Somewhere along the way the US economy seems to have slipped the bonds of sanity, and moved into a strange kind of fantasyland.
With a twin deficit of one Trillion annually, Greenpsan still insists that more "accomedation" is necessary; even to the point of leaving rates at 50 year lows!
TAKEN AS A WHOLE, YOU HAVE TO ASK: WHAT'S WRONG WITH THIS PICTURE?
Furthermore, Greenspan's unwillingness to directly criticize the TAX CUTS, but his constant criticism of spending for "entitlements" has got to cause concern.
STILL, I THINK THE BEST AND MOST LIKELY PROOF THAT MR. G HAS GONE "AROUND THE BEND" A BIT IS HIS PREDICTION ON JOBS.
Everyone knows that what's happening to the US job market is STRUCTURAL, NOT CYCLICAL.
GOOD JOBS ARE NOT COMING BACK.
AND WORSE, EVEN THE LOW WAGE JOBS WILL GET FEWER AND FEWER, AS THE US ECONOMY BECOMES MORE AND MORE LIKE THAT OF A LATIN AMERICAN PLUTOCRACY.
WHILE MANY ORDINARY PEOPLE WILL SURVIVE ON LOW WAGES AND SHOPPING AT THE DOLLAR STORE;
SOONER OR LATER, SOME KIND OF SOCIAL SAFETY NET WILL BE REQUIRED!
One thing that Greenspan and others in the Wall Street Cabal fail to notice is that THERE ARE LIMITS ON HOW FAR DOWN YOU CAN PUSH PEOPLE!
AND, ESPECIALLY IF THOSE PEOPLE ARE MIDDLE CLASS.
BECAUSE SOONER OR LATER, THEY BECOME HOMELESS, NOT JUST JOBLESS!
THEN WHAT?
Dubya is going to spend hundreds of millions on his re-election bid this year;
WHAT THE CASH STRAPPED DEMOCRATS NEED TO DO IS ORGANIZE A "MARCH ON WASHINGTON" THIS SUMMER;
BY THE UNEMPLOYED, THE UNDER-EMPLOYED, AND THE HEALTH CARE UNINSURED.
AND, ALL OTHERS AGGRIEVED BY THE BRUTALITY OF THE THE CURRENT US ECONOMY.
These are likely the final days of the WALL STREET ONLY ECONOMY;
When President Kerry takes over in January 2005, he will have a job on his hands that will approach that of FDR in 1932.
AND, THE FIRST OFFICIAL ACTION OF THE NEW PRESIDENT SHOULD BE TO ASK FOR GREENSPAN TO RESIGN!
ENOUGH IS ENOUGH. AND TOO MUCH IS WAY OVER THE TOP.
http://www.federalreserve.gov/boarddocs/hh/2004/february/testimony.htm
