Tuesday, September 20, 2011

Quit deluding yourselves, Greenspan is not for free markets

I don't think it is too controversial to say that politicians lie. Since I know politicians lie, I do not put any stock into their words and try to only look at their actions and the results of their actions. So it frustrates me to no end when I see people believe a politicians words over their actions and I have been hearing a lot of this lately. Don't tell me that Reagan believed in smaller government, when the government grew so exponentially under Reagan as president. Don't tell me Obama is anti-war, when his actions clearly show he is not. Don't tell me that the politically connected asshole Warren Buffett thinks the rich should be taxed more, when he has structured his pay to avoid most taxes and has not offered to voluntarily pay anything extra. Today I heard this doozy, “Devoted market fundamentalist Alan Greenspan now in favor of tax increases”. If you look at actions and not rhetoric, there is nothing to indicate that Greenspan believes in the free market in any way, shape or form, he believes in price fixing from an overarching power, the furthest thing possible from the free market.

In the free market interest rates are set by the availability of savings to lend out. When people save more money there is more money to lend out and so interest rates decline. When there is less savings, there are fewer funds available for lending out, so interest rates rise. This is how interest rates are determined in the free market. This has absolutely nothing to do with how interest rates were determined during the Greenspan years, so it is a complete lie to say he is a devotee of the free market. It doesn't matter if at one point he was a friend of Ayn Rand, or wrote papers about the free market, or any of that stuff. Simply look at his record and you can see that he is full of shit.

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