Greenspan: Fed Balance Sheet Poses Inflation Risks (No S^$#!)



Just die already, you wrinkled old bastard. And if you won't at least do us that favor, how about a nice tall glass of shut the fuck up?

Reuters:

Former Federal Reserve Chairman Alan Greenspan said on Friday that the Fed risks igniting a burst of inflation if it does not withdraw its extensive support for the economy at the right moment.

"You cannot afford to get behind the curve on reining in this extraordinary amount of liquidity because that will create an enormous inflation down the road," Greenspan said at a forum hosted by The Atlantic magazine, the Aspen Institute and the Newseum.

In its battle against the worst financial crisis in 70 years, the Fed has chopped interest rates to zero and flooded the financial system with hundreds of billions of dollars in the process. In so doing, it has more than doubled the size of its balance sheet to over $2 trillion.

The Fed has said that with high unemployment and a record level of factory idleness, none of the pressures that would ignite inflation is on the horizon. A government report on Friday that showed a weaker-than-expected job market in September is likely to provide additional support for that view.

Greenspan said the economy is "undergoing a disinflationary process," and stressed that the Fed faces no urgent need at the moment to unwind its monetary stimulus.

Still, his comments echo concerns raised by some policymakers who worry that delays in shrinking the Fed's bloated balance sheet will tempt fate and recommend action sooner rather than later.

"It's critically important the Fed's doubling of its balance sheet be reversed," Greenspan said. "If you allow it to sit and fester, it would create a serious problem.

Kind of like we allowed you to sit and fester for 18 years?

It's easy to wag your liverspotted finger now, AG, but I hope you remember that you did this. Bernanke wouldn't even have to pull out the monetary firehose and the Fed wouldn't be in this situation if you hadn't been jerking everyone off with your easy money hand.

Please shrink off and die already, you old troll, as I'm sure Satan has a special surprise waiting for you when you arrive at your final resting place. Here's a hint: it's 15 inches long, black, knobby and rubber and you're going to have to bend over to get it.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

2 comments:

Anonymous said...

Why is that man talking in public instead of hiding out in the hayloft with John Wilkes Booth?

Anon,

He must be working on another book or is getting eaten alive by his guilty conscience. Seeing as the old bastard never had a conscience, it must be the former.

AG (the *other* AG, that is)