The Risk Averse Alert

The arbiter of finance throughout the trans-Atlantic economies is "the markets." There, due diligence begins and ends. Indeed, this is a topic that has remained absent from the discussion ever since the systemically threatening blowout of the trans-Atlantic banking system began in 2007. Being the ultimate arbiter of finance, then, it is entirely reasonable to think that, if governments were spending too much, "the markets" would have demanded much higher risk premiums. I so disagree with any claim that, governments destroy the fruits of labor. Contrarily, I believe governments, rightly formed, secure the fruits of labor.

Now, as per their "spending," firstly, without the trillions upon trillions of taxpayer backed debt issued throughout the trans-Atlantic over the past few years, the banking system would have collapsed long ago. This, of course, says something about the dysfunctional relationship between governments and the financial system, a condition that has been built up for decades, the likes of which Alan Greenspan most emphatically was instrumental in rationalizing with more sophistry than you can shake a stick at, while at the same time allowing to immeasurably widen the chasm separating governments’ ultimate funding requirements — those conditions governments need in place in order to easily retire their debt — and those of the private sector, which, itself, under Greenspan had come to be dominated by the financial sector in a manner virtually assuring governments’ finances ultimately one day would be threatened.

I’m no Keynesian. Rather I’m a Hamiltonian. That which Greenspan was put in place to rationalize was known by some from his very beginning as Fed chairman to ultimately threaten even that soft form of imperialism which is Keynesian economic theory, while at the same time destroying anything remotely Hamiltonian that would ensure the viability of government was never compromised. The casino economy Greenspan endlessly rationalized was made to destroy sovereign government’s power. And here we are. His accomplishment stares everyone squarely in the face and yet any blame government rightly should be assigned for this condition is that the likes of Greenspan was tolerated for even a minute. The only government “spending” we are right at this time to lament is the endless hours it spent listening to his bullshit, while continuing to do the same with his successor.

That “out of control spending” the political right continuously rails against rather stands as the sure sign Greenspan should be sharing a prison cell with Madoff for bankrupting the nation with the Ponzi scheme his policy at the Fed both supported and nourished to such an incredible extreme as led to governments’ debt burden being put on a parabolic trajectory, this, itself, serving to feed the swindlers on Wall Street and the City of London who profited most handsomely from the arrangement, the very likes of whom to this day in fact require endless taxpayer bailout if they are to remain afloat. Our so-called “entitlements” liabilities are not the source of our threatened national bankruptcy. That deed already was done on Greenspan’s watch. These so-called unfunded liabilities stand as a symptom of that bankruptcy, not its cause.