Thanks for the remedial economy course Michael!! Man, I wasted all that money on Stanford!! You are forgetting one simple fact. For the first time in decades, we have a budget SURPLUS and not a budget DEFICIT. For the first time in decades, we have a chance, admittedly slim one, to pay down the debt. Yes the trade deficit has been growing but that is a price we have had to pay to help Asia and South America avoid total disaster. We are not alone in the Global economy anymore. We can not be isolationists anymore. Greenspan's easy money has been the catalyst that brought Brazil, Korea, Thailand, etc. back from the brink of disaster and gave Japan a glimmer of hope. In the long run that would help the American economy and the trade deficit not hurt it. As long as there is no threat of inflation(and I know you guys like to close your eyes to this fact, but believe me there is not. Just look at the CRB index. Just look at gold) Greenspan's easy monetary policy will help expand the economy with the occasional soft landings thrown in. That is what happened in march of 1997 and that is what will happen in July/August of 1999. Meanwhile the economic expansion and reasonable GDP growth will continue. I know you guys don't like to hear that and I know you have predicted the opposite since 1994. But facts speak for themselves. Greenspan's record speaks for itself. How many years has it been since people in your school of thought have screamed 'Yeah, things are good now , but just wait a couple of years'. Well what does the record say?? I guess we can discuss the results of today's policies some time in 2005!!
P.S., thank you for the grocery store economy lesson. I think it should be added to the curriculum of all major schools!! |
