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ALAN GREENSPAN: U.S. May Soon Reach Borrowing Limit. Former Federal Reserve Chairman Alan Greens?

By Glenn Reynolds

ALAN GREENSPAN: U.S. May Soon Reach Borrowing Limit.

Former Federal Reserve Chairman Alan Greenspan said the U.S. may soon face higher borrowing costs on its swelling debt and called for a ?tectonic shift? in fiscal policy to contain borrowing.

?Perceptions of a large U.S. borrowing capacity are misleading,? and current long-term bond yields are masking America?s debt challenge, Greenspan wrote in an opinion piece posted on the Wall Street Journal?s website. ?Long-term rate increases can emerge with unexpected suddenness,? such as the 4 percentage point surge over four months in 1979-80, he said.

Indeed. Related: Gold hits record high.

Full post as published by Instapundit.com on June 18, 2010 (boomark / email).