Greenspan may say
"The developing protectionism regarding trade and our reluctance to place fiscal policy on a more sustainable path are threatening what may well be our most valued policy asset: the increased flexibility of our economy, which has fostered our extraordinary resilience to shocks,"
But that's nothing more than a sprinkling of truth in an otherwise bald-faced lie.
Technically he's correct, protectionism is not good for our economy and the debt is a huge problem. However, this completely ignores the Fed's role in creating our current economic problems.
You might say the U.S. economy is flexible because after the tech bubble burst Greenspan inadvertently funneled the brunt of it away into speculation in the real estate market by keeping interest rates artificially low. The problem is that when this bubble burts there will be nowhere for that money to go. We may be flexible, but right now we're looking at the straws that will break the camel's back.
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