Alan Greenspan Tells All

So the other day, former Objectivist and Federal Reserve Chairman Alan Greenspan told us exactly what the scheme is of the United States Federal Government and the Federal Reserve:

Alan Greenspan spews crap out of his mouth

So basically Alan Greenspan just told us what the whole scam is.  The Federal Reserve’s printing of money has nothing to do with boasting the economic outlook of our country, at least that is not the primary goal.  No, the primary goal is to keep pace with the expansion of the Federal Debt, which has accelerated in the past three years.  To be fair, it does seem to be following the exponential curve rather beautifully though.

In other words, this has nothing to do with us, the average citizen, but everything to do with protecting the excesses of the Federal government.  They are devaluing the dollar for the sole purpose of ensuring that the United States Federal government does not default on its debt.  In a sense, it is a reaction to the excessive Federal spending.

I do not know how this has been lost on most people.  In essence, we are being sodomized by both Feds (government and reserve) and nobody seems to really care.  No, even free market libertarians are wringing their hands about freeing up banking regulations to that they can lend money.  If they were smart, they would know that lending money only serves to encourage the Federal Reserve to print more money to lend, which in turn leads to inflation and ultimately price inflation (yes, the two are very different concepts if you went to the right economics school).

This leads to another thing: the monetary cycle has been cracked.  I suppose it was not too difficult, but now that Alan Greenspan has openly admitted to it, I suppose we can now treat it as fact.  The monetary cycle is as follows: the government goes into debt then the Federal Reserve prints more money to keep up with the debt which in turn allows the government to acquire more debt via excessive spending.   I guess a more accurate description would be a monetary spiral, since it is not a perfect circle.  And we are spiraling out of control.

This is the end though.  I have a suspicion that this is the final turn of their wheel and the ending can be peaceful.  It will be up to them.  But I suspect that the political class will continue to behave like this: