Business Insider/Emily Graffeo/9-10-2020 “Alan Greenspan told CNBC on Thursday that the critical issues facing the US are i
“Alan Greenspan told CNBC on Thursday that the critical issues facing the US are inflation, the unknowns surrounding the coronavirus, and the budget deficit. The former chairman of the Federal Reserve said that the US is underestimating the size of the budget deficits that are down the road, as the number of Americans retiring and receiving entitlements increases. While much about another critical issue, the coronavirus, remains unknown, Greenspan said he is certain there will be an ‘extraordinary increase in retirement’ ahead.”
USAGOLD note: It is not difficult to imagine that “increase in retirement” accelerating the result of the virus. Those of you who frequent these pages know that we still put a great deal of stock in Mr. Greenspan’s thinking. With a long list of dangers now preoccupying investors, the national debt and budget deficits have been pushed toward the bottom of the list. While some spikes in the statistical mix might have already moderated (unemployment. volatility and stress indices come to mind), this is one that will not. In fact, as Greenspan point outs, it will get considerably worse over time based on demographic trends. Ramirez’ cartoon alluding to the recent discovery of a collision of two black holes is an eye-catcher that drives home the point.
Cartoon courtesy of MichaelPRamirez.com