Moscow. September 15. INTERFAX.RU — Former Federal reserve Chairman Alan Greenspan expressed concern that the economic and political system of the United States can be undermined by those he called “the loonies”.
Source: Reuters
“This is the worst economic and political environment to which I’ve ever had at least something,” said 90-year-old economist at a conference in Washington organized by Stanford and Chicago universities.
According to Greenspan, the U.S. is moving to stagflation — the combination of a weak economy and accelerating inflation. “As for politics, I have no idea why this happens,” he said.
“We have no stable equilibrium. I hope we can all find a way out because it is too great country to be screwed up, as if to call them nuts,” said former head of the us Central Bank.
Greenspan, who worked from 1974 to 1977 in presidential administration from Republican party of Gerald Ford, declined to comment, answering the question whom he was referring, reported Bloomberg.
In the current presidential race in the US democratic presidential candidate Hillary Clinton ahead of Republican billionaire Donald trump in the polls but its advantage has declined. Trump in terms of his campaign promises to build a wall to keep out of illegal immigrants from Mexico, and threatening to impose protective duties on Chinese imports.
Greenspan has also expressed concerns that an increase in government spending on social security and health care will crowd out private investment and lead to slower economic growth. He regretted that none of the presidential candidates has talked about curbing these costs.
“Nobody wants to talk about it” for fear of negative political reaction, the economist noted.
