Friday, March 12, 2010 
Greenspan Speaks
In his article Inflation – the real threat to sustained recovery , Alan Greenspan points out that in the short run, the danger is deflation. In the long run, the danger is inflation. I agree with his assessment.
The most prescient words of the article he saves for last, as he sums up the inevitable outcome when government is put in charge of capital allocation:
“However, for the best chance for worldwide economic growth we must continue to rely on private market forces to allocate capital and other resources. The alternative of political allocation of resources has been tried; and it failed.”
Peace
More on this topic
(What's this?)
Guest Post: Greenspan Says Worst Financial Crisis EVER, INCLUDING the Great Depression
(naked capitalism, 2/23/10)
Greenspan Says Banks Need More Capital
(naked capitalism, 5/21/09)
Inflation Hedging: Four Ways To Protect Your Investment Portfolio
(Investment U, 5/28/09)
