Greenspan's Uselessness

Well, hell isn't freezing over, but Alan Greenspan has finally recognized that the budget deficit is a bad thing. He didn't say exactly like that, of course; more like this:

"Our fiscal prospects are, in my judgment, a significant obstacle to long-term stability because the budget deficit is not readily subject to correction by market forces that stabilize other imbalances," he said.

Okay, so big deal. But then he followed it with this in regard to two other worrisome issues, namely, the trade deficict and the giant consumer debt:

The Fed chief said rapid globalization may have allowed the United States to carry large trade and budget gaps so far without economic harm.

Translation: So long as we can bully less-powerful nations into agreements favorable to our trade policy, no matter how poor it makes them and no matter how repressive the governments we have to install or support, then we can continue down this idiotic and delusional consumerist path.

Then, when asked if something fundamental had changed to allow us to act in such an irresponsible matter, he quipped,

"Regrettably, the answer is no; the free lunch has still to be invented."

Well, damn! There's no free lunch? I'm just fucking amazed. This Fed chief is so awesome!