• 9 hours Why Silicon Valley Is Moving To Toronto
  • 13 hours Hong Kong Residents Are Fleeing To Taiwan At A Record Pace
  • 16 hours Trickle Down Tax Cuts Aren't Helping Bolster GDP Growth
  • 1 day Wealth Gap Widens Between Baby Boomers And Millennials
  • 2 days How Investors Are Playing Uncertain Markets
  • 2 days Demand For Cash Is On The Rise
  • 2 days The Best Way To Ride The Gold Rally
  • 3 days Corn Industry Reeling After Shocking Ethanol Decision
  • 3 days Gold Miners Eye Further Upside
  • 4 days Alibaba Exec Sets Record With $3.5 Billion Brooklyn Nets Purchase
  • 4 days Smart Contracts: The Tech Reshaping Entire Industries
  • 5 days Protests Threaten $5 Billion Peruvian Copper Mine
  • 5 days Why Wealthy Kids Are Getting Into College For Free
  • 6 days Is Is Too Late To Get Into The New Gold Boom?
  • 6 days Solar Tech Breakthroughs Spark Surge In Adoption
  • 6 days These Rare Stones Are About To Become Priceless
  • 7 days Why Silver Miners Aren’t Living Up To Expectations
  • 7 days WeWork Reveals Huge Losses Ahead Of IPO
  • 7 days American Education Continues To Fall Behind China
  • 8 days EV Sector Needs 250% More Of This Metal By 2030 Just For Charging Stations
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  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