“I cannot perceive that we can maintain these levels of interest rates for very much longer,” he told former Securities and Exchange Commission Chairman Arthur Levitt in a Bloomberg Radio interview to be aired this weekend and next. “They have to start to move up and when they do they could move up and surprise us with the degree of rapidity which may occur,” (sorry dude we think you have it wrong. The world is embracing negative rates, and we are in the midst of a currency war. No nation is going to dare raise rates unless it wants to completely wreck its economy)
Greenie is worried that we are headed for a period of stagflation. We have news for you here also; stop worrying about it, as we are in this phase and have been in it since 2010. The only way we will move out of this phase is if we stop printing money, and that is not going to occur anytime soon.
“The very early stages are becoming evident,” with unit labor costs beginning to rise and money supply growth starting to accelerate, he said.
He was also pessimistic about the Euro; all we can say is finally. The Euro was a bad idea from the day it came into being.
“It will break down, as indeed it is showing signs of in many different areas,” he said.
He called the 19-nation currency region “unworkable” because it tries to meld the different cultures and attitudes towards inflation of southern Europe with the North.
“If they can’t get it together, then an amicable divorce, probably dividing into two or three different currency areas” would be preferable, Stiglitz, an economist and professor at Columbia University, said in a Bloomberg Television interview with Tom Keene and Francine Lacqua Full Story
Maestro Greenspan Dreaming or Dealing
Greenspan either does not know what’s going or he is purposely singing a false song; we suspect it is the latter. He was never the most powerful person; it only appeared that he was such an influential person because the masses assigned that power to him. Otherwise, he is just another fly on the wall waiting to be swatted. Rates will not rise soon; if any nation embarks on rate hiking process, it will be the end of their economy. So his assumption on rates rising should be ignored or treated as the ravings of a mentally unstable person. On the issue of the EU, he is correct (for the most part); the EU is run by parasites in Brussels who are not officially elected and whose sole function is to take a nation’s hard money and impose rules that make life more difficult.
The EU is set up in such way that it benefits Germany the most; Germany needs the EU because it provides it with weaker currency; the German Mark would be soaring in value, and a strong Mark would destroy its export-based model. The poorer members are offered low-interest loans, and it looks good until they cannot pay them back and then as they say the lovely story ends. That is what happened to Greece; being in the EU allowed it to borrow more money than it could ever hope to pay back.
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