Greenspan said that not too concerned about the weakening dollar, but fears a rise in the U.S. budget deficit

Well-known economist and former head of the Federal Reserve System / Federal Reserve / Alan Greenspan said that "not too concerned about" the current weakness of the dollar. However, he stressed that America would be costly, rapidly increasing national debt. According to ITAR-TASS, Greenspan spoke on the eve of New York at a conference of the Council on Foreign Relations. His remarks widely quoted international business media.

"The situation with the dollar does not inspire me very concerned, but the growing federal budget deficit is the most alarming problem of the current economic situation in the United States", - said A. Greenspan. He stressed that the increasing interest costs lead to increased public debt.


"All the economic history of the United States shows that the government's ability to finance the national debt is the foundation on which rests the dollar as a major world currencies," - said the former Fed chief. "There is no doubt that this base is shrinking, and when the long-term bank interest rate will increase and intensify inflationary pressures, it will be too late" - he warned.

A. Greenspan also urged U.S. regulators to consider the need for the dismemberment of the largest financial institutions, which have become so large that they can no longer be bankrupt. These banks, he said, indirectly subsidized by the governments that allow them to attract money at low interest rates, as all are confident that the state will not allow these banks to collapse. "As a result violates the principle of competition, as well as a danger for the entire financial system", - said A. Greenspan.

"In 1911, the oil company was broken up by Standard Oil, and nothing terrible happened," - he said. "Some parts of the once united us become more active. Perhaps now we need to make similar moves", - said A. Greenspan.

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