Zero Hedge brings us yet another epic article that highlights the fact that the Fed knew all the way back in 2005 that the housing market was getting totally out of hand.
Toss the consumer under the deficit wheel of the bus and laugh about it:
“–I offer one more piece of evidence that I think almost surely suggests that theend is near in this sector. While channel surfing the other night, to the annoyance of my otherwise very patient wife, I came across a new television series on the Discovery Channel entitled “Flip That House.” [Laughter] As far as I could tell, the gist of the show was that with some spackling, a few strategically placed azaleas, and access to a bank, you too could tap into the great real estate wealth machine. It was enough to put even the most ardent believer in market efficiency into existential crisis. [Laughter]
~David Stockton, Dec. 13, 2005, economist and Fed comedian.
Rob the consumer and then toss them under the currency tire and laugh about it:
“Absent a dollar depreciation that’s now probably on the order of 8, 9, or 10 percent, the deficit is going to steadily worsen. If the dollar were to start depreciating, that would slow the rate of deterioration. If the dollar depreciation that we put into the forecast were to get as high as 8 or 9 percent, that might plateau the deficit”.~Johnson
“One thing we can be sure of is that the value of the dollar will be worth 100 cents.” [Laughter]
Of course, Greenspan and his band of henchmen knew exactly what effects their policy would have ahead of time. Greenspan used to be an ardent advocate of the gold standard, a follower of Ayn Rand, and a fellow Austrian traveler, which means he had to know with total certainty what effects his policies would have.
In the above commentary, we can see that not only did Greenspan fully understand the implications of his policy, but so did his merry band of comedian thieves – and they laughed about it.
They are laughing at you.
The sucker who still believes in the State.