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Greenspan testimony - Tragic for U.S.
by: northbeachfl2000 (60/M/Fl) 07/20/04 10:05 pm
Msg: 47705 of 47749
Like many of you, I watched Greenspan address the Senate today.
Two things really made me sit up and think. The first was the extended discussion regarding the size of our current trade deficit and its present exponential growth rate. The second was the size of our federal fiscal deficit, and the fact that fully 50% of all the treasury securites sold to finance it are now held by foreigners.
During this conversation, not one Senator asked one intelligent question about what we as a nation could do to reduce this 2 front problem (fiscal and trade deficits). Instead, the concern expressed was how much longer will foreigners be willing to finance these ever increasing deficits without demanding much higher interest rates in return. In short, our fearless leaders IMO were asking Greenspan how much longer the rest of the world was going to be willing to finance us before they decided to end the party and take our lollipops away.
To Greenspan's credit, I thought his answer was cogent and to the point. He made it very clear that at some point the rest of the world's central banks/governments wouldn't want any more dollar investments regardless of the interest rates being offered. As he pointed out, this was simply a matter of these countries wanting to maintain a prudent, diversified foreign exchange investment position. To my utter disbelief, the Senators response to this was muted at best.
But the part of his testimony that really undermined the integrity and conviction of his testimony IMO was when he went on and on about the NA natural gas problem and our need to build more LNG terminals so that we can import ever increasing amounts of NG to correct the supply/demand imbalance in NA NG. To hear him tell it, once we do that the problem is over.
Am I missing something here? If our trade and fiscal policies are out of control, and if we are facing the spectre of the rest of the world reaching the point where they are no longer going to be willing to finance our incompetent, irresponsible ways, then I've got a simple question for Mr. Greenspan - HOW IN THE HELL ARE WE GOING TO BE ABLE TO PAY FOR THIS IMPORTED LNG? Where is this money going to come from?
I'm absolutely disgusted. We are so out of control as a country, and yet we not only have no plan to correct this; but our so called leaders IMO are in a state of denial (i.e. "maybe if I stick my head in the sand long enough these problems will go away).
It's absolutely tragic. I feel so badly for my children and the problems they will have to deal with going forward that weren't of their own creation. How could we have screwed up so badly the greatest national franchise the world has ever seen in a mere 2 generations?
<How could we have screwed up so badly the greatest national franchise the world has ever seen in a mere 2 generations?>
Politics is 'verboten' here, but in light of others opineing, I had to throw in my 2c.
It's not the dem's or the rep's that have caused this mess, it's been the people; citizens with their hands out. We are in such a financial mess because of all the welfare, socialism and give aways.
The voters want freebies from the government. Give me food, housing, medicine, take care of me when I'm sick, when I'm out of work etc etc etc. Take care of me from the womb to the tomb.
Government was supposed to only manage things an individual couldn't do for himself and required the cooperation of the community; such as print money, make roads and traffic rules, provide for the common defense and that was it.
However, politicians get elected when they give things away for free. "We want X", the people say, "you got it" say the politician (if you vote for me!). Of course, he won't pay for it himself. So special programs are set up, beaurocrates are hired and taxes increased to pay for it all.
Our country is now as swamped and consumed by special programs as any communist/socialist country ever was.
It's a great ideal, to help everyone. But to do so, you take from the producers and give to the non-producers. That's why socialism and communisium fails; great idea, but stinks in reality and kills off good countries.
We have our freedom, but we have all the draining bleeding-heart programs of any social/communist country.
Too many social programs draining our taxes, resources and brains; that's how we got here. Only way to get back is to cut off government at the knees and let it only do the basics. Get out of our pockets and lives. Don't save us from ourselves. Let private folks and their families and charities take care of those in need. Harsh, but the only way to save our country IMO.
Sorry about all this politics; I'm responding to, not starting it. Couldn't let it go unanswered especially when some are blaming Bush for it.
Of course families and charities taking care of those in need would strengthen communities and families and weaken dependence on government and its growth. We tend to think government "help" allows us to be independent and not a burden on family. What a crock! We just hire government to go to our families and neighbors and extort money to take care of our responsibilities. Good grief, we're stupid.
Poor guy, he may just be someone who believes that at this point in our history we couldn't afford to go to war. I guess we should just try to appease the people who want to kill us because it would be much cheaper? Maybe we should schedule wars? Maybe the U.N. could pass a resolution?
On the gas part......... maybe that is just to keep the enviro-wackos from saying the current administration is ruining the spread of mountain lions by drilling where we need to.
The message goes on at great length about how the sky is falling because foreigners won't be willing to take treasury securities, etc. It misses the point that we are selling dollar denominated scurities and debt and getting real goods in exchange. Our kids will get one "freebie" when they devalue the dollar and pay off this debt for pennies on the current dollar value. This can only be done once, but it can be done! Not to worry!
-------- How could we have screwed up so badly the greatest national franchise the world has ever seen in a mere 2 generations?------------
I really don't want to argue (I won't post anymore today), but at the start of Bush's term, we had a budget surplus. Nobody can objectively and honestly support how he has completely screwed up this entire economy (and thereby thee and me).
I agree Bush is no fiscal conservative. On the other hand, no president controls the economy, which is mostly a spontaneous order (read up on F.A. Hayek, dude). What really puzzles me is why anyone thinks that the solution is to vote for a Democrat. Of course, people always tell me I'm wasting my vote ... but I don't care (and it's not a horse race anyway): I'm voting for the libertarian candidate next time. I'm a charitable bounder, but I don't like having it shoved down my throat. Mainly, I just want the gov to get its goddamn hand out of my pocket. And if gays wanna get married, more power to 'em. Nuff said.