Reply #17: Greenspan Baited Clinton and The Democrats Into A Trap

[Yavin4]

At the very start of Clinton's presidency, Greenspan met with him and promised Clinton that if he got the deficit down, he'd keep interest rates low. Well, the Democrats in congress went along with the deficit reduction plan, and it cost a lot of them their seats. Meanwhile, Greenspan reneged on his deal. He constantly raised interest rates throughout Clinton's presidency.

Then, to make matters even worse, he spat in the face of congressional leaders who had finally brought fiscal sanity back to Washington when Greenspan endorsed Bush's tax cuts in early 2001. Also, while the deficit has been careening out of control, Greenspan has kept interest rates historically low. As a result, we have tons of borrowed money with no means of paying it back. That's why the world is turning its back on our dollar. No one will loan you anything if you don't offer something of value in return.

The crash of 2006 will be laid at the doorsteps of Alan Greenspan and Bush.