"Stop, Thief!" Cried the Burglar
Federal Reserve Board Chairman Alan Greenspan made a big speech at the Council of Foreign Relations today deploring the federal government's fiscal profligacy as representing the single largest threat to the economy's future. Bigger than trade deficits. Bigger than low savings rates.
So maybe that's why he recently called for making the 2001 tax cuts that largely created the fiscal mess permanent, along with additional measures to enable high-income Americans to shelter even more income from taxation through savings accounts.
Hate to sound like a broken record about this, but it still just blows my mind: four years ago, Greenspan endorsed the Bush tax cuts on grounds that the United States was in danger of prematurely retiring the national debt. And now he's endorsing new tax cuts as a way out of ever-rising national debt. Just like his buddies in the Bush administration, Greenspan has a single answer for every question and every circumstance, and that's why his credibility is collapsing like a grossly overvalued stock in a bear market. --