dr. greenspan: the key issue is to what extent is it growing. reason why i think stagflation is relevant is there are two forces going on. what the money supply which has been growing at 6% annual rate very steadily earlier this year tilted up and we are now close to 9% annual rate. that is unnecessary but not a sufficient condition to get the inflation rate going quickly. but we are also finding the labor force is running out of extra workers. when wages are moving in the money supply is accelerating, those are critical issues. they are on the move at the evidence on see no the part of either republicans or the democrats or anybody else for that matter willing to come to grips because is politically hot potato. david: doubles former federal reserve chairman alan greenspan. i to away a warning from the fed. we can see growth in the equity markets but not real fundamental, underlying growth but we're not investing in the increase productivity because we're spending money on entitlements. jonathan: i wonder if he would've hiked interest rates yest

dr. greenspan said has been growing at .5% over the last five years. why?ooking at the data from the bureau of labor's, i chose that people, skills, stuff, and howucture, oil rigs this all gets used. people, stuff and how it gets used. this is been the part that gets week. we haven't been investing. it is actually declined in last year for the first time an old over 50 years. and that means for a company , 50 computers with 100 people and 48 computers. fewer things in place for a unit of labor. ofthe key for the future growth in the united states is to see investments rise in stuff and for those to be productive assets. and for the people to use their skills to make those things produce things. capitalism is critical. where does that money come from? we have been leveraging up. where do you get the money to invest in capital? tony: this is where the optimism is in the stock market. that the u.s. government will spend money directly on them for structure but hopefully good spending. act, 48 billion dollars of spending went towards the structures and him for