No Take-backs

Alan Greenspan recommends that we not keep doing what every indication suggests that we will be doing for the next four years.

Federal Reserve Chairman Alan Greenspan warned the U.S. must deal with the causes of the weak dollar -- the U.S. trade deficit and the federal budget deficit -- or the country could run into economic problems down the line.

Greenspan said it is therefore important that the U.S. budget deficit be cut, a move that would reduce the current account deficit.

"Reducing the federal budget deficit (or preferably moving it to surplus) appears to be the most effective action that could be taken to augment domestic saving," he said.

This comes, as noted by Mark Kleiman, after his support for the tax cuts which have put us into this position. As Bill Maher would say, New Rule: When you're the Federal Reserve Chairman, you don't get "take-backs."