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Greenspan Worries That ‘Crazies’ Will Undermine the U.S. System
Former Federal Reserve Chairman Alan Greenspan voiced concern that the U.S. economic and political system could be undermined by what he called “crazies.”
“It is the worst economic and political environment that I’ve ever been remotely related to,” Greenspan, 90, told a conference in Washington Tuesday evening sponsored by Stanford University and the University of Chicago.
Greenspan Worries That ‘Crazies’ Will Undermine the U.S. System
Former Federal Reserve Chairman Alan Greenspan voiced concern that the U.S. economic and political system could be undermined by what he called “crazies.”
“It is the worst economic and political environment that I’ve ever been remotely related to,” Greenspan, 90, told a conference in Washington Tuesday evening sponsored by Stanford University and the University of Chicago.
Today it's all about the Fed or Central Bank Planners. We gave up a Free Market Economy for a Central Bank Managed and Planned Zombie Economy. We are more socialist today then China is.
We are not socialist. We have some socialist-type programs that are common to capitalist economies. And we have private ownership of the means of production for private profit, so we have capitalism. Granted it's a late-stage degenerate capitalism, but it is capitalism.
Uh, guess who he is talking about?
And guess who is largely responsible for the last recession?
You and He.
Alan Greenspan is having nightmares every night and he knows that he failed, that he didn't had enough courage to keep raising interest rates after Business Cycle ended back in 2001. He want's to come out clean, he knows what needs to be done, he is worried about those "CRAZIES" who are thinking that low interest rates and more debt will lead us to prosperity and we will all live happily ever after, wealth is going to rise and we won't even need to work anymore, we can just print money, invest in a stock market that will always go up and FED will protect us all, take care of us like some spoiled children.
Here is a very valuable lesson for you about the economy that you want hear from mainstream economists. You see the entire economics profession is laboring in darkness BECAUSE of the belief that the goal of the economy is to 'grow' perpetually. Nothing in nature grows perpetually. Everything in nature grows and then rests. There is a Growth Cycle and a Rest Cycle. These two always go together. So any theoretical base that does not assume a system that cannot grow perpetually is going to run into problems as soon as the Growth Period ends, as it did in 1929, 2001...
All the things central banks have tried to do since 2001 have failed because no growth is possible in the Rest Season. Attempts to grow the economy in a Rest Season is doomed to fail, and will ALWAYS fail.
Our understanding of reality are almost all urban now, since we have lost touch with nature. We dwell on Man now instead of Nature, Man's laws, Man's desires, Man's needs. This is natural but impels us toward ignorance, because we lose contact with the source of Nature's laws.
You want to know how economy works, how stock market works, then learn the LAW OF NATURE.
In the words of the great 20th century economist, John Prine...
Blow up your TV. Throw away your paper.
Move to the country. Build you a home.
Plant a little garden. Eat a lot of peaches.
Try and find Jesus on your own.
Here is a very valuable lesson for you about the economy that you want hear from mainstream economists. You see the entire economics profession is laboring in darkness BECAUSE of the belief that the goal of the economy is to 'grow' perpetually. Nothing in nature grows perpetually.
That is potentially an interesting theory for some. But capitalism must grow to thrive. That feature is intrinsic to capitalism. Certainly it is not a straight line. It grows in fits and starts, but if you stop capitalism from growing altogether, serious economic problems develop, progress stops, and degeneration sets in. BTW, a tree does not ever stop growing until it dies although it slows with the seasons and later increases, sorta like the economy does although it's a poor analogy in some respects. A person never stops growing until full maturity is reached. "Perpetually"? Nothing exists "perpetually" (eternally) including suns and galaxies. So lack of "perpetual" growth is not a surprise. Maybe you meant "constant" growth.
Quote:
All the things central banks have tried to do since 2001 have failed because no growth is possible in the Rest Season. Attempts to grow the economy in a Rest Season is doomed to fail, and will ALWAYS fail.
Don't you think this is an unusually long "rest period"? And you don't see the increases in the GNP and in production?
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You want to know how economy works, how stock market works, then learn the LAW OF NATURE.
That will tell you little or nothing about the effects of interest rates, debt, tax law, etc. and less about the fundamental cause of our economic problems.
I don't understand why some of you are even posting in Economic forum when your understanding of Economy is poor at best. Maybe you should all move to GARDEN forum and post there, it could be a better fit for you.
The illusion is that America has recovered economically, or is recovering. It is not. It cannot recover until it destroys an astronoical amount of debt. To destroy debt, the FED must have the courage to raise rates. The FED does not have courage. Higher rates will be insupportable politically, because they will lead to deflation and default and chaos and perhaps to civil war. We have over 380% total debt to GDP. We had 310% Total Debt to GDP in 1933 and it took us until 1947 (with a Great Depression and a World War, talk about AUSTERITY) to get that debt down to ground zero, 130%. How do we get our 380% down to 130%? Only one way: higher interest rates. But higher interest rates will also give us A Great Depression (which we have been runing from since 2008, 'borrowing' money from the future to spend today in order to avoid this fate) and perhaps another World War to get there.
Low interest rates, ZIRP, QE1,2,3, NIRP are a stalling tactics, they fix nothing. But they buy time. And you know how politicians are: what you can put off till tomorrow, put off till tomorrow. Especially when what you are trying to put off is the complete deconstruction of a world system that is on life-support, which life support IS ZIRP or NIRP tomorrow.
Remember, there is no such a thing as a FREE LUNCH!!!!
Today it's all about the Fed or Central Bank Planners. We gave up a Free Market Economy for a Central Bank Managed and Planned Zombie Economy. We are more socialist today then China is.
Look what just lousy talk about 0.25 interest rate increase does to the markets. This is not going to end well for all of us, even our children!!!!
What are the signs of a Planned Zombie Economy?
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