Posted: March 05, 2005

Government cheques do not bounce!

In testimony to the US House of Representatives Budget Committee on Wednesday, the Federal Reserve Chairman Alan Greenspan confirmed the obvious in an answer to Wisonscin Republican Paul Ryan (who is a social security fund privatisation zealot). While the full transcript is not yet available he is what transpired:

RYAN: do you believe that personal retirement accounts can help us achieve solvency for the system and make those future retiree benefits more secure?

GREENSPAN: Well, I wouldn't say that the pay-as-you-go benefits are insecure, in the sense that there's nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The question is, how do you set up a system which assures that the real assets are created which those benefits are employed to purchase.

Thanks Alan, government cheques do not bounce!

Blog entry posted by bill