Greenspan has a new mojo! DEBT IS GOOD! TAXES ARE BAD!
Or, at least DEBT is infinitely "sustainable" under our new global
economic system of risk.
It is reported that Greenspan is now less concerned about the
deficits than about tax increases. Indeed, he wants more tax cuts as
per Dubya's plan, even if debt balloons at all levels.
SO, HAS MR. G FINALLY GONE AROUND THE BEND?
Well, if I were running things both Mr G and Dubya would be required
to have some "congnitive testing" done to see if they are "compos
mentis" for high stress jobs! But fortunately, I'm not running
things!
Anyway, Greenspan's new theory of economics is DEBT DOESN'T COUNT
ANYMORE BECAUSE WE HAVE FIGURED OUT HOW TO SPREAD RISK GLOBALLY.
I CALL THIS THE "BIG RAT HOLE THEORY" OF THE ECONOMY.
Greenspan notes that despite the recent debt explosion there have
been no major finanical collapses. Greenspan attributes this to
the use of AMAZING DERIVATIVES, that no one understands.
APPARENTLY, WHAT HAPPENS IS THE GLOBAL ECONOMY HAS A "BIG
RAT HOLE" AT IT'S CENTER, DOWN WHICH BAD DEBT DECENDS, WITHOUT
CAUSING ANY DISRUPTION IN THE SPACE-TIME CONTINUM OF THE GLOBALISM.
In other words AMERICANS CAN SPEND like mad and go bankrupt hand over
fist, and all that happens is the price of bread in Mongolia goes up
by a penny.
THE BIG RAT HOLE AT THE CENTER OF THE NEW GLOBAL ECONOMY JUST
SWALLOWS UP DEBT LIKE AN ASTRONOMICAL "BLACK HOLE!"
THE DEBT JUST "DISAPPEARS" AND PERHAPS REAPPEARS IN SOME OTHER PLANE
OF THE ECONOMIC UNIVERSE FAR, FAR AWAY.
According to Greenspan as long as ASSET INFLATION IS INFINITE;
DEBT CAN BE INFINITE!
Still, won't the paper money suffer over time? Of course, it will,
because that's how we get the beloved asset inflation that makes the debt magically disappear.
THIS IS TRULY A NEW THEORY OF ECONOMICS! CALL IT GREENSPANOMICS!
OR, CALL IT THE "BIG RAT HOLE THEORY OF DEBT!"
Or if you're a traditionalist, just call in good old fashion CURRENCY
DEBASEMENT LEADING TO AN INEVITABLE STAGFLATION!
Sorry, Mr G there is no "free lunch" in the DISMAL SCIENCE.
