Greenspan: Trade gap is no problem

[cthrumatrix]

Greenspan: Trade gap is no problem

Fed chairman, in remarks for Bundesbank, says unimpeded trade will help overcome imbalances.
January 13, 2004: 11:24 AM EST



WASHINGTON (Reuters) - Federal Reserve Chairman Alan Greenspan said Tuesday he saw no problem for now in funding the massive U.S. trade gap, but warned that rising protectionism could make the global economy less flexible.

"There is, for the moment, little evidence of stress in funding U.S. current account deficits," Greenspan said in remarks prepared for delivery at Germany's Bundesbank in Berlin. He noted the U.S. dollar has fallen broadly against other currencies.

"Yet inflation, the typical symptom of a weak currency, appears quiescent," the Fed chairman said.

snip

http://money.cnn.com/2004/01/13/news/economy/fed_greenspan.reut/index.htm?cnn=yes


Greenspan obviously thinks that since the flawed CPI index shows "nada"...that there is no inflation and no need to worry.

Question - has the cost of living gone up for Americans? Last time I looked health care, auto/home insurance, real estate taxes , groceries, commodity prices up 11% in 2003.

What is he thinking...?

[Sagan]

1. All Greenspan thinks about is inflation

Was he abused by inflation as a child? Did he have an unhappy love affair with inflation?

Hey, bug-eyes! There are OTHER economic factors than inflation, you know.

[papau]

2. Service area "inflation" nil as outsourcing destroy's income and jobs

but that is not a GOP concern.

[Gin]

3. His ivory tower is too high to be touched by the issue.

another out of touch rethuglican

[daleo]

4. The Simpsons - Lisa goes to Washington

The one about the corrupt senator. Remember those great old tunes during the Mark Russell spoof:

The Deficit Rag

The deficit rag, oh yeah the deficit rag,
Those budget gaps can be a twelve-digit drag,
I'm telling ya, that's the deficit,
They really made a mess of it,
That's the deficit rag!


The Trade-gap Shuffle

The trading gap shuffle,
We're in a heap of trouble,
Doin' the trading gap shuffle, yes sir!


Cheney, Bush and Greenspan just want to bring back those memorable musical moments.

[loudnclear]

5. It's only a problem is it occurs under a Dem administration.

Remember all these economic pronouncements: trade deficit no problem; deficits are not problem.