dr. greenspan: i think it is up to the individual.know what the facts are very shortly. all i can tell you is that the principles on which i think we are to govern, and those clearly, unambiguously for an independent central bank which disregards the type of letters i used to get. in other words, if you took a vote of the populace as to how the central bank should function, everyone would be in favor of printing more money. road,w the end of the that is disaster. david: another important principle has been the benefits for everyone from globalization from free trade. where has the failure been in communicating those benefits to the people at the bottom of the food chain? dr. greenspan: that is basically our political system. it is not the job of the federal reserve to enunciate economic principles. it is the job of the president, those who areall specifically oriented towards finance to do it. that is not the job of the federal reserve. it is the job of the federal reserve to explain how markets work, to explain why free trade is a va

dr. greenspan: i think it is up to the individual., i don't like discuss hypothetical issues when we will know what the facts are very shortly. is thean tell you principles by which i think we and thosevern, for anmbiguously independent central bank which disregards the type of letters i used to get. in other words, if you took a how of the populace as to the central bank should function, everybody would be in favor of thing more money. we know what the end of the road is there. that is disaster. david: another important principle has been the benefits for everyone from globalization and free trade. inre has the failure been communicating those benefits to the people at the bottom of the food chain? dr. greenspan: that is basically our political system. it is not the job of the federal reserve to enunciate economic principles. it is the job of the president, whocongress, and all those are specifically oriented towards finance to do it. that is not the job of the federal reserve. it is the job of the federal reserve to explain how mark

dr. greenspan? >> yes? >> why are interest rates rising in the wake of the election? >> rising? yield moving higher. >> first of all, the rates we've seen are not only the negative interest rates but the long-term say the 10-year and 30-year and going down the rate structure have all been suppressed by various different forces. i don't want to get too involved in it, but the point here is that going back historically rates have been stable going back to ancient greece, for god's sake. they've been raised not significantly different from what we've seen the last 20, 30, 40 years. but that's human time preference which is stable, but it's a good deal higher than -- >> i was just wondering if you thought it was inflation or growth that was driving it. >> well, i was about to say that rates would have moved up irrespective of the fact of inflation beginning to move. the combination of both -- i mean, the 10-year yield spiked the other day. day before yesterday, i think. or was it yesterday? but these rates are going to move. they're way below normal. i've said recently i expect the

surveillance as well and chairman greenspan didn't forecast a single point estimate but alluded to higher yields to come including the quotable phrase, 5% yields. i would suggest dr amazing to me you have the maestro on predicting interest rates. to get interest rates anything close to that level you have to think of a very different world in terms of inflation, in terms of global growth and we're as far away from that now as we've been at any point in our career. the lessons of japan which i think are the template for what we're going through now in the broad developed world is long term interest rates can stay a lot lower post bubble even than alan greenspan had envisioned. tom: i set you up because of the chairman's love for the federal reserve system. how do you invest the investors of b.m.o. federal market to be in the market when there's so much doubt out there because of the higher rates. a n: throwing out a 5%, of black swan or trump win is a headline grabber. structural equities over the next several years are going to be very attractive assets especially those from an asset allocation basis able to provide equity income. we think equity income is a new