The Establishment Is Now Concerned About the Deficit (Or is it a sneak attack?)

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Gary North is out with a very important must read article. It dissects a recent "conversation with" Alan Greenspan at the Council on Foreign Relations. In the speech, Greenspan warns about the economy, especially the growing deficit problem. He is correct about this problem and North does a great job explaining why. BUT and I mean a big freaking BUT, as two very tough and perceptive woman, Ayn Rand and Barbara Walters, would surely tell you, Greenspan is a snake and social climber.

Greenspan is not going before the CFR to be disruptive. As North points out:

These meetings are important for this reason. The CFR sets boundaries on what constitutes the climate of Establishment opinion. Remember: when anyone says something for the record at a CFR meeting, he has been screened. He is part of the decision-making class. He minds his P’s and Q’s. He wants to be invited back.

If he is warning about deficits, he knows that the topic can now be discussed in polite society. What’s going on here? Why are deficits now allowed to be discussed when in the past the establishment shunned such warnings as something coming out of the crazed goldbug crowd? I suspect the Establishment is in the process of attempting to co-opt the goldbug/doom and gloom crowd.

North pretty much notes this is going on:

I have long used the CFR as an indicator of what the Establishment sees as the possibilities of the Next Big Thing….when someone famous shows up to give a speech for the record, I pay attention. He may say something significant. He may set forth bad news: the Next Big Problem.

Greenspan mentioned this one: the deficit. In a subtle, garbled way, he sounded ominously like the [Doom and Gloomer] Mogambo Guru. "We’re all freaking doomed!"

No one argued with him….

These people are beginning to sound like hard-money e-letter writers.

Read the rest of the article

©2010 Economic Policy Journal

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