• 385 days Could Crypto Overtake Traditional Investment?
  • 389 days Americans Still Quitting Jobs At Record Pace
  • 391 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 394 days Is The Dollar Too Strong?
  • 395 days Big Tech Disappoints Investors on Earnings Calls
  • 396 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 397 days China Is Quietly Trying To Distance Itself From Russia
  • 398 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 402 days Crypto Investors Won Big In 2021
  • 402 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 403 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 405 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 405 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 409 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 409 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 410 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 412 days Are NFTs About To Take Over Gaming?
  • 412 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 415 days What’s Causing Inflation In The United States?
  • 416 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Looking into the Heart of Alan Greenspan

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.

Back to homepage

Leave a comment

Leave a comment