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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (109830)	11/7/2007 8:26:53 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

KT, You are going to have to stop blaming monetary policy on Bush. Stick to the facts and legitimate criticisms (there are more than enough legitimate ones). The circumstances we find ourselves in now actually started in 1987 when Greenspan took over the Fed. His successful bailout of the 87 crash with easy money encouraged him to think every bust could be handled the same way without economic repercussions. As a result we've had significant disincentives to save and huge incentives to borrow, speculate etc... every single time he bailed Wall St and the economy out after that (the LBO/banking ciris in the early 90s, the Asian crisis, the Nasdaq/telecom bubble, 9/11 and now etc..) Negative real interest rates have a tendency to kill a currency. His successor seems a little better but not much. Running deficits like Bush has done is certainly a very long term negative for a currency. But that type of shit won't really hit the fan for a long time. Expect that problem to occur around the time the unfunded bills for medicare, SS, and other semi-bankrupt social programs really start kicking in. Those programs and some of the more insane promises were made long before Bush came to office. They were made by assholes that don't understand money and economics, people that would sell their mother to get elected, and people that hate capitalism and want to destroy it through the back door. The deficits we have not are not even all that big as a % of GDP. If Bush was competent and thinking long term though, he would have allowed the shithole bubble economy he inherited from Clinton (and as a result of 9/11) to go down the toilet (we needed a deep recession) to allow the excesses to be purged. Running huge deficits to keep the economy afloat in the short term was a mistake. Continuing those deficits after it recovered was a much bigger one. But neither had much to do with the intrinsic value of the dollar during his 7 years (except perhaps to some traders, but who cares about them). Negative real rates have been the problem. That's the fault of the slime on Wall ST and the bought and paid for scumbags at the Fed.