Saturday, 15 September 2007

Greenspan on Bush

Former Federal Reserve Chairman Alan Greenspan in a memoir to be released on Monday criticized President George W. Bush and congressional Republicans for abandoning fiscal discipline and for putting politics ahead of sound economics.

In his book, "The Age of Turbulence: Adventures in a New World," Greenspan said he was surprised Bush was unwilling to temper his campaign promises with fiscal reality once elected in 2000, as previous Republican administrations had done.

"Little value was placed on rigorous economic policy debate or the weighing of long-term consequences," he said.

Greenspan said Bush's combination of tax cuts and spending on the military and prescription drug benefits, while not "unrealistic" in 2000 after several years of federal budget surpluses, was not appropriate with growing deficits that
returned in 2002.

The former Fed chair said he urged Bush to veto a string of "out-of-control" spending bills, but to no avail. He was told the president wanted to avoid antagonizing Republican political leadership.

"To my mind, Bush's collaborate-don't-confront approach was a major mistake -- it cost the nation a check-and-balance mechanism essential to fiscal discipline," Greenspan said.
What it really means is that Bush has no idea at all what he is doing. He just does as he is told by senior White House staff.

The Republicans
sowed the seeds of their political defeat in 2006 by abandoning fiscal prudence.
"They swapped principle for power. They ended up with neither. They deserved to lose," he added.


UPDATE

The book also admits that the invasion of Iraq was about oil.

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