To: sea_urchin who wrote (22490 ) 3/3/2005 3:27:13 PM From: sea_urchin Respond to of 81137 > As I keep telling you -- get your mind right -- deficits in the US economy don't matter, no matter how big Ouch! No sooner did I make that utterance than Sir Alan rushed in to refute it.thestar.com >>Greenspan sounds U.S. deficit warning Consequences `could be severe,' Fed chief says Debt worries clouding outlook for economy WASHINGTON—U.S. Federal Reserve Board chairman Alan Greenspan issued one of his toughest warnings yet to Congress yesterday about the danger of letting the country's giant budget deficits persist, saying "the consequences for the U.S. economy of doing nothing could be severe." << And just in case anyone wondered why he said it now and not before, he gives the reason in the very next paragraph -- he wants to plunder the Social Security savings, or what's left of them. >>Testifying before the House budget committee, Greenspan endorsed the creation of private retirement accounts within Social Security, saying he favours a "significant personal accounts component." Greenspan said Congress must act to overhaul Social Security "sooner rather than later" because of the impending surge in retirements. "I fear that we may have already committed more physical resources to the baby-boom generation in its retirement years than our economy has the capacity to deliver," Greenspan said. "If existing promises need to be changed, those changes should be made sooner rather than later," Greenspan said. << And lest anyone should think that this was a reason to sell the USD, Treasuries or otherwise have doubts about the US economy.... >>Greenspan, when asked what would happen to the economy if foreign banks begin selling U.S. Treasury bonds in large volumes, said he didn't expect it would cause a surge in interest rates. "Our general conclusion at this stage is we do not perceive that it is a really significant problem for our domestic economy," he said. << No flies on Sir Alan -- what he takes with one hand he steals with the other!