Just yesterday Alan Greenspan sharply warned the Bush administration about the dangers of "protectionism". He cut right to the pith and reminded us/them that we are dependent on foreigners for the financing of our huge trade deficit. Another stern warning was emitted within the last few weeks about the mammoth, and apparently growing, budget deficit. During this same time period, and forcefully again by three fed speakers during the last forty-eight hours, we are clearly told that any hike in domestic interest rates, even if economic growth surges, is something to bet against. The Federal Reserve will be accommodative. The Fed will keep rates low and it is reminding consumers and businesses of this weekly, if not daily. That is quite an inoculation job against the two most likely criticisms - that the Fed /is not loose enough *or* that the community was confused about their intentions - should the dollar and the economy collapse.

Here is my point and where, I believe, the evidence points: Alan Greenspan sees deep economic trouble ahead and is positioning himself and the Federal Reserve for a survival fight. He knows full well the history of booms and busts since the creation of the Federal Reserve, the exact economic spasms it was designed to avoid. He knows full well that Central Banking itself, and even the fiat money system, will come into question should a megabust be upon us. And he knows that there are many who will de-marginalize critics. In his heart he fears Ron Paul because in his mind he used to think like him.

And maybe he still does.