Skip to content


Why Must The Media Keep Trotting Out Greenspan And His Economic Lunacy?

The Pragmatic Capitalist
Business Insider
Aug 2, 2010

…and we continue to talk ourselves off the edge of the cliff. For the second week in a row Meet The Press trotted out the most financially incompetent of the financially incompetent and placed them on their undeserving pedestal. 

Last week it was Tim Geithner, the veritable fox in the hen house of the financial crisis.  This week it was Alan Greenspan, one of the grand orchestrator’s of our financial industry’s deregulation and the most vocal advocate of the virus that is neoliberalism. 

This man has poisoned our economy for almost 5 decades (and he has admitted that his models were “flawed”) yet we continue to worship at the altar of Greenspan….It’s worse than the John Meriwether’s of the world who continually reopen hedge funds after driving the last one into the ground.  What in the world is wrong with Wall Street and our financial system?  Are we really so incompetent as a whole that we find it is okay to consistently reward and rely on those who have consistently failed us?  Pardon my frustration, but this is beyond madness.  Why do these people command such obedience?

This week, Mr. Greenspan was once again out discussing monetary policy despite the fact that he has already admitted his models were flawed.  20 years of mistakes and yet we still hang on his every word.  Mr. Greenspan is still latching onto this insane idea that bond yields are going to spike as soon as the bond vigilantes awake from their slumber:

MR. GREENSPAN:  Well, the problem there implies that the government has control over those rates, meaning the Federal Reserve and the Treasury Department, in a sense.  There is no doubt that the federal funds rate, that is the rate produced by the Federal Reserve, can be fixed at whatever the Fed wants it to be, but which the government has no control over is long-term interest rates, and long-term interest rates are what make the economy move. And if this budget problem eventually merges to the point where it begins to become very toxic, it will be reflected in rising long-term interest rates, rising mortgage rates, lower housing.  At the moment, there is no sign of that, basically because the financial system is broke and you cannot have inflation if financial system is not working.

First of all, as the issuer of bonds denominated in their own currency, the US government can offer interest bearing debt instruments at whatever maturity and interest rate it pleases.  As I’ve explained before, the bond market serves no fiscal purpose – it funds nothing.  It is purely a monetary tool for the Fed to drain reserves and maintain control of interest rates.   This actually renders the issuance of long-term bonds fairly meaningless.  The reserve drain could be done with a CD, however, the government chooses to issue longer dated notes as well as short duration notes.  If the government wanted to stop issuing 10 year notes they easily could (they did so with the 30 year and nothing happened to the bond market).  Mr. Greenspan clearly thinks the bond market funds our spending and that this raises a solvency issue in the USA.  His model is “”flawed” (not my words!).

He continued the interview by discussing the need for fiscal prudence and the expiration of the Bush tax cuts (an effective tax hike):

MR. GREENSPAN:  Look, I’m very much in favor of tax cuts, but not with borrowed money.  And the problem that we’ve gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day, that proves disastrous.  And my view is I don’t think we can play subtle policy here on it.

This is more madness from a man who has been terribly wrong about everything for the majority of his career.  The bond market is not “borrowed money”.  Will China really stop buying our bonds?  Will Japan stop buying our bonds?  And if they do, who cares?  It’s their loss.  They can leave pieces of paper with old dead white men on them sitting in their bank vaults earning 0%.  The Fed will continue to find buyers of government bonds in the USA (because the reserves created via government spending are ALWAYS there to be drained because the government effectively put them there!).

How many more times does Mr. Greenspan have to be wrong before we stop listening to this fear mongering?  Mr. Greenspan wants to raise taxes and cut the deficit because he incorrectly believes the bond vigilantes are taking a nap.  I am all for fiscal prudence (via efficient and effective government spending), but tax hikes serve very little purpose in this time of private sector de-leveraging.  It will only exacerbate our debt problems at the private sector level and certainly will not make us more solvent at the government level.  Greenspan has the gold standard on his mind and it has resulted in a massively flawed model for most of his career.  The gold standard is dead, it is not coming back and we need to stop allowing these archaic thought processes to influence government policy.

Related Posts with Thumbnails

Posted in Finance & Economics, Politics.

Tagged with , , , , , .

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's happening big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale".

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally IU know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know people in court at the moment for the content they had on their secret private group. Use Telegrams secret chat mode to chat on, or if you prefer if you need to or buy a dumb phone with nothing for the NSA to hack into if you are that paranoid.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering bollox) then I could do with some. Even if it's just £5 or tick the monthly subscription box it will be much appreciated. Read on to find out why/

Why?

Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent
false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material. Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and #altnews alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?


0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.



Some HTML is OK

or, reply to this post via trackback.



css.php