Sentry over America: Issue 20 Page 4

Corrupt Leaders

Legacy Stains Are Indelible, Mr. Greenspan

Even Bill Clinton Can't Scrub Them Clean

In the weeks following the World Trade Center attack, the Clinton regime's record came under intense criticism for its total abandonment of any effort to counter terrorist attacks on the United States. Bill Clinton assembled a group at his Harlem hangout and went into his all too familiar defense mode. In what came to be known as the Clinton Scandal Team Revival, Bill Lindsey, Cheryl Mills, Maggie Williams, Clinton, and other notable dishonorables tried in vain to rewrite the "Clinton Legacy" in the face of this mounting criticism.

Being that Clinton's only true legacy was a stain on a blue dress and Chinese reentry targeting technology, the Scandal Team's efforts were doomed from the start.

In a strikingly similar charade, in the fine tradition of crass Clintonian capers, Alan Greenspan last Friday attempted to rewrite history and change the fact that he alone was greatly responsible for sucking seven trillion dollars out of the pockets of common American citizens.

His locale of choice was Jackson Hole. It could just as easily have been any interstellar black hole to symbolize your chances of ever seeing your money again.

I caused the crash. I wanted to hurt George Bush. Bring back Bill Clinton! Greenspan's two-faced duplicity was quite apparent at Jackson Hole. In fighting off a claim that he did too little to slow the stock market boom in the late 90s, Greenspan said, "there was little the Fed could do to identify and fight emerging asset bubbles." He failed to explain why he then raised interest rates so dramatically even though a post Y2K slowdown was expected, there was no inflation, and he could not identify a bubble.

"It is by no means evident to us that we currently have—or will be able to find—a measure of equity premiums or related indicators that convincingly presage an emerging bubble."

Show me the 1913 document of the Fed's founding where it says that a goal of the Federal Reserve is to be the judge of the value of a maid cleaning service or a multinational conglomerate? At what point when demand exceeds supply does a "bubble" emerge? Concern about stock prices should not be a concern of the Federal Reserve—in a free society, that is. It was never stated in 1913 that the Fed should be a business valuator. Why is it that Greenspan can say there is irrational exuberance when stock prices are higher than where he thinks they should be, but he does not say we have irrational depression when Sun Microsystems is at three bucks a share?

Why the one-way street for the two-faced Fed Chairman?

"It was difficult to definitively identify a bubble until after the fact—that is, when its bursting confirmed its existence." Two-faced Alan had sung the praises of technology driven productivity and low inflation all through the big surge higher. "Bubbles" were not in the Fed glossary during this period.

Greenspan took control of the free market system even though he now says he did not know what he was controlling—no inflation, no known asset bubble. Only fools who believe we still have our founding freedoms believe we still have a free market system.

The two faces of Alan Greenspan symbolize America today. One face speaks to the clueless that watch CNBC and are brainwashed into believing Greenspan was a god. The other face has a tougher task as it talks to those of us with a solid background in economics or others who are just astute observers knowledgeable on what makes the economy and the markets tick. Over valued stocks would have come down in a free market at some point. Why should the Fed care at where the inflection point is on a stock chart? The free market—if left to be free—is self-correcting.

Greenspan flooded the financial markets with money fearing a pre-Y2K run on the banks, he raised rates in the face of a pending post-Y2K slowdown, he failed to reverse course and cut rates quick enough after the hard crash started in late 2000, and once he started cutting rates he did not do it in a sharp enough fashion in 2001 to reverse his initial damage.

Greenspan can try to scrub these four indelible stains, but even with the Clinton Scandal Team's help, that act is futile.

Greenspan failed in the Fed's primary goal of monetary policy and a stable long-term growth. No matter how much Alan wants to drone on with his nonsensical babble, even the clueless out there know the economy sank hard and fast.

The second goal of the Fed is to promote a safe, sound, competitive banking system and stable financial markets through supervision and regulation of the nation's banking and financial systems. Even soccer moms and loony liberal university professors can recognize that a seven trillion dollar market crash is not exactly a "stable financial market".

Greenspan failed in the Fed's second goal of a stable market as he orchestrated a stock market crash of historic proportions. A "stable market" is an idiotic goal for a free market system anyway. Communism has state control of the economy—there's your "stable market". No wonder that the respected Nobel Prize winning economist Milton Friedman stated that the Federal Reserve should be abolished.

As to the third goal of the Fed, I tip my hat to them as the settlement and payment system continues to operate smoothly.

Americans better wake up and smell the communism.

We know we have a classless society as a goal by the radical left. We know that we have a one-party system in action, a two-party system only in name. And finally, the third requirement for communism is state planning and control of the economy. The Fed intervenes and manipulates the financial markets no different than what a communist government would.

Just pause and contemplate this. In two years, seven trillion dollars was sucked out of your wealth and from those like you. This is greater than the current running total of all the socialistic debt accumulated by this government.

Legacy stains are indelible, Mr. Greenspan. Even Bill Clinton can't scrub them clean. Just like the Clinton Scandal Team discovered at its revival, Greenspan's efforts were doomed from the start.

Bill Clinton did a one-man demolition job on our criminal justice system.

Alan Greenspan demolished the wealth of so many Americans and, after his one-man demolition job on the free market system, has sent yet another relic into the sad memories of a once proud nation.

Issue 20 Page 1

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