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Greenspan warns of threat of “fiscal crisis”

FORMER US Federal Reserve chairman Alan Greenspan yesterday said there was a critical threat of a “fiscal crisis” as he backed the creation of a board to make tough choices.

Greenspan said he believed a proposed across party committee to enforce federal spending cuts was “an excellent idea”.

“I trust any such taskforce will address the very thorny issue of the asymmetrical consequences of too much or too little fiscal restraint,” he said.