By Vivek Kaul – The Vivek Kaul Letter (India) –
This is a very special edition of the Letter.
On January 17, 2017, Agora Inner Circle Strategic Council members met former Chairman of the Federal Reserve of the United States, Alan Greenspan. Greenspan was the Chairman of the Federal Reserve from August 1987 to January 2006.
The Inner Council members present were Bill Bonner, Iván Carrino from Argentina, Simone Wapler from France, Vern Gowdie from Australia, Fred Hsu from China and yours truly from India.
We also had economists Jim Walker of Asianomics and Richard Duncan of Macro Watch, with us. Chris Lowe is the moderator of the discussion. Here are the edited excerpts.
This is the second and the concluding part of the interview.
Bill Bonner: I’m going to follow along on that. The risk of the fiat currency system after 1971 was clearly consumer price inflation, which happened. You predicted it early on, I believe, then we had it, and then Paul Volcker, your predecessor, came in and got ahead of it and engineered a deflation in consumer prices that then lasted for another 20–30 years. Then the risk after that was the risk of an inflation of debt.Interest rates coming down, debt going up. What are the odds, or the possibility, that a Fed chief or a Federal Reserve could now engineer a deflation of debt, or get ahead of it?