Recently, I have taken exception to the attacks on Alan Greenspan and to the role he played for 18 years at the Federal Reserve.
Anyone who understands Alan’s bio and C.V. knows of his history with Ayn Rand, the Randian and objectivist movement and as a lifelong Goldbug. I have listened to his words very closely over decades and I see him as a hero, not a villain, in engineering the relatively final, quick demise of the global central-banking, fiat currency system. It should have come much sooner, however, one man can only be expected to do so much.
He strategically maneuvered himself over a period of years into precisely the position he needed to be in order to accelerate the collapse of the fake global financial system, the dollar and particularly the Federal Reserve.
His recent mea culpas align very well with tactics laid out in “Atlas Shrugged” when the political establishment attacks the producers in order to deflect attacks on themselves. Adopting the language of one’s opponents while working to defeat them is hardly a novel concept. All of their ongoing, insane legislation and bailout packages is an eerie, direct parallel to the same behavior portrayed in Atlas Shrugged as well. It was a foregone conclusion that would be their response, as they are uncompromising looters. It is the looters and their pronouncements and policies who will make recovery from their own financial excess drag on for years.
However, at least, it will not be decades as it would be if the system had gone one through one more gigantic bubble-expansion after this one. Greenspan pulled it forward by decades. Alan Greenspan followed by a Bernanke was a perfect set up (Seattle Times, Bernanke). Behind the scenes Greenspan recommended Bernanke. He obviously read his absolute bullshit Princeton papers, lectures and listened to his speeches in the 90s and early 2000s. He knew who “Helicopter Ben” was. The only dissenter to his (Bernanke’s) confirmation, Sen. Bunning of KY, “cited concerns that the nominee would be too much in the mold of Greenspan and not a sufficiently independent thinker.” Greenspan knew Bernanke would not only continue his policies but put them on steroids. The difference was Bernanke was a true believer.
The Federal Reserve has, since 1971, a systemic flaw built into it (debt money) and would inevitably fail; any student of Austrian economics or studious objectivist knew that. Its existence allows a small handful of people (the shareholders, co-opting politicians and inside players) reap enormous profit at the expense of the rest of the world before they would have more naturally collapsed it and moved on to the next scheme.
It likely could have gone on for another 20 or more years before it would have naturally reached its end in a managed inflationary/deflationary endgame. Instead, the swiftness of the demise has caught them all flat-footed and seeing their fortunes evaporate. The vapid responses of Bernanke and Paulson in not following the script (to protect the Fed as Volcker did, which they foolishly believe they are doing) will compound their losses and possibly completely dissipate their control before this is all over.
If he had told them the truth he would have been crucified then and there. Why should he sacrifice himself in such manner when he has done the rest of us a gigantic favor? Pleading he’s only human and makes mistakes makes it impossible for them to really crucify him. At the same time, he still managed to set the system up for complete failure as early as possible and much earlier than someone, who really believed in the system like Paul Volker, would have.
Volcker instilled confidence and extended the life of the dollar and the Fed when he jacked interest rates to all time highs to slow inflation in the early 80s. If Greenspan had had Volcker’s term, I think this would have been over much sooner with much less pain. It is interesting to note that he began seeking the seat shortly after Volcker and then never followed any of Volcker’s policies, which everyone thought were so successful. And they were–if you wished to prop up the system.
Greenspan will suffer some bad press for awhile but it will likely never be understood how he fully engineered the final demise of the Fed by giving the political establishment and powers that be (PTB) exactly what they wanted and what the Fed was designed to do until it blew up in their faces. There is no dishonor in misleading or even lying to looters. As HL Mencken observed about democracy, “Democracy is the theory that the common people know what they want, and deserve to get it good and hard,” so could be observed about fiat money. If they think they like fiat money, give it too them “good and hard,” and see how they like it.
If allowed to go on for another one or two decades, the final financial devastation and implosion wrought by the slow, incremental devastation of a “functioning” Federal Reserve would likely have sent us into a decades- or century-long “Dark Age.” That would have allowed the next step of fully enslaving mankind for their bidding. Exposing the evil of the Fed today is already much later than it should have happened to avoid more damage, and it will still be substantial as the Fed will most certainly continue to inject huge amounts of “liquidity” into the system.
However, the damage down the road would have been so enormous as to wreck the global financial system beyond all repair for a long, long time possibly leading back to an era of regional empires. By allowing the Federal Reserve to set-up a relatively quick demise during his term as Fed chairman, Alan forced a much earlier demise, out of their control, and costing them dearly in eventual power and control.
While, of course this is speculation on my part and, we will likely never know the complete truth as Alan keeps his own counsel very well. That behavior lines up very well with everything that formed Alan in his early life and writing. It makes much more logical sense given an understanding of the entire history of the man and the nature of such behaviors of the powerful.
There are clues that abound all over if one gets the “Greenspan Ear,” as I call it. If one listens to Greenspan long enough, it becomes easier to parse his language. Also, from time to time, he drops clues out there for others to follow. Listen carefully to this interview he gave to Jon Stewart of The Daily Show in 2007. Most of the time when he references in the third person, you can hear the clues through his Congressional testimony and speeches he’s given all over the place.
I hope to see Alan Greenspan someday proclaimed a hero to the Republic and to all free men everywhere for accelerating the destruction of the Federal Reserve in a way that very few could see coming, except a longtime Austrian, Objectivist and Goldbug. I’m surprised so many others have missed the obvious.