Ironically admitting that either no one in government is an economist, or that Keynesians are not real economists, Alan Greenspan says:
“We are now at a state where,” Alan Greenspan said Friday, sounding almost lucid, “excluding World War II, we are in the worst shape of relationship between borrowing capacity and debt, I suspect, since 1791…
“We don’t know at this stage why or how the markets respond to this sort of — this type of event. And I think we’re taking a very high risk… In 1979, for example, everyone expected, yes, we have a little inflation, but there is not going to be a real problem.
“Within a very short time, the bond markets broke. Interest rates went up sharply. Mortgage rates went up sharply. The economy went into a real serious depression. And my basic — I said ‘depression.’ I meant recession.
“My problem, basically, is that economists can’t make these forecasts.”
Austrian economists — real economists — knew this was going to happen. Pretty much the entire time Alan Greenspan was head of the Federal Reserve and actively wrecking the economy, they predicted what would happen as a result of his bone-headed, destructive policies.