Greenspan: "Fuck everybody save the bond market"

Sept. 16 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said he’s worried that lawmakers will hamper U.S. central bank efforts to rein in its monetary stimulus, and that inflation might “swamp” the bond market.

“It’s the politics in the United States that worries me, whether the Congress will basically feel comfortable” with the Fed withdrawing its stimulus, Greenspan said in a broadcast to Tokyo clients of Deutsche Bank Securities Inc. today. He later said that “if inflation rears its head, it will swamp long-term markets,” referring to bonds.

With U.S. unemployment running at a quarter-century high, the Fed may face resistance from lawmakers as it tries to promote price stability by raising its benchmark interest rate from near zero. The jobless rate reached 9.7 percent last month and employers have cut almost 7 million jobs, the biggest drop in any recession since World War II.

The former Fed chief, who counts Deutsche Bank among his clients, also warned that the U.S. must rein in its “very dangerous” level of debt, citing the threat of increased issuance of Treasuries undermining the dollar.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ac4B.y_jKnmw

Let I said before we're being HELD HOSTAGE by the bond market!

Once rates go up, the cost to service our enormous debt goes parabolic.

Then we see SSI, Medicare, and all other government spending dry up.

The good thing of course is that there will be no more money for wars, secret prisons, or illegal wiretapping.

It might take a little effort, but look at the REAL numbers (or as close as you can get).


The Fed has been permitted to do what a lot of companies did...they took actions that were unhealthy in the long term to serve their short-term goals.

The difference is that when most companies have to reconcile their poor decisions, their stockholders pay. When the Fed does this, we ALL pay.