Likely also explains the ostracism of the UMKC school by the orthodox community [and the ultra-orthodox as well :( ].
Firing Alan Greenspan
Transcript:
Prof Michael Hudson discusses Greenspan's reputation in his formative days on Wall St.
This is the transcript of an interview with Michael Hudson, discussing a 1966 incident:
MH: They increased [relative taxes on labor] largely by having Alan Greenspan create the Greenspan Commission to look at social security and pushing the myth that social security had to be funded out of pre savings, so American labour was essentially taxed 11% between itself and the employers to pay social security and this vast increase in social security taxes was used to lend to the Government(US) to provide it with enough money to slash taxes on the rich and that was Greenspan’s ploy.
He was rewarded by being made head of the Federal Reserve for his actual hatred of labour and his desire that you had to reduce living standards in order to increase the profits of capital.
And so Greenspan was sort of the hack that was hired.
When I was on Wall Street, Greenspan was hired as part of a study I was doing on the balance of payments of the Oil Industry. And one day my boss, John Deaver came into my office and said he really worried about Greenspan being a part of this report because he was known as a hack that always gave …his clients what they wanted instead of something actual.
So he (JD) gave me Greenspan’s figures on depreciation of oil producing refinery assets in Europe and asked me to find out where the faking is? He said he couldn’t believe that Greenspan by himself wouldn’t of just faked the figures and it took me about a week to figure out where the faking of the figures came out (from) and that was Greenspan had simply picked up depreciation rates relative to output for the United States and projected them onto Europe.
So I went over and talked to his assistant Lucille Woo and she said “it’s all implicit, all implicit” and I confronted her with it and she said “Yes that’s what we did”!
And so, Greenspan was indeed ‘talked off the study’ and we met… John Deaver, David Rockefeller and myself and I was told…Greenspan was such a little bastard that if they fired him, he’d hold a grudge against Chase Manhattan for years and they told me to be the guy to give him the news that we couldn’t use his (laughs) statistics on it and I was a 25 year old economist at the time and he hardly new me at all, so I was the guy that…subsequently became known as ‘the man who fired Alan Greenspan’."
(hat tip @RenegadeEcon)
(hat tip @RenegadeEcon)
5 comments:
The mounting evidence is beyond anything I'd previously conceived.
Just like War/Royalty, Socialism/Communism/Bolsheviks, Nationalism/Fascism, Trade/Colonialism/Free-Trade, Religion/Crusades/Zionism, Democracy/NeoCons ... yada, yada ... every human institution is most vulnerable to being co-opted at the top. It only takes one person to pervert a Presidency, 5-10 to pervert an administration or religion, only a few hundred lobbyists to pervert a Congress, etc, etc.
The Alexander the Great of today is likely some social parasite smart enough to remain incognito, while his lobbyist army uses novel propaganda & concentrated funding/taxing tactics to cut through social defenses like a knife through butter. We just haven't read about them much - yet. The best strategy for parasites is prolonged lack of detection.
Control Frauds as amazing parasites, co-opting hosts to the point of response titration.
http://www.amazon.com/The-Best-Way-Rob-Bank/dp/0292706383
https://www.google.com/search?sourceid=chrome&ie=UTF-8&q=amazing+parasites
Roger, sounds like you are describing the Koch bros, who are enraged their cover has been blown recently.
Some German official recently said (reported in a previous post) that the reason they are able to get ahead in alternative energy development and deployment is that they have no Koch bros. to deal with.
Mr Hickey,
could you give us a link on
the Koch's cover being blown? Just curious.
Unrelated: someone (maybe you?) said that the last instance of demand-pull inflation in the USA occurred in the 1920 inflation spike. Wondering if there are links on that notion. (I agree that all significant inflation in the West since 1970 is from oil.)
Finally, on this article: if you include the 1.45% employer and employee medicare cost, the total tax on employee economic activity for minimum wage people is about 15% (and then the federal rates are really 9%, 14%, 24%, etc).
So, you already have a flat tax when you look at a Forbes' long-term capital tax rate and a burger flipper's rate.
@ Anonymous
The Koch Bros Exposed at Rolling Stone.
HUNT: So they were just lucky. It was a broken clock, right, price of day with them.
GREENSPAN: Well, let me put it this way, I know most of the people who’ve done well here...they are a handful. People who can consistently call a turning point are very rare. The vast proportion of economists, myself included, have records which are average...
the problem here is that there’s a failure to understand what would happen, if you took 1,000 people and you split them into two and you had them toss coins against each other, when you get down to the last two guys, tell them that they don’t know how to toss coins
1. Do you noticed what Alan Greenspan left out here? It's not just he "knows" most of the people who profited off this crisis. HE'S WORKING FOR THE RICHEST ONE. John Paulson made literally billions of dollars by betting against the housing bubble, and hired Greenspan in January, 2008 before everything completely collapsed. (And not just that: Paulson also took a fraction of his billions and endowed an Alan Greenspan Chair in Economics at NYU.)
In other words, either Greenspan just called his boss a man who's not particularly insightful and just got lucky...or Greenspan (and Paulson) know this is the line of crap you have to peddle to the rubes. I'm going to guess it's the latter.
Alan Greenspan: Still A Lying Sociopath After All These Years
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