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A Revisionist Greenspan Accuses America Of Weakening The Dollar
Greenspan chimes in on the biggest debate of the post-Bernanke era, and says "America
is also pursuing a policy of currency weakening." Duh. At this point we would love to ask the dear demented revisionist: just what on earth was your policy, Mr. ex-chairman, and why is "it" really known as the Greenspan Put? At the end of the day, does all the Fed do, aside from bubbles of course, is just create insane, cannibalistic, and completely revisionist, apparatchiks?
Greenspan's garbled, meandering and completely meaningless essay below.
As the Group of 20 meets to seek common ground on protectionism, this year’s euro crisis will hover over their deliberations. The crisis that erupted in Greece has again exposed the fragility of a key element of currency-pooling arrangements: the important value created by a pooling of interests tends to be distributed disproportionately in favour of the financially less collegial members of the pool. Thus, unless restrained, too often, some members will try to exploit their advantage, as Greece brazenly did in recent years.
The restraint imposed on the euro area by the stability and growth pact was supposed to limit euro-denominated sovereign borrowings. The pact, confronted with its first big test in 2003, failed. The cumulative consequences of the failure emerged this year as a fiscal crisis in Greece and other euro members. The benevolent mood accompanying the creation of the euro was nowhere to be seen
Fortunately, threats to European monetary union, so far, have been successfully fended off by the herculean actions of the European community assisted by the International Monetary Fund. Currency problems have now spread to the global financial system which, like the euro area, requires adherence to certain rules to sustain it. It is not only the well publicised friction between China and America – both may be right about each other – but also by the drive for competitive export advantage through currency manipulation in a world where a zero global current account balance permits none.
China has become a major global economic force in recent years. But it has not yet chosen to take on the shared global obligations that its economic status requires. Chinese policymakers still believe, incorrectly in my view, that if they cannot keep their currency suppressed and exports booming, their country faces economic contraction and dreaded political instability. But China also realises it needs the global market to prosper, and should widespread protectionism take hold, its prosperity would likely be one of its large casualties. China seems to be seeking a balance in which the renminbi appreciates against the dollar, but only modestly.
America is also pursuing a policy of currency weakening. The suppression of the renminbi and the recent weakening of the dollar are, of necessity, producing firming exchange rates in the rest of the world to, as they see it, the rest of the world’s competitive disadvantage. Something has to give in this arena of zero-consolidated current account balances.
One of the least heralded events of the past two years has been the recovery and vigour of global trade. The ratio of global exports to gross domestic product that fell sharply during the crisis had fully recovered by the second quarter of this year. Preliminary estimates for the third quarter, however, suggest a modest slowing.
For a half century or more, global trade has risen faster than GDP. That is one reason the Chinese development model, based on rapidly increasing global export markets, and earlier, the paradigm of the Asian tigers, have been so successful. But even without protectionism, there are clear upside limits to the growth rate of global trade. Protectionism would accelerate that slowing.
Those who wish to read more of this aneurism-inducing nonsense, may do so here.
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Pot meet kettle.
News flash: you are both black
What if both are made of aluminum?
then they would be worth more every day thanks to the currency weakening.
Powerful people often have amazingly thick blinders and are surrounded by people who reinforce them. He likely is being completely sincere without noting the hypocrisy.
Mediocre intelligence and CYA motivation invariably lead to meaningless gibberish.
Yeah, that was incredibly poorly written. The Maestro needs an editor.
And a more fitting nickname. Monstro? Intellectual Masturbastro?
"Traitor" will do just fine, I think.
"dear demented revisionist" - well, two out of three fit
"Greenspanian ad nausium".
I guess when you have enough people kissing your ass for a long enough time, you forget that you really are just a tool for more powerful and smarter people.
This guy is like Bill Clinton. He never goes away.
Neither do the really bad STDs......."Securitized Toxic Debts"
thank you. my sentiments exactly. just go take a cruise or go to a cocktail party or maybe even visit berlusconi and get yourself some nookie..
Berlusconi has no shame. That's ok. He is a good Catholic boy and he goes to confession on Friday's and tells the priest he was a very, very bad dirty old man.
The wife and I were speculating on the shortage of 17-year-old Morroccan belly dancers here in rural Minnesota just the other day. Anyone know where they all are these days? :>D
You can't create a legacy after the fact and shift off the blame. Too late old fellow. We know who to blame and you are way up on the list,
I contend that he brought down the whole system. Put them on this path. How else could one man do that other than from the inside? Ayn Rand would be proud if this eventual end justified the means...
Believe it or not I've thought about this as well.
But then he married Andrea Mitchell and I knew he was completely clueless ;-)
As ugly as he is, Greenspan could have married some sweet arm candy but he married somebody uglier than him. Thank God the bitch was barren at the alter or the, ahem, equivalent
OT, I have to say that is one of the most interesting avatar handles I have encountered in my 20 years of this interwebs/bbs's thingy...the imagary is...
Can I steal it for my next band name, or at least a song that's a'brewing now?
All good...:)
You should see my meat curtains.
this is what bix weir of roadtoroota proposes. i see greenspan such an asskisser and sycophant that I find it hard to believe he could have the spine to do that...
She loves power. That is the juice for her. Always was. She likes to be seen on his arm around inside the beltway , when they go to parties etc. He is her own little god.
The man is pure evil. He knew the truth and spit right in its face
Yep. See http://www.gold-eagle.com/editorials_02/heller052102.html for a much earlier leap to the same conclusion.
He's a real Jekyll and hide character
What did this fucking moron expect.... He was at the wheel.
He can't believe that uncle ben needs to drop the value of the dollar in the face of the credit bubble he created on smoke and mirrors ...
1995
-First Credit Default Swaps (CDS) and Collaterized Debt Obligation (CDO) structures created by JPMorgan, led by Blythe Masters.
-JPMorgan leads industry transformation away from relationship banking towards credit trading. Goal is higher returns without assuming buy and hold risk.
-Accounting and regulatory arbitrage generates significant revenues.
-Shifting of credit risk off bank balance sheets by pooling credits and remarketing portfolios, and buying default protection after syndicating loans for clients.
1996
-Single name CDS market takes hold and starts to grow.
-KMV model (quantitative correlation analysis) relates balance sheet debt vs. market value of debt vs. probability of default. In 2001 KMV model shows Enron is BBB-C rated when S&P rating shows AA. KMV model proves to be more accurate than preceding default models.
-Rise of Financial Guarantors.
-New strategy = build portfolios of debt securities, then package and sell off tranches based on default probabilities. Slice and dice to generate revenue for bank, customized risk/return profiles for investors.
-ABS, CDS, emerging market debt all wrapped and sold off in tranches.
1998-1999
-Basket portfolio trading begins.
-Buying and selling the entire debt capital structure takes hold.
-New CDS contracts allow hedging below-investment grade and high yield loans.
-ISDA updates its CDS confirmation document and supplements to reflect market needs.
-CDS market becomes increasingly standardized and volume increases significantly.
2000-2001
-Volume of CDS contracts trading ($100 billion) far exceeds volume of cash bonds ($30 billion), creating a risk of price squeeze on defaulted bonds used for physical delivery.
-First cash settlement CDS terms used to avoid dangers of physical settlement.
-End of dot.com boom causes waves of growth company defaults. Investors realize the increasing importance of credit protection.
-Rating arbitrage strategies gain popularity, taking advantage of time delay in rating agency downgrades and upgrades using CDS contracts for speculation.
-Credit Linked Note (CLN) market in Europe grows rapidly, paving the way for rapid CDS growth.
2002
-CDX index created by dealers.
-JP Morgan and Morgan Stanley issue CDS indexes.
-Creation of CDS on tradeable credit indices causes massive leap in transaction volumes (100%+ per year).
-Internet revolution and the rise of distributed computing makes complex mathematics easier. Structured credit can now be done from anywhere on the planet, reducing capital demands and allowing smaller players and emerging markets to enter the sector.
-Rise of Hedge Funds: Number of funds increases from 4000 in 2002 managing $2 trillion to 8000+ managing $4 trillion. This creates intense demand for new structured products with higher yields.
-Quiet deconsolidation wave begins with "outsourcing" of risky strategies by investment banks to separate entities formed for the purpose of generating higher yields. Also exposes the industry to potential wave of credit default risk.
-Greater number of products, but less liquidity means higher transaction revenues but potential liquidity crises ahead.
-Questionable risk management of complex strategies, interlocking ownership, high leverage, and secrecy of hedge fund industry lays the groundwork for potential market shocks. 2003
-ISDA definitions now the market standard.
-Collaterized Debt Obligation (CDO) market expands.
-Fleet Bank middle market group first to package illiquid private company loans and sell off tranches to investors. Industry follows by packaging everything possible.
-Accounting vs. Auditing vs. Sarbanes-Oxley (SOX) issues.
-Systematic Risk becomes apparent: Huge restatements due to vendor/buyer revenue accounting, Enron balance sheet/special purpose vehicles used to securitize assets. FASB 113 Financial Insurance regulation leads to MBIA earnings restatement.
2005
-ISDA creates definitions on CDS of ABS.
-Delphi default uncovers significant counterparty risk and problems with price squeeze on defaulted bonds used for physical delivery. Several hedge funds and broker-dealers take large losses as buying of defaulted bonds for physical delivery creates a "price squeeze". Back office processing and documentation failures cause long delays in settlement. Systematic risks become highly evident and fear of future financial crises rises.
-U.S. Fed Chairman issues edict to major credit market players to clean up documentation and settlement procedures or face halt in trading. Industry responds with positive and intense efforts.
-CDS contracts are still an over-the-counter (OTC) market only, except for limited retail market in Australia.
-Dramatic rise in pooling, tranching and re-marketing risk using CDO, CDO-squared (CDO^2), Nth-to-Default, and other Special Purpose Vehicles. Extremely lucrative business for major broker-dealers and specialty fund managers.
2006-present
-Industry-specific indexes developed: CMBS, ABS (ABX), High Yield (100 names)
-Counterparty risk expands to include broker-dealers, multinational corporations, hedge funds, insurers.
-Large money center banks with huge balance sheets no longer needed to anchor new debt issues due to the broad availability of credit derivative risk transfer products.
-Credit derivative volume has expanded exponentially to roughly $26 trillion, according to ISDA.
-BASEL II drives increasing compliance to minimize credit risk, market risk, and operational risk.
-FASB 133 and IAS 39 compliance emphasizes high dependence on credit default models.
-Consolidation of Guarantors drives up competition and drives down risk premiums in new bond issues.
-Increasing movement toward cash settlement/auction pricing of defaulted credits upon credit event to "avoid the squeeze."
-Markit, CDX, and iTraxx are now standard pricing sources, further enabling broad trading of credit derivatives.
-Chicago Mercantile Exchange (CME) considers listing standardized single name CDS contracts to create the first large retail market.
-DTCC clearing system development increases speed of trade clearing and settlement, reduces costs and operational risks.
-Notional value of single name CDS outstanding now $19-25 trillion versus $40 trillion in bonds.
-Dura default and auction in November 2006 goes smoothly, showing the value of improved standardized industry procedures and clear documentation.
-Hedge fund counterparty risk remains. Large broker-dealers still exposed, as they lend to hedge funds through their prime brokerage arms.
-Permanent Capital Vehicles (PCVs) are formed to invest in credit markets. Investment money is locked up for 5 years or more, which allows managers to do longer term arbitrage, capital structure, and cycle plays.
Outstanding Summary Spalding - Well done - thank u for the post!
Sorry
Should have posted link ...
http://www.financial-edu.com/history-of-credit-derivatives.php
from the link...
1978
-Glass Steagel Act passed.
Hmmm....
I second that
So during some free time today I took a stroll down to 33 Liberty. What struck me - and is well known to anyone who is familiar with Wall street geography, is that Maiden Lane runs along the North side of the FRBNY. I also noticed that Maiden Lane is where they put the trash out. I couldn't help but see the euphemism in how ML 1, 2, and 3 were named.
Its all debt.
Before 2008 everyone played the game made money never noticing the virtual ponzi had reached the moon.
And what are the odds that both addresses Liberty and Maiden Lane are assigned the number 33?
http://wikimapia.org/1319791/2-Federal-Reserve-Plaza-33-Maiden-Lane
Hmmm...what is so special about the number 33?...Or the number 11 for that matter?
http://www.theforbiddenknowledge.com/wtc/index02.htm
The Illuminati ended the First World War according to Albert Pike's occult plan to produce Antichrist. They deliberately ended it on the 11th hour, on the 11th day, on the 11th month. (11 x 3 = 33) The signing of the Armistice agreement was undergirded by three eleven's!"
(Assume only 20% of the above numerolgical analysis has merit...still, seemingly absurdly improbable)
Well, accordingly, tomorrow is a special day for some very special freaks (11th hour of the 11th day of the 11th month...and all that).
[I do not intend nor suggest disrespect for the valiant dead that gave their lives for our freedom but merely suggest we look to the potential, albeit shadowy possibility, that the ghouls responsible for such momentous acts of destruction seek a stealthy glee when all other sane and caring people recognize loss and sacrifice.]
What was it Hoover said?
" The individual is handicapped by coming face-to-face with a conspiracy so monstrous he cannot believe it exists." --J. Edgar Hoover
http://www.rense.com/general38/mak_st.htm
So much death and disfigurement begets so much power and vitality to the truly deformed.
Lest we forget...we have their number...for future reference.
which year did Blythe tell us no one's getting screwed????
His head would look lovely on a pike, and I've got just the pike for it.
*First name Albert?
Revisionist is far too polite a term for his more than feeble attempts to personally enshrine his legacy.
The man did great damage to this country and was , along with Bernanke, a debaser of our currency. Guess when put in light of the Coinage Act of 1792, wherein the penalty for such is death. one might be tempted to pucker up a bit, eh?.
I wonder what George Soros has to say about this. Soros is the final word on all things currency. He's awesome and so is his #2 guy!
soros is awesome? i hope this was sarcasm that just went over my head...
Alan Greenspan was the top propagandist for the fraudulent transactional casino economy. The top intellectual fraud of the post WWII kleptocrat movement.
Hey, Andrea. Do us a favor won't you and lock the door from the outside.
Didn't Hitler accuse the German people of losing the war ?
That was the first thing I thought when I saw the headline.
There once was a Fed Chair named "Greenie",
Admittedly, sort of a weenie.
He liked to blame Ben, as he sat in his den
Watching re-runs of "I Dream of Genie".
There once was a Fed Chair named "Greenie",
Admittedly, sort of a weenie.
He liked to blame Ben, as he sat in his den
As Andrea danced in a bikini.
There once was a Chair named Green
Who never met a rate too low or too leen
But when the economy stated to waddle
He conceded a "flaw in his model"
but the effects were more than obscene
Well done
Reading these was quite fun
Wow he really is going to try to build a legacy as the maestro and now talk about the things that of course he saw and ignored as chairman. What a snake and self promoter.
Through most of his tenure I imagined his scrawny legs kicking spasmodically as he hung.
I thought you were going to say "spasmodically as he thrust deeply into Andrea."
THANK YOU CAPTAIN OBVIOUS!!!!
Wow it's not like he didn't put Bernanke in a box to begin with. I'm sure Ben loved hearing is old mentor throw him under the bus.
Let's cut Al some slack on the hypocrisy. If he's speaking out against Ben's insanity, he gets a temporary reprieve in my book.
Rethink that.
If Alan was for QE1 and against QE2, then there's a difference in who it serves.
Alans constituency and benefactors didn't change in one year.
Alan is exponentially worse than Ben. NOT even close.
Go back and see him turn the Fed's inside factions against Volcker. He's been upending the constitution for DECADES.
Ben's a guy with two choices. Greenspan was the decades architect behind the downfall of the Declaration of Independence.
They're not even in the same league.
Currency wars for Dummies
http://www.scribd.com/doc/41618610/Currency-Wars-for-Dummies
Once upon a time, three monks were walking back from a teaching lesson with their Master. When one of these unenlightened noticed a flag on a post, fluttering with the wind, the first initiated one said: "I see a flag flapping". Not to be outdone another of the "initiated ones" looked up and said: "No, I see the wind flapping!" Their master, the only one who knew the secrets of this world, said: "No, I see mouths flapping"....
He speaks about inflation in cotton ect ...
Ben is worried about deflation in the shadow banking industry in regards to housing/stocks/rmbs/siv's ...
But yes ben is launching Q.E. 2 as a shot at china.
Hint: it's both
I know. It keeps the packaging industry busy with all the new sizes to hide the inflation.Same price product size not so much ...
I just started to read the link and one of the first things was the post about all the inflation already so ben is nuts to worry about deflation. ... But the deflation in the big assets is a much bigger issue for uncle ben then tshirt cost ect he cant have housing falling, stocks falling, then everyone stops spending also. People are not spending a bunch but some business is starting to pick up. I would say things are better now than 14 months ago. They will continue to prop things up no matter what.
Hehe..yeah good for packaging...long Temple-Inland :-)
But I see the situation as much grimmer. Take a look at Dean Food's earnings report from yesterday, which was also discussed on CNBS: rising cost inputs and limited ability to pass on costs eroding margins big time. That's the theme going forward and it was confirmed this quarter by companies in lots of different industries: Proctor Gamble, US steel, Massey Energy, Pfizer, Macy's, Walmart etc...and it's starting to hit tech too.
The prob is the more the Fed "does its thing", the more of the same we're gonna have, only worse. It's feeding the fire, not putting it out. So as fast as they can print, they're only going to get diminishing returns and more biflation
Vale is still trading at 33ish. I think ore has not gone crazy yet. The steel overseas is crap big time eastern europe,china. So I think with the dollar dropping US Steel is golden many will look to purchase good steel. The manufacturing industry in Illinois has picked up 40% in the last 4 weeks( my bud says this per his vendors/contacts) CAT is on fire, the auto industry picked up a bit. US Steel had a bad report a few weeks ago the stock bottomed at 41ish. It been at 70$ within the last 12 months. Going forward they will show a pickup in demand .... The stock is at 47, I think we will see 70 again around the 1st quarter of next year. JMHO .... :-)
Q.E. 2 was for global trade bitch slap.
I luv their inability to "pass on costs". The big and scaled out could crash down. We need to destroy these distribution rackets. In my grocer, there's a local superior product to Deans dairy with a longer expiration date but, but the packaging isn't as slick and the location on the shelf isn't eye level, like Deans.
Let the slick, scaled distributors fall.
Yeh check out potato chips for crying out loud.
The Master said: "Mind is moving" but yours works too!
Mumonkan, Case #29, Eno's (Hui-neng's) flag.
Take solace in the fact that the chief currency debaser, unlike in Argentina, didn't get his wife elected the President of the country.
We are fortunate that only his adopted philosophical son de guerre took over the Fed.
Andrea Mitchell could be the President. And you think O is bad.
Your scenario
Ben: Timmy, take off your pants and underwear
Tim: Oh Ben, do I have too?
Ben: Yes Tim, I please at the pleasure of the president.
Tim: Then why am I taking off my clothes?
Ben: We have plans, your getting your happy ending.
Tim: OK Ben, be careful with your beard. I don't want a rash.
Skin crawling.....My Eeeeyes...Ohhhhh I feel soooo dirty - More Brillo pads!!!! Must scrape dirt off of me....(LOL-->Please let us know before you publish the screenplay as I will need additional Haldol from my psychiatrist!) -
Some Thorazine for my friend, willien1derland, nurse -- stat!
Greenspan was not alone. He was the numbskull put up front, spoke jibberish and everyone bought it while Rubin made a deal with Citi for $100m payday...... all of it under Clinton.
The Committee to Save the World
Rubin, Greenspan & Summershttp://www.time.com/time/covers/0,16641,19990215,00.html
++
Don't forget the repeal of Glass Steagall in 1999 signed into law by Bill Clinton.....
The Gramm–Leach–Bliley Act (GLB), also known as the Financial Services Modernization Act of 1999, (Pub.L. 106-102, 113 Stat. 1338, enacted November 12, 1999) is an act of the 106th United States Congress (1999–2001). It was signed into law by President Bill Clinton and it repealed part of the Glass-Steagall Act of 1933, opening up the market among banking companies, securities companies and insurance companies.....
They did this so thieves could steal with impunity and not worry about government safeguards and regulations and then they wrapped it all in free market type platitudes
http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act
And look at those nice "conservative" Republican names on it, my my.
Then we also see that Wendy Gramm was on the Board of Directors at Enron. Isn't that special? If you look at those people you will notice some of them, were never talked about much and most of them never got in any trouble about this, even though the big thievery was not done by the guys that did get in trouble about it since they were just the convenient fall guys.
http://www.apfn.org/enron/gramm.htm
GREENSPAN IS THE MOST POWERFUL MAN OF THE CENTURY
Greenspan was doing things for the transactional (nonproductive) rich that other moron Republicans could only dream of. Greenspan is the most powerful "Republican" of the CENTURY, no doubt. Reagan was his right hand man, later, Clinton too but neither knew the details except rich bankers loved them in return. More shame on Clinton, actually, because it didn't fit his "philosophy". Some blame for Reagan, because it didn't further his claim of fairness of real American productivity.
Greenspan was working the backrooms and the one-vote victories inside the FRB. He purged Volcker. Then, Obama purged him later again! Greenspan built the whole economic coalition before Reagan won a primary. He locked in his work under Clinton. He saw the BIG FAT RESULTS under Bush. The men he served had never gotten richer than under Bush. The country was so out of whack at that point, there was no way to survive the fallout. Greenspan left the scene before the wave hit, but he saw that wave before he left. He went to work with a hedge fund manager who would make TWO of the greatest transaction trades in history, shorting Greenspans empire and buying gold. Greenspan was on his payroll when he made both trades.
This man is a soulless liar. His lie is aways the same. This is a man who wrote a clean bill of health for Keatings banks when they were clearly dirty, insolvent banks. What did Greenspan do when Keating was caught and Greenspan lost credibility? He acted surprised that bad and greedy men existed who would break laws. That was his answer in the 90's. Surprise. That was foreshaddowing for 2008. He said the same thing. He didn't anticipate that people would use fraud to get rich. This is a man who lived around frauds and read about frauds his whole life, most were in banking. His expression of surprise in 2010 was a lie by a con artist. A man who believes the elite he leads have the right to lie, because productive people, not even Bill Gates can trump those who control currency. It's a religion to them. They are immune, chosen, and allowed to lie. They are allowed to be traitors to their country is currency control. He believes he leads the world. The United States is a tool to get him there. Currency control is his religion. The U.S. is secondary. The cries recently in financial news about "independence" is basically accusing Fed members of being patriotic. They are not allowed to be so. Read between the lines. Greenspan was the least patriotic central bankers of them all. He served international capital at great expense to the United States. I doubt the man has ever talked about American presidents, patriots or our Founders with any fondness. Try to find it.
Greenspan and his ilk destroyed the country, no doubt in my mind. He gave parasite-transactional capitalism the gravity of "American Values". These values pervaded sitcoms and movies. They glorified scale and power and pilloried anti-trust, Teddy Roosevelt AND Franklin.
He upended Jefferson, Jackson, Lincoln, Teddy and Franklin. Look at him, Alan Greenspan. Does that man look like the SOUL of America? He lacks soul and values, a true sociopath. His article discusses global trade and productivity as if they are ends to be sought without any value judgments therein. He would have been a great spokesman for a Pharaoh who was productive and kept the trains running on time. The only way we recoup our soul is by banishing and punishing the criminals. But - the media will not teach people who or how this happened with any sweep. Any history of 2008 starts in 2007 and ends with mortgages. Hardly the cause.
First we got "free trade" in 1994 with the North American Free Trade Agreement.
http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
Then the Chinese got most favored nation status in 1996
http://www.fas.org/man/crs/92-094.htm
All of this was done when the Republicans were in control of the House.
Ross Perot said the North American Free Trade Agreement created a giant sucking sound at the border for American jobs. It did.
http://en.wikipedia.org/wiki/Giant_sucking_sound
International capitalist do not care about nations nor indigenous peoples of these nations. They only care about profits and they go wherever the profits are the best. Now that we have stripped away all of our national protections, we are in the "free trade" zone now. Free trade is just another term used to denoted slave labor and exports of junk back to the host country, to wit, Chinese junk flowing back to the United States.
Well done with MFN. I almost forgot. That was a big annual issue to keep importing retailers and Chinese donating mega cash to Republican politicians. (and people though that started with the Clintons, ha.) That's why they impeached a blowjob over the foreign political contributions. They ALL got the contributions, but only one prez got a blowjob and lied about it! There was no prez with a better relationship to China than Bush I. He was also president during the crackdown/murders in the square. Hardly a word from Bush. That was when the industrialists were really cranking up their investments in China. It was all hot, political money. Deng knew he had plenty of cover for the tanks rolling in. He had Bush money surrounding him employing Chinese!
Don't expect Greenspan and other bankers to attack China or the currency issue too hard if at all. After all, that pegged currency is getting a lot of top .025% of Americans very rich. There's a machine of Americans who want it pegged. Bush II hardly said a word about it in his 8 years.... I would guess there's billions of Bush family money into Chinese manufacturing and importing.
Why should this surprise anyone? This man is a sociopath. He lacks the cognitive mechanisms that would bring another man shame or guilt.
He is no different than Ted Bundy, he just has different hobbies. Add to this that he is a senile imbecile.
The House that Allan Built was a house of cards: a patchwork of makeshift maneuvers aimed at preventing inflation despite a fiat currency world gone wild.
Enter the wind.
Soooo...everybody act right so we can do this. WTF
If this revisionist trend keeps up, it will only be a few months before Greenspan revisits his pre-Fed article, Gold and Economic Freedom in which he warned:
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
link: http://www.usagold.com/gildedopinion/greenspan.html
lol, "At the end of the day, does all the Fed do, aside from bubbles of course, is just create insane, cannibalistic, and completely revisionist, apparatchiks?"--the quotable of the day, imho...:)
After being "the most powerful man in the world's most powerful CB in the world's most "powerful" country...", really, where and what else is there to do for a follow-up?
What to do, what to do....
Write book...check...
Speaking tour $$$...check...
Write new book, contradicting previous book and speeches...check...
Engage new speaking tour and media appearances, contradicting previous book and speeches...check...
Study "outside the box" intellectuals, e.g., Dr. H. Lecter, revise deeds and accomplishments to fit new data....
Repeat until one's death, incarceration, or committal...
It was surreal to read Greenspan's comments in the FT today...almost like an out of body experience....almost felt like a hallucination set in type before my eyes...
Exactly, that's a normal reaction. Question is why wouldn't he feel some reservations about writing those comments? It's because what I wrote above - he's a (barely) functioning luney.
I have this same argument with my husband. He gets pissed off when I take all his Percodan. What does he expect? he's the one supplying the stuff.
The most pernicious aspect of Greenspan and Bernanke is their obliviousness.
They both are sure that their little system will kick in and everything will be alright if we just give it more time. Like a trader trapped in a bad trade swearing to get out if only he could get back to even.
They refuse to see that this is not a cyclical downturn, a temporary rut between bouts of normalcy, but a sequential cascading downtrend, a giant deflation with a negative vector.
I'm not so forgiving as some of you guys who say they just can't read the writing on the wall. I say they can but stubbornly refuse to react because it would mean admitting that Friedman wasn't God. And that would put them out of business.
Yep. They're protecting their life purpose, egos and esteem. Neither of these men ever had a job that produced anything in real terms. Their benefactors and constituents, the same. A bunch of parasites that feed off of other people's productivity. They NEED transactions of others to survive. "Other people's money", quite literally, and other people's production keeps them in business.
That's why they made the MOST money for their banking benefactors thru free and increasing trade and transaction. It's no surprise the ONE positive thing Greenspan noted in his article is no tariff and trade war, YET. Bankers get killed in that scenario. He celebrated that fact with glee. That's the core of their great wealth in the last two decades. It's the core reason the U.S. is hollowed out.
Now, now, you have to admit that the bubbleklatura of the disintegrating US Empire have achieved one unique feat which not even the Soviet nomenklatura could duplicate.
Made the Soviet nomenklatura look reasonably competent.
lol bubbleklatura! Love it.
Say what? Are you calling Greenspan a Commie?
He is, in the sense that bankers are the Politburo. Ben is further embracing a command economy. Greenspan knew he was creating that which wouldn't happen without him from 87 thru 07. They're Soviets but they're distributing the assets the other way. Same system, different flow.
Sounds vaguely menstrual.
right. Imagine menstruating liquid dollars. Greenspan/banks = the tampon. They want to absorb your dollars before they pass out the door.
I was screaming bloody murder for two years while AG inverted the yield curve so "you go ahead and call it the Greenspan put!" I don't recall him being there "buying at the low" in 2008 because "he was gone by then"! Needless to say "those banks had to be bailed out for a reason" and I think "believing there was such a thing as a Greenspan put was one of them." Now "insofar as the Fed has decided savers are evil" ever since THEN you can complain...but you can't have it both ways. Either you hate the banks, glad they're dead and love the inflation that comes with it...or you love the banks, were glad they got bailed out and start hoping they "deconstruct the Federal Government" thus providing some form of price stability instead. Needless to say "I'm in camp latter."
They are gunna grind the dollar and make it hard for people to buy stuff to eat. That means that people will be right where they want them.
People will be so hungry they will be craving for the new world order.... not good.
This vid is a perfect representation of what is going to happen in the coming 9 months. The guy has been spot on....
http://www.youtube.com/watch?v=Za-9cqeIzEw
(Reuters) - Germany's undiplomatic outbursts against U.S. policy, calling it "clueless" before a G20 summit, show growing estrangement on economics as America's focus shifts away from transatlantic ties to domestic challenges and Asia.
http://www.reuters.com/article/idUSTRE6A920R20101110?loomia_ow=t0:s0:a49...
George Soros, the Hungarian Humanitarian, will get us out of this.
Glenn Beck said that he was trying to get Beck fired at Fox etc. It is all good comedy drama if you ask me. Beck is just trying to prove to the doubters that he is legit, which is he is not of course. Beck claims that Soros got Juan Williams fired at PBS, etc.
Just remember who you are, we shall be the kings......
ha ha ha
"THE KING IS DEAD!" .... "LONG LIVE THE KING!"
If Ayn Rand was serious, she would have had Greenspan killed early on.
It's the trade gap stupid...
China is simply not ready to be where they are and I think that in the end they will have grossly misplayed their advantage.
QE2 : if it doesn't work to drive China to float RMB by inflating them to the brink of disaster, it can simply be retracted (the Dollar Bills underneath are a fiction at any rate). Cheap Jedi mind tricks ...
If the Germans are angry, well ... they are Germans after all and of course, talking their book.
It's not just the Germans and Chinese, it's India, Russia and South America.
We're able to keep the CORE MILITARY/CORPORATE alliance so far and that's it: US-Britain-Japan.
The petrodollar alliance with Britain kept them out of the EU and brought them into Iraq.
Oil has defined the Brits relationship with the UE/US.
The blood of the machine ...
Didn't he say that the US has a 33% of entering a recession in 2008 in December 2007?
As the temperature drops, the need for heating oil goes up.
Christopher Dodd
No more maestrobation please.
STFU, Magoo.
Greenspan also said fraud was acceptable back in 1998.... 3 months before the $1 Trillion LTCM meltdown.
I still hold up his brilliant 1966 essay, "Gold and Economic Freedom" to young people, and then point to the Maestro now, as proof that reason and accountability are the first mental faculties to go.
Shades of Jack Nicholson!
Greenspan was sure to have post-graduate textbooks filled with his ideas that FRAUD need not be prosecuted. This was AFTER the S&L crisis was precipitated by FRAUD, a FRAUD he was deeply involved with, yet pretended he was surprised that his clients went to jail.
His "fraud shouldn't be prosecuted" thing came up a decade later with Born.
That shows you the character of this man. He thinks his people, bankers, those who control the currency are chosen, elite people immune from the laws of a nation. He saw himself as a King and he destroyed anyone who challenged it. He destroyed Born.
I think there's enough evidence to indict Greenspan for high crimes against the United States.
Long story short. Greenspan is saying that "China isn't playing ball and if we can't get them to then we're going to blackmail the rest of the world into sorting China out for us".
Simple really. Greenspan believes that the USA has the moral high ground. Hard to say if he's right or not.
Today somebody in Montreal shot dead the 86 year old head of the Mafia. Just saying.
Revenge served up cold perhaps?
No one will mourn this man's passing.
How has anyone ever taken anything he has said seriously? Seriously.....
How can we? First off, a lot of times you can sit there and listen to what he says and you can't figure out what he just said.
Matt Taibbi has a whole chapter on the douche in his new book Grifters... ties in the whole Ayn Rand brainwashing
Rand brainwashing. Yep. Kind of like Ron Paul too huh? He likes her so much he named his son after her, the same guy who got elected in Kentucky and is now backing out of his campaign promises. Tea party my ass.
that was creeping into my psyche as well.... here's his take http://www.youtube.com/watch?v=oD-R_OeP6tU
shame about Ron.. twists the BS to seem like liberty, et all just liberty of the sociopath ego
here is the vampire herself... http://www.youtube.com/watch?v=s1RxKW-P5V8&NR=1
Alan's an old man, maybe he feels it time to start coming clean. It happens to powerful people from time to time. They feel the need to tell a truth about something because in their twilight days they know they've done wrong and they want, in the end, to do right. Look at Paul Craig Roberts. Look at Castro. Goering even.
Some of these people fall under trains, others get child porn accusations. Greenspan's old enough to just die in his sleep and time's awasting. Alan, spill the beans man.
By MOSI SECRETWhile fleeing the Nazis in 1941, an 11-year-old girl dodged airplane bombs as she crossed the Dnieper River in Ukraine, ultimately finding refuge in Donetsk, where she and her mother lived in hiding until the liberation of 1944.
A 13-year-old boy escaped from Kiev with his mother and younger sister, shuttling from basements to barns and sometimes the forest, where they often stayed for weeks.
These tales were among thousands of similar accounts given in the name of elderly immigrants who were seeking reparations from the German government through a fund established to provide help to survivors of Nazi persecution.
But many of the stories were works of fiction or embellishment of facts, perpetrated by a group that included six employees and custodians of the fund, which is based in New York, federal prosecutors said on Tuesday. Eleven other defendants were outsiders who recruited and funneled applicants to the programs.
Over 16 years, the suspects used fake identification documents, doctored government records and a knowledge of Holocaust history to defraud the fund of more than $42 million, according to an indictment unsealed Tuesday by the United States attorney in Manhattan, Preet Bharara.
The defendants, the indictment says, would recruit applicants — many of them from Brighton Beach, Brooklyn — through Russian-language newspapers, offering help to people applying for compensation from the Conference on Jewish Material Claims Against Germany. In many cases, the immigrants’ actual experiences would be manipulated or tailored to fit the requirements of the fund; once the payments were approved, the defendants would receive kickbacks from the applicants, according to the indictment.
Birth dates were changed so people would appear to have been alive during World War II; anecdotes about surviving inhumane conditions in a Nazi-occupied territory were repeated in multiple applications; photos of certain applicants were reused on dozens of unrelated applications.
The conspiracy was directed at two programs run by the claims conference. The conference was established in 1951 to compensate Jewish victims of Nazi persecution; the German government appropriated money for the conference the following year, and has been financing it since.
One of the programs, known as the Hardship Fund, pays reparations to Jews who became refugees when they fled the Nazis; the majority of payments from the Hardship Fund went to people from the former Soviet Bloc countries who were not under direct Nazi occupation, but who fled to escape the Nazi advance, according to the indictment. The fund pays a one-time payment of approximately $3,600.
The second program, called the Article 2 Fund, compensates survivors who lived in hiding, under a false identity, in a Jewish ghetto, or who were incarcerated in a labor or a concentration camp. This program provides monthly payments of approximately $411 to survivors who make less than $16,000 per year.
“The alleged fraud is as substantial as it is galling,” Mr. Bharara said at a news conference announcing the indictment. The charges followed a yearlong investigation by the Federal Bureau of Investigation. F.B.I. agents arrested 11 of the defendants Tuesday morning; 5 were previously charged.
The suspects are each accused of playing a role in creating, filing and processing fraudulent claims on behalf of applicants who should not have qualified for compensation. Semen Domnitser, who was the director of the Hardship and Article 2 Funds until he was fired on Feb. 3, was accused of being the leader. At the fund, his responsibilities included reviewing all applications for approval before they were sent to Germany.
The claims conference became suspicious when employees noticed two applications that came in within two weeks that had remarkably similar facts, said Gregory Schneider, the executive vice president of the organization. They began to look for patterns and, after finding other problems, alerted the F.B.I. in December 2009.
To date, investigators have found nearly 5,000 false applications from 2000 through 2009 to the Hardship Fund, resulting in a loss of about $18 million. They have found 658 fraudulent applications to the second fund, from 1993 to 2009, with losses of about $24.5 million.
Mr. Schneider said the theft amounted to less than 1 percent of the claims filed since the two programs’ inception. He said his organization had processed 630,000 applications for the two programs over the last two decades. He said he suspected that the nearly 6,000 people involved in the false claims were a mix of those who were aware they were committing fraud and those who may have been used.
When Mr. Bharara was asked whether the thousands of others involved in the fraud could be charged, he said, “the investigation remains open.”
In the example of the 11-year-old girl who crossed the Dnieper River, her application included a government document from the Soviet Union where the dates and location of her primary schooling had been changed to make it appear that she was in hiding then. The document also falsely omitted the existence of a brother and said that her mother had died, so operators of the program could not check her claims.
The man who submitted paperwork detailing his suffering as a 13-year-old used forged government documents to show he went to primary school in Kiev, when in fact he studied in Leningrad, which was never occupied.
Although the fund’s offices are in Midtown, much of the criminal activity was in Brighton Beach, known as Little Odessa because of the community’s large number of Ukrainian immigrants.
Dora Grande, who runs a business near Brighton 12th Street, created false identification documents that were submitted in many of the fraudulent applications, according to the indictment. Valentina Romashova, who lived in Brighton Beach, worked at a law firm that placed advertisements in Russian-language newspapers.
----------------------------------------------------
Just curious: did Alan Greenspan receive any compensation as a Holocaust victim? Did he also survive a gas-chamber?
Well, so much about the Holocaust and its victims!
Eliot Spitzer was working on this before he resigned. So can we perhaps elaborate that maybe, just maybe, that someone dropped a dime on him about this prostitute situation in order to get rid of him? If this thing was eminating from Brighton Beach, i can assure you this is the Russian jewish mob in action on one of their many scams. Why do you think Madoff took the fall and now sits rotting in Federal Prison? If he ever thought about singing, he would be found in his cell, dead by some means. So would his wife and his boys. The Russian jewish mafia have no code about killing as the Italians do.
Sorry Greenspin,
You lost me at.... "we don't perceive that there is a national bubble, just a little froth"
EURO daily chart bearish warnings continue.
US Dollar daily chart bullish warnings continue.
http://stockmarket618.wordpress.com
Earth to Guantanamo:
Prepare 4 cells for new inmates: Rubin, Greenspan, Paulson, Bernanke
It makes one wonder whether the premise of "Being There" isn't true? Not necessarily parallel since Greenspan appears to be a sociopath as opposed to Chance Gardener's idiot savant.
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