Greenspan Shrugged

My response to Greenspans claims that he was helpless... at SeekingAlpha


When asked why he backed massive increases in federal spending under the Clinton administration, Greenspan responded that he feared that the massive inflows of capital from foreign markets would have otherwise caused (gasp) deflation. Remind you of anything? Of course, we couldn't have possibly of used this to pay off the debt, stop stealing from the SS trust fund, build out infrastructure, or any of several hundred possible uses that come to mind now.

Oh woah is us for not being able to stop those nasty Asian countries form sending us 90 pct of global capital outflows.. and of course we could also could do nothing about (or bother to notice) that we had gone into a negative savings rate. 2pct for my deposit? oh goodie!

A decent electrician knows not to wire everything together in one long serial circuit. You put in capacitors, fuses, etc. Greenspan and Co. have wired us all in line and said that now we can do nothing about it. Too big to fail? I say too stupid to continue existing. LTCM should have been a warning, instead it was the starting gun.

James Goldsmith on Charlie Rose in '94 warned us about this.... not building our infrastructure, sending our manufacturing and money overseas, and the fact that the notional value of trades in derivatives each night was more than the worlds GDP. Charlie just parroted Laura (now with Obama) Tyson and said that NAFTA was a great success and that the GATT/WTO would bring a new light to the world.... instead it has become our electric chair. The wires are still run in the form of the CDS chasm that we refuse to recognize still exists. We push money in the front door of AIG, and they drop it in the big hole that goes to their (not so secret) counterparties. UBS, Goldman, DeutscheBank, Rabo, SG, etc.

The objectivists were almost right when they followed the hollywood star struck Russian immigrant sycophant who changed her name to ayn rand and wrote novels to engratiate herself to the elites whose hinies she loved to kiss.... except we now find out that the average workers/savers are the Atlases, and Greenspan and friends are the looters/moochers.

If Greenie is right, then of course we must do what we can to stop these massive waves of cheap money from coming at us in the future. Globalism has been a disaster to the heart of our economy. Melamine laced dogfood anyone?

The amount of our debt being held by foreign govts has proven to be a noose around our necks, tightening enough that Hilary has to play nice and ask please sir, may i have another cup of money?

But don't expect anyone who is making billions without risk to suggest a change. Certainly not our private central banks share holders. Santelli was right, the Federal Reserve is no more federal than Federal Express.

Nor do I expect a word of warning from GE/Vivendi, The Mouse Network, or Rupert "i just married a chinese gal" Murdoch. They all have too much on the line to irk their communist/capitalist buddies.