What seemed like a crazy conspiracy theory just two years ago is now a documented fact; the Bush Administration (with the help of Greenspan) is trying to bankrupt the nation and put the American people under the control of the country’s creditors (Greenspan’s friends in the banking industry and foreign countries holding US bonds). So far, they’ve done a bang-up job by racking up another $3 trillion in debt in just 4 years by looting the US Treasury and jeopardizing the dollar’s status as the world’s reserve currency. If the world moves en masse away from the dollar (as it may, if Bush goes ahead with his twisted plan for attacking Iran) the US will rapidly devolve into a third world nation.
Currently, the dollar is underwritten by $8 trillion of debt; which explains why world banks are dumping their holdings. The only thread holding the economy together is (artificially) low interest rates, cheap oil and $450 billion of tax cuts that are sluiced back into the economy (according to Supply-side theory). When these three buckle beneath the weight of the increasing debt load, the American dream will go up like a pillar of black smoke from a Baghdad pipeline.
From this viewpoint, it looks like Greenspan is intentionally keeping interest rates low so Bush can keep his (war) date with Iran (probably just months away). When the Fed-chief finally pulls the rug out from under us and raises rates to save the dollar, housing will grind to a halt and America will stumble into recession, or worse.
Axis of Logic article
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