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alan greenspan when he testified to congress he explained his success in running the economy as based on what he called greater worker insecurity. a typical restraint. compensation increases has been evident for a few years but as i outlined in some detail in testimony last month i believe that job insecurity has played the dominant role workers and secured are going to be under control. they're not going to ask for say decent wages were a decent working conditions or the opportunity to free association meaning union and. now for the masters of mankind that's fine they may show their profits but for the population it's devastating. for these 2 processes financial ization i'm sure are part of what led to the vicious cycle of concentration of wealth concentration of power. please. lists lists lists. lists. and very well might continue watching on since last. in the troubled 19 seventies a group of killers rampage 3 parts of northern ireland that was coordinated loyalists attacks particularly the population of belfast tens of thousands were forced to flee their homes and what was strikin

alan greenspan when he testified to congress he explained his success in running the economy as based on what he called greater worker insecurity. a typical restraint on compensation increases has been evident for a few years but as i outlined in some detail in testimony last month i believe that job insecurity has played the dominant role workers in security are going to be under control. they are not going to ask for say decent wages were a decent working conditions or the opportunity to free association meaning unionized. now for the masters of mankind that's fine they may show their profits but for the population it's devastating. for these 2 processes financial ization and offshoring are part of what led to the vicious cycle of concentration of wealth concentration of power. one of the things that i started to realize is that the noise in my head as it me i started the practice of organizing my wife around what i wanted my life to be about even when it conflicted with my internal noids so you know i i wrote a book but in my head i'm not smart enough people like me to write books.

host: alan greenspan, here's the inflation is going to rise, as the deficit balloons over trillion dollars. guest: yes. if you look at the structure of the debt, we talked about the government borrowing from security taxes, that part of the debt is going to diminish and be publicly traded. if you look at that structured, , lot of the marketable debt those mature within one year. it's not like it's in 30 year bonds where we have a set interest rate. as the interest rate rises, the government is going to be rolling over these bills and notes paying a low interest rate and they will jack up. that is going to accelerate the cost of the debt. host: we will go to michigan. caller: hey, steve. wait to hear your republicans saying how biased you are by having somebody like terry on there. anyway. that said -- host: you must have been listening yesterday. caller: i was. i tried to get into defend you. you are my favorite next to, what is her name? i saw her. host: susan swain. caller: she got boosted up. host: she does q&a. anyway, she was doing an interview on q&a. host: susan swain, that's correc

pyramid happy started 1987 right so the crash of $87.00 brought in the plunge protection team under alan greenspan ronald reagan and robert rubin and they began to flood the markets with cash with government money with taxpayer money to essentially that was the end of free market capitalism in america in a huge way you had the 1913 in traditional the fed that destroyed much of the u.s. capitalism and then the 1987 plunge protection team pretty much took capitalism completely off the out of the picture in america and we ended up into a control a command and control system by the fed the fed became the new poll bureau interest rates became their the hammer and sickle that they beat the population and to rally the elites and they did so under the ideology of market fundamentalism which we find out is similar to theological fundamentalism and that it breeds terrorism that was only possible once told paul was no longer in the central bank that's paul volcker who did passed away this end of the year december 29th so he was the guy who was in charge of the central bank when the u.s. went off the gold sta

host: alan greenspan on cnbc earlier this month, here is the headline -- as inflation is inevitably going to rise as the deficit balloons over $1 trillion. will it? guest: yes. if you look at the structure of the debt, we talk about the intergovernmental debt where the government is borrowing from surplus social security taxes and paying it back to itself, more and more of the debt will be publicly traded treasury securities. if you look at the way that is structured, a lot of the federal bills, whicheasury mature in one year. inis not like it is all 30-year bonds with a set interest rate that we will be paying for the next 30 years. as the interest rate rises, the government will be rolling over these bills and notes that they are now paying a very low interest rate on, and those interest rates are going to jack up. that will accelerate the cost of the debt. host: a call from michigan. tim, good morning. caller: hey, steve, i cannot wait to hear your republican callers come calling in and saying how biased you are by having somebody like terry on. host: you must have been listening yeste

surprises it's not new now this is all there policy according to such a banker's whether it's alan greenspan or or whomever as ben to make an artificial rise in property and stocks that are man be. the sacrificial lamb that must be sacrificed on the altar of giving hedge fund managers shut manhattan or wages right they should say we're going to focus on the wages because that's what's been lagging behind us of prices to say that we're going to focus on asset prices after we've left wages behind for 20 years this putting the cart before the horse is complete opposite of the reality situation what they should be doing well max they do focus on that's what they mean in inflation numbers inflation they don't care about the inflation of property prices they don't care about the inflation in all the real services you need like health care rental property prices education prices car all the things you need to get around in life and have a job and participate in the economy they don't care about that inflation the only inflation that the fed ever is concerned about is what the they're all of darks t

and possible global economic crisis so in this situation he's saying and i think alan greenspan by the way would agree is that unless you have your gold in your possession you don't have the gold well let me sum up the global economy in just a few words number one banks all over the world have been making incredible amounts of junk loans to corporations to buy other corporations. those banks when they have a lot of junk loans built up that are not repayable they sell them to the central banks for this ever mounting global pile of treasuries and money that's being created to buy back the junk bonds the junk debt from the banks who have been just giving into their friends to buy out other corporations and these massive mergers and acquisitions stock repurchase scams and that has a finite end date the it can't do this forever and we're approaching that moment now we're in the smart people in different countries now in eastern europe if the alarm bells are wrong and they're like you know what this is an unsustainable ponzi scheme between junk bond dealing banks on wall street and the centr

the first fed chairman i met was alan greenspan.m at meetings and talked during the middle of the financial crisis, just being there and being next to him you feel small because he is so huge and i'm not very big. on the other side, knowing he had change the world and what i had gone through personally in my own life and was the reason i became an economist, because i saw someone could make the world a better place. after watching what i witnessed growing up and seeing my best friend going to poverty, i was lucky it was not me, but at one point in time she had to skip lunch and by mother gave her extra money so i could pay for her lunch. that seems small now, but to me it was a pro flying effect in learning -- profiling affect and learning what he did in school helped me become who i am. vonnie: a phenomenal tribute to paul volcker. thank you for joining us. diane swonk, grant thorton chief economist. i'm sure he will be thrilled to know there was another economist in the world. in the meantime, the world anti-doping agency has bann

former fed chair alan greenspan will sit down with the "squawk on the street" gang.hat out tomorrow. >>> all right, happy holidays, what a december -- >> thanks. >> you're welcome. what a december it has been, another record day, all three averages closing at highs. the nasdaq up 35% this year, the s&p up 27% but this guy says enjoy that while you can. they are likely not here to stay blackstone's chief investment strategist thanks for coming on. >> thanks for having me. >> he's jay-z by the way. >> i was jay-z before jay-z was? >> are you going to do the ice bucket challenge on this rally is this all she wrote? >> unfortunately i think i'm going to have to, because if you think about 2019, it was a year where every single macro risk was thrown at this market. brexit deadline, trade war intensify, manufacturing recession, earnings recession, yet markets didn't care. why? because 2019 was the year of the central banker in other words, central banks had the biggest pivot, balance sheet tightening, expansion, hiking rates to cutting rates. more than since any time since

alan greenspan warning in 2007 the world would possibly see double-digit interest rates to control inflationation was out of control. the real story was deflation. i don't get how, the thing is, maybe the word is for the 2020s, is just take it all with a grain of salt, right? >> you know, what the amazing thing is, you listed off a whole number of very intelligent people and those very intelligent people were very, very wrong and, so, you know, sometimes i think people have to think about it too hard. think about things too hard. they always tend to try to extend what happened in the past into the future. the economy doesn't just grow. it is constantly evolving. trying to figure out how it will esolve is very, very difficult. doesn't matter how smart you are, how many years you spent studying economics you can still get it wrong. liz: yeah. >> we saw that spectacularly. my own view the expansion is kind of long. we're 10 years into it. they don't last forever, but i don't see the typical imbalance that crop up before a recession. the federal reserve has interest rates fairly low. there is no

correction the fed cut 7 a basis points the big ral in 1999 but didn't really kick off until alan greenspan came in late and added a bunch of liquidity in the y 2 k crisis appear and that ended up topping up in march of 2000 to the extent that all the liquidity here is artificial and has to be pulled back markets may be overshooting. >> quick, though, is this inflation- dsh it reflation trade or settle willing up for deflation sounds lake a bubble that burst that is gets back to deflation even though oil going higher, copper going high are, et cetera. >> it's interesting. i'm looking at big structural charts like gold has a bull flag but tlt has a bull flag on it. if you look at the rate action here in q4 it hasn't confirmed the rally. actually the 10-year is more a bear flex. we have yet to see the reinflation in terms of mechanicing. >> sven, listen you've been strong on the market i know it's a tough market if you've been short. but you've come out been honest about the calls and where you feel about it. thanks for staying late overseas appreciate it. see you again. >> thanks, broien. >>

. >> alan greenspan, he was the most effective chair in the federal reserve. model for every financial official who followed him. volcker was not immune, has chair powell has not been immune, to presidential pressure he told a story about a year ago about being invited to the white house, ushered into the library room off the oval office, where president reagan and jim baker, his chief of staff were there, and told him in no uncertain terms, baker, not reagan, don't you dare raise interest rates in this election year, the year being 1984 volcker wasn't planning to raise rates at the time. he knew presidential pressure. imagine if he had been on watch and been raising rates as he did today. >> yeah. you know, one of the great passions that paul volcker had was defense of the fed as an institution and defense of the fed's independence he bristled back in the '80s when privately they expressed some sentiment of -- in the white house of how they wanted him to behave. i could only imagine if the president of the united states was publicly getting up and declaring a

the prosperity, and you know, paul volcker even after he was in the fed, i think it was 1987, alan greenspan volcker as fed chairman, but even afterwards paul volcker was a major political influence right on up through barack obama. i mean, he did the volcker rule and all of the things. he never once gave up on policy. i mean, he started with at least with him was in 1970 in the white house and he was a masterf ul person at that time as well. i thought his advice was extreme ly good on monetary policy when he was undersecretary of the treasury and when then he implemented it, it really works. i just wish he hadn't been so tall. i had to lean up into the sky to get to him. neil: he was a very tall guy and you mentioned the volcker rule and his concern and he expressed this in the last interview we had some time back that banks would become too aggressive with their investment activities and the like and there had to be a way to separate that but he was always afraid that he could re visit bad things if he gave them too much power. what do you think of that? >> i don't think he was right on th

. >> to try to be as quite as possible, do you remember alan greenspan briefcase tried to figure out say based on how carrying briefcase so many different things. >> going straight to the fed chair, jerome bowl. >> good afternoon everyone. to begin i would like to say a few words about paul volcker passed away earlier this week. paul volcker soared served federal reserve chair ferry 1979 to 1987 accomplished many things during his long and distinguished career at fed and elsewhere, of course, best known for leading title to tame double-digit inflation inherited as chair laying foundation for the prosperity price stability we enjoy today. but what is perhaps most admirable about him more than many accomplishments was character he believed there is no higher calling than publics, and dead indicates lion's share of life to it, with encourage, integrity tenacity he always pursued policies that he believed would ultimately benefit all americans. >> my colleagues and i continue to draw inspiration from his example. turning to day's meeting colleagues and i did is to leave policy rate uncha

don't miss an exclusive interview with former fed chair alan greenspan on "squk t re" at 10:30 stay tuned. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home. >>> all right, welcome back. one more look at the markets this morning the futures are indicated up across the board dow futures up by 26 points. they have been down by about 40 points when we came in s&p futures up by 6. the nasdaq up by 19. join us tomorrow right now it is time for "squawk on the street. ♪ you gave me a chance i would take it ♪ ♪ it's a shot in the dark but i'll make it ♪ >>> good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. coming off record highs for the major indices, four straight days of gains, maybe a fifth, as the futures are higher despite boeing lower on news that it will h

host: alan greenspan on cnbc earlier this month, here is the headline -- as inflation is inevitably goingrise as the deficit balloons over $1 trillion. will it? guest: yes. if you look at the structure of the debt, we talk about the intergovernmental debt where the government is borrowing from surplus social security taxes and paying it back to itself, more and more of the debt will be publicly traded treasury securities. if you look at the way that is structured, a lot of the federal bills, whicheasury mature in one year. inis not like it is all 30-year bonds with a set interest rate that we will be paying for the next 30 years. as the interest rate rises, the government will be rolling over these bills and notes that they are now paying a very low interest rate on, and those interest rates are going to jack up. that will accelerate the cost of the debt. host: a call from michigan. tim, good morning. caller: hey, steve, i cannot wait to hear your republican callers come calling in and saying how biased you are by having somebody like terry on. host: you must have been listening yesterday