Alan Greenspan: Stimulus an utter failure, more will only devalue dollar further

Greenspan wasn't talking about the stimulus bill of 2009 that threw $1.2 trillion (including interest) down the rathole to create 3.5 million NEW jobs and keep unemployment below 8% (3 million jobs have since been lost and the unemployment levels is above 9% 2 1/2 years later). He is talking about "quantitative easing," or what we in the real world call printing money. (or what I would call legal counterfeiting) Which reminds me: Video: Why Don't They Just Call Quantitative Easing Printing Money - The Last Refuge Of Failed Economic Empires And Banana Republics?

With that as a backdrop, from CNBC: Fed's Massive Stimulus Had Little Impact: Greenspan

The Federal Reserve's massive stimulus program had little impact on the U.S. economy besides weakening the dollar and helping U.S. exports, Federal Reserve Governor Alan Greenspan told CNBC Thursday.

In a blunt critique of his successor, Fed Chairman Ben Bernanke, Greenspan said the $2 trillion in quantative easing over the past two years had done little to loosen credit and boost the economy.

"There is no evidence that huge inflow of money into the system basically worked," Greenspan said in a live interview.

...On Greece, Greenspan a default is likely and will "affect the whole structure of profitability in the U.S." because of this country's large economic commitments to Europe, which holds Greek debt. Europe is also where "half the foreign [U.S.] affiliate earnings" are generated, he added.

...Greenspan was also pessimistic about the U.S. deficit talks, saying he didn’t think Congress would reach an agreement on raising the debt ceiling by the Aug 2 deadline.

And on the debt ceiling being raised, he doesn't think there will be a deal and I sure hope he's right on this:

If that happens, he said, the U.S. would have to continue paying debt holders or risk major damage in global financial markets. As a result, “we will default on everything else.”

Defaulting on everything else will include admitting that politicians can't afford everything the have promised via entitlement programs that are extra-constitutional and thus unconstitutional. It's way past time that that admission be made. The Greenspan video:

UPDATE: Obama Admits: "We've Spent A Lot Of Money That We Don't Have"