By testifying emphatically before the senate finance committee that he sees “no
signs of inflation” in the U.S. economy, Alan Greenspan proves that he
bares more than just a physical resemblance to the visually-impaired Mr. Magoo.
The warning signs are plainly there for all to see. The money supply is growing
rapidly, gold,oil, and other commodity prices are soaring, the dollar is collapsing,
and the federal budget deficit is about to explode. How can Mr. Greenspan not
see any of these overwhelming inflation signs? Such an obviously disingenuous
statement by a Fed Chairman who clearly knows better should discredit his entire
testimony as nothing more than political propaganda.
Greenspan’s myopia also extends to his inability to see any of the other overwhelming
problems associated with high levels of personal debt, the “housing Bubble,” the
rising and admittedly unsustainable current account deficit, a still deflating
stock market bubble, a growing federal budget deficit, the systemic risks associated
with Federal contingency liabilities and financial derivatives, under-funded
pensions, over-leveraged corporate balance sheets, and the tenuous fiscal positions
of the 50 states.
Is it just me, or does any one else get the distinct impression that muttering
Mr. Magoo is about to stumble out of a 40th story window?
If you would like to discuss the not so comic consequences for the return
of inflation to the U.S. economy, I would invite your call.