Thursday, April 21, 2005

Worse than Stagflation?

Federal Reserve Chairman Alan Greenspan just warned the Senate Budget Committee that unless the U.S. begins to rein in the spiraling budget deficit and trade deficit the economy was at risk of stagflation "or worse."

What's worse than stagflation? Depression?

Does anyone remember a chairman of the Federal Reserve using language like this before in an official setting?

2 comments:

Anonymous said...

Actually, Bruce, it seems that Greenspan uses very similar language about every other year or so and has been doing for several years. The federal budget has been out of balance for decades and the national debt has grown every year except for the couple years Clinton used Social Security surplus monies to pay it down a bit.

Bruce Prescott said...

Harold,

Thanks for the research you did for your comment. It adds a lot.