Greenspan Speaks Out On Coming National Debt Crisis

Former Chairman of the Federal Reserve, Alan Greenspan, is warning that the rising national debt will lead to exploding interest rates in the near future. This is somewhat ironic.

Alan Greenspan was once held in high esteem by those in the world of economics. He was a believer in the Austrian school of economics through and through. Whether it was this belief or sheer incompetence, he decided to let money become very cheap through the 1990s and into the 2000s. The result was a housing bubble that blew up and took the economy with it.

Many have placed huge chunks of the blame for the mess directly at the feet of Greenspan. Given this, it is rather humorous that he is not sounding the alarm on the increasing size of the national debt. He believes that treasury auctions will start to fail soon and the U.S. will have to raise interest rates on the notes to sell them. This will mean larger payments by the government and more money being devoted to servicing the debt.

Greenspan is absolutely correct in his warning. It is just a matter of when the rates will go up. That being said, the man’s comments should be viewed with dripping irony. The massive debt is more or less the result of his actions. It is a kin to Stalin warning a nation about the perils of living under a mad dictator.

As the coming financial disaster plays out, the name Alan Greenspan will come to be despised. His warnings on the size of the debt are rooted in his own actions, something few will forget when the price of everyday goods goes through the roof along with interest rates.

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