Posted by David Sherman on Thursday, September 20, 2007 at 15:47:10 :
In Reply to: Alan Greenspan said posted by jack cain on Thursday, September 20, 2007 at 14:24:15 :
When Alan Greenspan lambastes the Republicans, I tend to think he probably knows what he's talking about. But now that we've borrowed and spent, the government's stuck with a choice between inflation and depression. It was a credit crunch that precipitated the great depression, and since then they've done everything possible to avoid it. They paid of the WWII debt via inflation (only possible because FDR took us off the gold standard), and they paid off LBJ's "great society" and Vietnam war debts via inflation in the '70s. So, I expect they'll pay off our latest spending binge via inflation as well. Too bad we don't have more to show for the spending.
By the way, the Chinese have traditionally considered two investments safe; land and gold. China is rolling in cash, just as much as the US is mired in debt. After things shake out, I expect rich Chinese will be owning a lot of US land, as well as lots of gold. We've had quite a binge since 1980. Now comes the hangover.
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