[FoRK] Critiquing Alan Greenspan

Owen Byrne owen at permafrost.net
Mon Mar 28 19:53:45 PST 2005


Bill Stoddard wrote:

> Jeff Bone wrote:
>
>>
>>  From The Cunning Realist:
>>
>>     
>> http://cunningrealist.blogspot.com/2005/03/maestro-living-history.html
>>
>>
>
> Jeff,
> Which side of the inflation/deflation fence are you on (for the US 
> economy)?  My arm chair economist thoughts...
>
> World capitalism (and respect for property rights), increasting 
> democratization and the internet will prove deflationary to the US 
> economy.  US wages (and consumption) must fall during the global 
> rebalancing we're just now entering.  US workers whose professions can 
> be carried out 'remotely' (ie, most of high wage america) are the 
> autoworkers of the 21st century. As folks begin to loose their homes 
> due to layoffs and 'restructuring', we will see a strong shift toward 
> socialism (and trade restrictions) in the US.
>
> B
>
Well as a somewhat fervent anti-american at times, I have to say - 
naahh. The same kind of soul searching went on in the 80s when Reagan 
was king and Japan and Germany were threatening to demolish your 
prosperity. Then you elected a Democratic president (or at least a 
relatively weak one). Once you have a government that stops reducing 
your freedom (and your economy with it) things will get better 
instantly. The fundamental effect of Bush's tax cuts for the top 1% was 
massive disinvestment in the US - the wealthy needed to diversify. I 
think going long on the dollar right now would be a smart move.

Owen





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