Bush, Greenspan To Blame For U.S. Crisis: Nobel Economist Stiglitz

Bush, Greenspan To Blame For U.S. Crisis: Nobel Economist Stiglitz

www.rawstory.com

VIENNA (Reuters) - Former Federal Reserve Chairman Alan Greenspan and the government of President George W. Bush were to blame for the U.S. financial crisis, Nobel laureate economist Joseph Stiglitz said in a magazine interview.

"This man (Greenspan) has unfortunately made a lot of mistakes," said former World Bank chief economist Stiglitz, according to a preview of the interview to be published on Monday in profil magazine.

"His first one was to support all the tax cuts which were introduced under Bush -- they didn't stimulate the economy very much ... This task was then transferred more towards monetary policy, though then (Greenspan) created a flood of credits with low interest rates," Stiglitz was quoted as saying.

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LOL, I wonder which Bush defenders are going to holler "this guy doesn't know what he's talking about." He's only a nobel prize winning economist. Now if only the idiots in congress would stop going along with his disastrous fiscal irresponsibilities....

Stiglitz said Bush's government was also to blame.

"I reproach them, that the economy was not as resilient as it could have been due to the ongoing tax cuts and the huge costs incurred by the war in Iraq," he was quoted as saying.

He said it was a myth that Europe could decouple itself from the United States.

"Especially the weak dollar will continue to hit the European economy hard, because it will make it much harder to export," he said.

www.rawstory.com
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[edit on 27-4-2008 by DimensionalDetective]

reply to post by DimensionalDetective

I see what you mean. Alan Greenspan seems to be a cunning shill for the New World Order, as is George W. Bush, Ben Bernanke, and other wealthy Zionists, who hate Americans, in general.
Patriot Radio News Hour - Tuesday, February 26, 2008 PT 3

www.allamericangold.com...
Drop dollar peg, ex-Fed chair tells Arabs.

Former Federal Reserve chairman Alan Greenspan said on Monday near-record Gulf Arab inflation would fall "significantly" if oil producers dropped their dollar pegs, in contradiction to Saudi policy. The pegs restrict the Gulf's ability to fight inflation by forcing them to shadow U.S. monetary policy at a time when the Fed is cutting rates to ward off recession and gulf economies are surging on a near fivefold jump in oil prices since 2002. Rifts are growing across the world's top oil-exporting region on how to tackle inflation which hit a 27-year peak of seven per cent in Saudi Arabia in January and a 19-year peak of 9.3 per cent in the United Arab Emirates in 2006, the most recent figure.

Greenspan tells Gulf to drop dollar (english.aljazeera.net...)

Alan Greenspan, the former chairman of the US central bank, or Fed, has said that inflation rates in Gulf states, which are reaching near record levels, would fall "significantly" if oil producers dropped their US dollar pegs.

Traitor Greenspan Urges Gulf States To Abandon Dollar (www.prisonplanet.com...)

Alan Greenspan has again exposed himself as a traitor working against the interests of the American people by urging Gulf states to abandon the dollar peg, a move that could result in financial chaos and an economic depression in America.

The dollar peg mandates Gulf nations to price their assets in U.S. dollars and follow U.S. monetary policy at a time when the Fed is cutting interest rates, a system that has produced a boom in oil revenues but led to high inflation as the dollar weakens.

"It [de-pegging] is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures," Greenspan told the Abu Dhabi Corporate Leadership Forum yesterday.

"In the short term free floating ... will not fully dissipate inflationary pressure, although it would significantly do so," added Greenspan, giving a green light for Gulf states to drop the dollar peg.

According to Economist editor Pam Woodall, Greenspan's comments heralded the beginning of the end for the US dollar as the currency of choice for foreign exchange reserves.

"If Asian central banks hold today more than 80 per cent of the global foreign exchange reserves, which indicates the shift of the global economy domination towards Asia, it seems quite awkward that the UAE still maintains the peg of its currency to the US dollar," she told Gulf News.

Greenspan's zeal to destroy the dollar is evident in numerous public statements he has made predicting the replacement of the dollar with the Euro as the world reserve currency.

[edit on 27-4-2008 by ChadAndrewATS]

reply to post by DimensionalDetective


Bush and Greenspan are not the ones to blame for the Crisis at hand. FDR is for helping to create the Federal Reserve, taking us off the gold standard and placing us on the fiat system, and for prolonging the problem of the Great Depression for the future generations.

Of course Greenspan is a traitor..
If you say or do anything which is in oppositing to the current regimes decisions your deemed a traitor.

....he's got to be the biggest.

He doesnt support the War.
He doesnt support the Economic packages

And yes, oil rich nations dumping the dollar with ruin the United States, but it will save the world.

And its quite obvious the USA needs to be ruined and rebuilt because the leverage of corporate power has gotten so out of hand its affecting the entire world.

Its really time to start listening to the ones the US Government doesnt like, because they are the ones who speak the truth!

Originally posted by DJMessiah
reply to post by DimensionalDetective

 

Bush and Greenspan are not the ones to blame for the Crisis at hand. FDR is for helping to create the Federal Reserve, taking us off the gold standard and placing us on the fiat system, and for prolonging the problem of the Great Depression for the future generations.

First, the Federal Reserve was created before FDR, the gold standard wasn't removed until way after FDR and Milton Friedman and every other respectable economist attributed the gold standard for prolonging the Great Depression (which was a deflationary spiral [meaning money was too tight]). Every nation that removed the gold standard during the Great Depression either came out of it early or didn't go through it at all. I agree with hard money, but not hard money that undermines everyone's assets and investments. Cutting rates now is a bad idea, but there are economic circumstances when it is justified.

FDR did however created the social security system which doesn't work at all...

Anyhow, it took a Nobel Economist to figure this out? It was more of Greenspans fault than it is Bush's fault. Though the Bush Administration played a huge part by driving up the national debt to an insane and unstable amount. When you sell T-Notes you literally expand the money supply, if you mount that with 1% Fed Fund target rates you get so much liquidity that the market can't soak it up...then you start taking it away and the credit and pools of liquid that were there are there no more...that's why the Fed keeps cutting rates. The dollar kept falling during the Fed rate hikes because of the national debt...take a history class and an economics class.

[edit on 27-4-2008 by yellowcard]

It was Nixon who took us off the Gold Standard.

I would also not state that Social Security doesn't work, rather it has never been allowed to work (because it isolates that portion of the wealth from those who would have it all. we can't have that.) Saying Social Security doesn't work is like saying that having a savings account doesn't work.

Greenspan, Bernake, Bush are all tools, none of them understand, nor do they seek to understand, how to manage the wealth of the United States for the benefit of its citizens. Their focus is on stimulating the business model they worship. Their actions are geared towards supporting corporate enterprise, not national strength. Bush, is more to blame, as he has a specific mandate to protect our national interest. Congress is to blame as they keep renewing the Fed's charter, without so much as a single comprehensive audit. The Fed's not to blame at all - what we are seeing is precisely what it is compelled to do. Its subservience to the International Monetary Fund, the World Bank, and the Bank of International Settlement are evidenced by the direction of the cash flow - out of the US.

Our stupid American corporate leaders usurped the political system and government on the premise that they could out-think the big boys. Wrong. It's just a game to them, it's not like THEY are going to lose their houses, or see their wealth diminish significantly.