Former Federal Reserve Chair Alan Greenspan told CNBC’s “Squawk on the Street” on Friday that the U.K. voting to leave the European Union “is just the tip of the iceberg.”
Britons voted by 51.9 percent to quit the 28-country union, shocking markets that had priced in a win for “remain.”
“This is the worst period, I recall, since I’ve been in public service. There’s nothing like it, including the crisis… This has a corrosive effect, which is not easy [to make] go away,” Greenspan said.
The former Fed chair said that the root of the “British problem is far more widespread.” The former Fed chair explained that the result of the referendum will “almost surely” lead to the Scottish National Party trying to “resurrect Scottish Independence.”
Greenspan said that fundamental problems like the stagnation of real incomes don’t have easy solutions.
“There’s a certain amount that monetary policy can do, but our problem is fundamentally fiscal,” he said, adding that this is true in the United States as well as “every major country in Europe.
Greenspan went even further and said that the “euro currency is the immediate problem.” While the euro and the eurozone were major steps in a movement towards European political integration, “it’s failing,” he said.
- IMF: The Euro Area Needs a Fiscal Union
- Here is a new argument for the Remainers – should be a winner
- Thomas Fazi and William Mitchell – The EU cannot be democratised – here’s why
- Make America Great Again
- Libertarian Warren Mosler – Keep Deficit and Eliminate Taxes (MMT for Conservatives Part 3)
- Vasakpoolsed UBI toetajad on neoliberaalidega seljad kokku löönud
- Kas Krugman on chartalist?
- Ralph Nader lahtistest piiridest
- Bitcoin’s big problem: The modern state can make anything it chooses generally acceptable as money
- Donald Trump: You Print the Money
- Internetist leitud kommentaar MMT kohta
- Ennustatav palgakasv OECD riikides 2018
- H-1B viisaprogramm
- European banks warn of multibillion-dollar hit from Trump tax reform
- The EU – Plan A and Plan B with MMT – Warren Mosler
- Üks huvitav graafik inflatsiooni kohta
- Itaalia maksusertifikaadid ja võlafoobid
- How the Eurobarometer Blurs the Line between Research and Propaganda
- Does Saving Europe Require Saving the Currency? Pavlina Tcherneva
Seda blogi vaadatud (60 sek hilinemine)
- 202,038 korda