.html

What about all the money wished into existence at the Fed?
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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
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