On Thursday the former boss of the private banker cartel in control of the US economy, Alan Greenspan, told CNBC older Americans are responsible for the financial mess.
He said austerity measures proposed by the Simpson-Bowles Commission would solve the problem. The commission proposed shoring up deficit spending by cutting benefits to the elderly, veterans and government employees. A bill modeled on the plan was defeated in Congress back in 2012.
Greenspan is correct that entitlement spending is responsible for much of the national debt. However, he ignores the fact the class he represents—the financial oligarchy—is responsible for crashing the economy by creating asset bubbles fed by “easy” money policies implemented by the Federal Reserve and central banks.
Greenspan figures prominently in the destruction of the economy, a fact recognized by Time Magazine when it featured him as one of the “25 People to Blame for the Financial Crisis.”
Washington’s so-called “resident wizard” presided over artificially low interest rates that fed the housing bubble and resulted in the mortgage crisis. “Alan Greenspan will go down in history as the person most responsible for the enormous economic damage caused by the housing bubble and the subsequent collapse of the market,” writes Dean Baker.
Punishment and Austerity Preferred Over Economic Sanity
Forty-nine percent, or almost half of all federal government spending, is gobbled up by Social Security and health care entitlements, primarily Medicare and Medicaid, according to the Office of Management and Budget.
Nearly 20% is spent on “national defense,” a euphemism for military occupations, invasions and support for a bloated military-industrial complex.
The rest is spent on a vast federal bureaucracy represented by the Departments of Energy, Housing and Urban Development, Commerce, Interior and Education and handouts to corporations, foreign countries and other lobbied interests.
In 2012 during his failed (and sabotaged) presidential bid, Ron Paul offered his “Restore America Now” proposal. In addition to eliminating wasteful federal agencies and bureaucracy, Dr. Paul addressed entitlements. “We can honor our promises to our seniors and veterans while allowing young workers to opt out of the system so they can keep more of what they earn and take on the responsibility they want to have for their own retirements.”
Paul also proposed cutting the federal workforce by 10%, rolling back congressional pay and perks, and curbing excessive federal travel. He also suggested cutting corporate tax rates to induce business growth and ending taxes on personal savings.
The corporate media and the establishment responded by declaring Paul’s plan would destroy the economy and dismissed it as insane.
Now, instead of common sense proposals, we are subjected to draconian measures offered by Alan Greenspan, who would impose austerity and further turn America into a third world wasteland.
CNBC reported Greenspan’s remarks without commentary.
Ron Paul, however, did not merit such courtesy.