The Telegraph is highlighting a story in which former Federal Reserve agent provocateur, Greenspan, denounces Trump, stating that he will return the US economy to 1970 levels, and stating that the EU has destroyed itself by supporting failing economies…
Of course this is the same Greenspan who was labeled the single handed catastrophe for a roller coaster economic joy ride during his tenure. To give him credit, maybe he feels he knows best based on the results of his abysmal failed decisions…
Specifically, Greenspan notes that ‘America’s huge debt pile’ can not withstand the Trump infrastructure policies. Well gee whilakers, has he been living in a vacuum? America’s debt was $2.34 trillion when Greenspan took over the Federal Reserve in 1987, rising to $8.5 trillion – an increase of just under 400% by the time he threw in his jacket – 2006. After, during the reign of the Obama rule of order, the debt increased to $19.5 trillion – again more than doubling!
Why wasn’t Greenspan making any noise before? What policies led to an increase of 900%? According to Greenspan it was all China’s fault… Sound like a familiar game? Blame?
According to some theories, the deficit as a percentage of GDP is more important than the actual debt, which measures the ability to payoff the debt. In addition, the Baby-Boomer generation was considered an economic boom as they created a Social Security Surplus from which the government borrowed to pay ‘other expenses’. So according to the ‘government’, it ain’t so bad… really we promise…
But the age of the Baby-Boomers came to an end and government, for all their uncanny wisdom looked no further, didn’t plan ahead, didn’t think about their policies that would bring it all to a screeching halt. And here we are – staring at a massive mess!
Over and over again we hear the reasoning Germany and Sweden give for allowing massive refugee’s into their hold – it’s to offset the diminishing population as childless couples became the norm after the Boomers and the economy is going to spiral and tank! They need these young refugees to ultimately support their economies. Of course, they forgot to note that most of these refugees don’t want to work, aren’t qualified to work, have no language skills, and an agenda of ‘hate’.
As in – oops.
The Congressional solution? Attack Social Security, of course! Brilliant! Increase the age of retirement, decrease the monthly payback of our money, and leave Congressional pensions alone and healthy. YUM! And a little icing is always in order – give themselves a few raises as a pat on the back for their in-depth wisdom in coming up with this solution… while they whine that their meager salaries, benefits, pensions, and millions in assets cannot cover their day to day living…ta-da.
So what is Greenspan’s solution, this man of infinite knowledge? He states that we should double or triple the capital requirements of banks so that they will be discouraged from making loans. Huh. Isn’t that exactly what Obama did for eight years that created a vacuum of empty growth and the near decimation of the middle class? Once again, the Wizard of Oz speaks behind the curtain of smoke and mirrors…
According to John Taylor, a former colleague of Greenspan, and a professor at Stanford, everything Greenspan did was the polar opposite of what he should have done. While Greenspan blamed China for his failed policies, Taylor blames – Greenspan.
According to Taylor, the boom-bust rollercoaster that Greenspan created could have been avoided if he had simply followed the methodology initiated by his predecessor. Of course, there is the alternate theory that the Federal Reserve is really just a private boys club and should be eliminated altogether.
By comparison, the EU has the European Central Bank, which was only just established in 1998 to do what the Federal Reserve does in the US. As of today, their interest on reserves is -.4%, and their bank rate is 0%. Sound like a winning strategy?
Despite it’s short life, the ECB is under considerable criticism for it’s lackluster performance, not to mention it’s controversial President, Mario Draghi. Previously from Goldman Sachs, a member of the Trilateral and Bildeberg group, a member of The Group of Thirty, and quite chummy with the Rockefellers, the cabal would seem to be a part of the shadow government, if not the leads.
FYI; Bernanke, Greenspan, Volcker and Yellen were all chummy with the same cabal… ALL.