Greenspan’s rationalization for double digit inflation in the future is self serving and very deceptive. Double digit inflation will come like Greenspan says but it won’t come because of lack of workers as Greenspan implies. Worker shortages just bring higher productivity. Double digit inflation will actually come because people and governments have been spending much more than they have had, for many decades.
The Federal bankers of some nations have just been creating money like it was toilet paper and it will be worth just about as much some day.
What’s the solution? There isn’t any, it is far too late to save the system. The US is already bankrupt because it has 65 trillion in entitlements debts coming due and no way to pay for them except by printing nearly worthless paper or by defaulting. Some other countries are in the same position. Even the countries that have assets will suffer the consequences because the assets they hold will become worthless paper and there will be little wealth left in the world to buy their products.
When the facts hit home that the dollar and certain other currencies need to inflate to pay off their debts the whole world economy will be in the toilet. It is not that there will be a labor shortage, there will be few jobs for laborers at all. Paper assets will be wiped out, along with individuals savings and promised entitlements.
After people lose nearly everything they ever worked for, the world bankers will propose a partial bail out through a new worldwide banking system that will enslave the people into a socialist global system that will have little differences in pay for work done anywhere on the globe. This is the socialist utopia the elite dream of for others but not for themselves.
Greenspan: Higher inflation to warrant double-digit rates in future – USATODAY.com Greenspan: Higher inflation to warrant double-digit rates in future – USATODAY.com: “WASHINGTON — Former Fed Chairman Alan Greenspan predicts in a new book out Monday that the Fed will have to raise interest rates to double-digit levels in coming years to thwart inflation. Greenspan, 81, says in The Age of Turbulence that the inflation-damping effect of globalization, which has led to lower wage pressures, inflation and interest rates worldwide, will recede. At some point, the flow of people into the workforce in developing countries such as China, which has seen a movement of workers from farms into factories, will slow, leading to stronger wage pressures and prices, he says. The impact will be global.”
“Fed Chairman Ben Bernanke and his colleagues, who meet in Washington Tuesday, have kept their target for short-term interest rates, which influence borrowing costs economywide, at 5.25% for more than a year. Greenspan’s assertion that the Fed may have to double rates from current levels suggests the Fed may put itself in a bind by cutting rates now.”
