David J. Williams

In my post of yesterday, I made the statement that “[Fed chairman] Bernanke is clearly floundering amidst the crisis that [former chairman] Greenspan spent his career postponing.” At least one commenter has wondered why Greenspan did this, given his focus should have been on the overall economic health of the country. And I’m here to tell you why:

Because he was a chickenshit.

Oh, it wasn’t entirely his fault. As the commenter in question points out, there’s no doubt that Alan Greenspan succumbed to pressure from the Prez, thereby turning what should have been the culmination of a great career into a mockery of everything that career stood for. But Greenspan was just doing his utmost to prevent an economic downturn at all costs.  Costs that included the risk of an even greater economic downturn in the future.  Thus the lowering of interest rates to rock-bottom levels across the early part of this decade.  Thus the ignition of a housing boom that rapidly got out of hand.

But that nonetheless did what it was supposed to:  propel us out of the recession of 01/02.  And something that’s worth noting about that recession is this:  it was the first in American history where our leadership denied its existence throughout its existence.  It was only after it was safely in the rearview that the dreaded R word could be pronounced at the highest levels of state.  And I would argue that there’s a sense that we never truly recovered from it:  that the housing boom constituted, essentially, a false recovery.  All we did was create a mountain of debt that’s now threatening to suffocate us.

Yet before we rush to blame Bush and Greenspan, we should take a good, hard look in the mirror.  Because that’s where the ultimate culprit resides.  Because lately the American public’s relationship with that thing called Reality has been getting pretty dysfunctional.  Something our leaders are smart enough to see . . and cowardly enough to accommodate (and, I might add, greedy enough to exploit).  The American people don’t want to be in a recession.  So . . presto . . no recession!  It’s easy, see?  We just hit the magic button and keep printing more money and your homes keep increasing in value and you can keep on fucking borrowing and borrowing and keep on buying SUVs because we know the only thing that’s as unlimited as dollars is oil and besides daddy I mean Dick Cheney said the american way of life is non-negotiable and you wouldn’t want to see what kind of electoral temper tantrum I’m gonna unleash on any goddamn commie who tells me that it’s NOT . . .

But let’s not get carried away here.  Because Dick also said use your last ten bucks to buy THE MIRRORED HEAVENS.  There’s no better way to spend it.  Trust me on this.