Greenspan warns of bond crisis with continued debt

January 7, 2011 18:52

Former Fed Chairman Alan Greenspan said the U.S. could face a bond-market crisis if politicians don’t act soon to start cutting the nation’s debt.

“Deficit spending is simply a scheme for the confiscation of wealth.” -Alan Greenspan Gold and Economic Freedom; The Objectivist, 1966

“Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money,by issuing government bonds, to finance welfare expenditures on a large scale.” – Alan Greenspan Gold and Economic Freedom; The Objectivist, 1966

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