Yes, AMERICA, The Master Con-Artist is Mr. Greenspan is doing what the Banksters did in the prosperous Twenties.
He lies to Congress about the Money Supply he controls.
Read about the real cause for the Great Depression.
By Martin Crutsinger of the ASSOCIATED PRESS
WASHINGTON - The Treasury Department on Thursday will buy back a part of the national debt for the first time in 70 years, officials announced Tuesday.
The initial repurchase operation will cover only$ 1 billion and will be limited to 30 year bonds issued between 1985 and 1990. Treasury officials said they kept the initial operation small in an effort to test the market response.
Treasury Secretary Lawrence Summers had announced in January that the government hopes to buy back up to $30 billion of the $5.7 trillion national debt this year. The administration's budget projects that the entire $ 3.7 trillion of the national debt that is held by the public could be wiped out by 2013 under current projections for budget surpluses.
The Treasury had said in January that no debt had been bought by the government for at least a century. But further research found a limited buyback as recently as 1930.
Editor's Note: These facts you won't learn in economic history classes in college !!!! The Bankster's control most college economic curriculums.
The 1920's were the last decade in which the government ran a string of annual surpluses. In 1998, the government enjoyed its first budget surplus in 29 years and the 1999 surplus marked the first time since Dwight Eisenhower was president in the 1950's that the government had been able to post back-to-back annual surpluses.
While those surpluses are projected to run for years to come, economists caution that any forecast that far into the future is likely to be wrong.
The Clinton administration, which counts elimination of soaring budget deficits as one of its greatest achievements, has argued that the most responsible thing to do with the excess cash is to reduce the national debt, putting the government on a sounder footing to deal with rising costs when the baby boom generation begins retiring in a few years.
....The FED and the Market
By David R. Francis,
Staff writer of The Christian Science Monitor
MAYBE IT'S TIME "to accumulate some cash," economist Beryl Sprinkel advises shareholders. He believes that the stock market might take a bad tumble, the result of tightening monetary policy by the Federal Reserve.
Dr. Sprinkel was President Reagan's top economic adviser for his last four years in office.
Before that, he wrote two persuasive books linking Fed monetary policy to the ups and downs of stock prices. They were published in 1964 and 1971.
That link, he says, still holds today.
If the Fed is supplying lots of money to the economy, stock prices subsequently rise. If the Fed is stingy in providing the currency and bank deposits to feed the economy, stock prices tumble.
And right now, notes Sprinkel, the Fed is "in the process of tightening up." Though it is too early to be a meaningful trend, the money supply has shrunk for a few weeks. Partly this is because commercial banks have been getting rid of excess reserves accumulated in the event of Y2K computer troubles.
Most economists figure Fed policy is crucial to the business cycle and thus to stock prices.
"I agree with Beryl," says Mickey Levy, chief economist at Bank of America Securities, in New York. If the Fed tightens, the stock market will "correct."
And Mr. Levy - like many on Wall Street - expects the Fed to push up short-term interest rates a couple of more times in coming months.
"The monetary environment is the single most important influence on the cyclical swings of the equity market," holds William Helman, a New York analyst with Salomon Smith Barney, a major investment banking firm.
Yet ifs recent swings in the stock market that concern Alan Greenspan, chairman of the Fed. In testimony to Congress last month, he stated that equity values increasing at a rate faster than income, other things equal, will induce a rise in overall demand in excess of potential supply." " That situation "can not persist without limit."
Mr. Greenspan's concern with stock prices bothers Sprinkel. He wants the Fed to concentrate on providing the economy with a steady, modest supply of money to moderate the business cycle and keep damaging inflation at bay.
Sprinkel praises the Fed's stable hand on monetary policy in the past decade. But over the past 12 months, he says the Fed has been a little too generous in supplying money to the economy.
And he's a "little bit scared" that the new Fed emphasis on stock prices will "screw it up."
In the 1920's, Sprinkel notes, the Fed was frightened by the bull market in stocks, braked monetary policy too much, and caused the Great Depression. More recently, he recalls telling President Reagan that the tightening of money by the Fed after 1985 to strengthen the dollar on foreign-exchange markets could cause a recession and a stock-market debacle.
In 1987, the market did plunge. But a recession was avoided.
Similarly, the Bank of Japan, worried by the extreme speculation in Japanese stocks and real estate in the 1980's, put on the brakes hard. Japan is only now coming out of a near decade-long slump.
Anna Schwartz, an economist at the National Bureau of Economic Research in New York, also figures monetary policy is "too lax," allowing the economy to grow at a rate that "should concern the Fed."
If the Fed pushes short-term interest rates to 7 percent, as many forecast, it could sharply reduce economic growth and burst the stock-market bubble, she warns.
Greenspan, now seen as a "miracle man," could be quickly billed as a "destructive force," she says.
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Editor's Note: In Congressional Testimony, last month, GSpan said, he couldn't define "Money Supply", so he could no longer manage it. Read the following to see how he lied.
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FRANCIS continues....
Figuring out the Federal Reserve's monetary policy presents a never -ending challenge for economists.
Nowadays, the central bank usually signals in advance a hike in interest rates. But economists must still determine if monetary policy is easy or so tight it will slow the economy and hit stocks.
To do that, economist Beryl Sprinkel, now retired in Florida, follows a measure of money called M-2. It includes currency, demand deposits, savings deposits, and moneymarket accounts and funds.
Over the past 12 months, M-2 has grown 5.7 percent - a bit too much in Mr. Sprinkel's view. He would like the Fed to take actions that would result in the M-2 rate coming down to 5 percent. That is not "a massive task," he says.
Allan Meltzer, a monetary expert at Carnegie-Mellon University in Pittsburgh, prefers the "monetary base," a measure that includes currency and bank reserves, and which the Fed can control relatively closely.
It grew rapidly last year as banks built up Y2K-related reserves. It has plunged in recent weeks as that need evaporated.
New York-based securities analyst William Helman maintains a monetary-pressure index based on relationships between various interest rates. That index has been negative since last May, possibly signalling a market correction.
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