CNBC.com:  The Federal Reserve's massive stimulus program had little impact on the US economy besides weakening the dollar and helping US 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 quantitative 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.  It obviously had some effect on the exchange rate and the exchange rate was a critical issue in export expansion," he said.  "Aside from that, I am ill-aware of anything that really worked, not only QE2 but QE1."  Greenspan's comments came as the Fed ended the second installment of its bond-buying program, known as QE2, after spending 600 billion.  There were no hints of any more monetary easing - or QE3 - to come.  Greenspan said he would be surprised if there was a QE3 because "it would continue erosion of the dollar."  The former Fed chairman himself has been widely criticized for the low interest rate policy in the early  and mid 2000s that many believe led to the 2008 credit crisis.  Bernanke, who took over for Greenspan in 2006, began implementing the quantitative easing program in 2009 in an attempt to unfreeze credit and prevent a collapse of the US financial system.  The strategy has gotten mixed reviews so far.  

Regarding Greece, Greenspan said a default is likely and will "affect the whole structure of profitability in the US" because of this country's large economic commitments to Europe, which holds Greek debt. Europe is also where half the foreign [US] affiliate earnings are generated, he added.  "We can't afford a significant drop in foreign affiliate earnings," Greenspan said.   Greenspan was also pessimistic about the US deficit talks, saying he didn't think Congress would reach an agreement on raising the debt ceiling by Aug 2 deadline.  "We're going to get up to Aug 2 and I think on that night we are not going to have the issue solved," he said.  If that happens, he said the US would have to continue paying debt holders or risk major damage in global financial markets.  As a result, "we will default on everything else."  He added, "At that point, I think we'll all come to our senses."   

My Comments:  Without God Almighty, none of them will ever come to their "senses."  "For the wisdom of this world is foolishness with God.  For it is written, 'He takes the wise in their own craftiness'" I Corinthians 3:19.  The very first thing the government would do, if they had any wisdom at all, is get rid of the privately owned Federal Reserve Bank, who prints the government's money, then charges the government interest on the money they print for us.  Instead of printing our own money, we are heavily in debt to the Federal Reserve, again - privately owned by big bankers.  President Woodrow Wilson signed the Federal Reserve Act on December 23, 1913 - the beginning of the end of US sovereignty.  President John F. Kennedy dared sign Executive Order 11110, enabling the US Treasury to print their own silver certificates; this would have effectively critically disabled the big private bankers that are now running the world.  Five months after this EO was enacted, they basically did away with JFK - assassinated - end of story.  Whatever happened to EO 11110?  The silver notes were recalled after Kennedy's assassination and - nothing, zilch.  The Federal Reserve went right on printing money and selling it to the US; printing money from nothing - selling it to the US - the US is now bankrupt - we are now owned by big bankers!  Now how smart is that?  The Bible foretells us that there will be famine and a world-wide economic collapse, which is happening right now.  Revelation 6:5-6 "And when he opened the third seal, I heard the third beast say, Come and see; and I saw a black horse and he who sat on him had a pair of balances in his hand; and I heard a voice in the midst of the four beasts say, A measure of wheat for a penny and three measures of barley for a penny, but do not hurt the oil and the wine."  Bible scholars say that this amount of food was about what one person required each day, and the two pennies was about what it took to feed a person each day, which was also equal to a day's wages.  In other words, hyperinflation will become so great that it will cost a person a day's wages for enough food for one person every day.  That means you have no other money to pay any other bills besides food, let alone feed your family.  According to the Word of God, it is coming.  Jesus also told the disciples that these signs would mark His return in the last days, "Nation will rise against nation, kingdom against kingdom, and there will be famines, pestilences, and earthquakes in various places" Matthew 24:7.  You might like to visit the News Videos page of this website for more information on the economic collapse.