Alan Greedspan

Engineering the 'Creative Destruction'

of the United States

 

 

We don't know what were doing, but "we're learning at full speed ahead". 

 

Click Here To Hear Greedspan

 

Lessons learned will be, "Whoops, excuse us... we're sorry, we destroyed your country - you are no longer first world, you are now third world"...Sorry, Sorry, So Sorry. 

What Greenspan did in conspiracy with others of the Reagan Administration and Wall Street was to engineer the destruction of the American economy for the benefit of the big financial firms.   The growth of China and India is coming from the 'creative destruction' of the United States.

The following audio clip was from a Congressional hearing on China-U.S. trade relations.  This hearing should be required listening for every American citizen - and they should be tested on it afterwards!

Audio Clip

xxxxx

So... What did he say?

"What we are confronted with is the consequences of an extraordinary change in globalization in recent years which has augmented trade and current account balances throughout the world - at the same time that process has created an increasing rate of growth and economic activity virtually worldwide and has redounded very specifically to the benefit of the United States economy.  

We are looking at what is the extension of what has gone on in this economy - our economy when we moved from local markets to national markets."

xxxxxx "Augmented trade and current account balances"  is a slick way to make a negative sound positive.  Our current account balance has been 'augmented' to the negative - to the tune of over $800 BILLION in the HOLE annually

Trade has increased to the benefit of China, India and Mexico which has given them a current account surplus - meaning that they (and their multinational partners) are raking in the money from the economic activity moving from our country to theirs - while we go in the hole. 

The bit about specifically to the benefit of the United States economy is a bald faced lie as reveals in his next statements.

   
At the turn of the century when industrialization began, people left the countryside to move to the cities where the jobs were.  What was left in the rural areas were abandoned communities - ghost towns as they lost economic activity. 
 
"What we are observing now and itís very specifically in the last decade or so is the emergence of national economies - the trade in national economies which had been restricted to national economies spilling over sovereign borders and in the process creating a much broader global market system, the statistics of which will begin to show very significant increases in the dispersion of current account balances and trade balances - which it is,  in the same way that had we in the United States been measuring trade imbalances amongst the 50 states we would have found a very large increase in the dispersion of trade surplus and trade deficit within the United States.  So that this is a process really merely reflects a broadening of globalization which is in my judgment and I presume almost all economists something that is significant positive force for world economic growth and prosperityÖ.."
Production and capital stayed within the United States.  It provided a ladder upward for people to progress economically and it provided a rising standard of living. 

 

 
This is the 'broadening' of the U.S. economy.  The second part of the statement that Greenspan didn't say specifically was the flattening of the U.S. economy.

This is a worldwide redistribution of wealth from the United States to the world with the benefits accruing only to the banksters and the multinational corporations as they drain our economy of its wealth. 

The U.S. economy will never recover under these conditions.  The standard of living for the American people will drop to third world levels and our infrastructure will crumble from lack of capital to rebuild it. 

In the process, you create a very significant amount  of winners and losers. 

Given that the advantages are so much greater than the deficits, how do we take care of those who are on the wrong side of this process - and I do emphasize that what our international trade policy should be focusing on is finding how we put resources - basically much of the resources that we gain from globalization to assist those who are on the wrong side of the adjustment to retrain, combat and if necessary, at least get a means of redress which recognizes that there are very significant problems in any competitive - any advance in economic activity. 

Indeed you cannot have an advance in economic activity unless you have obsolent industries, cash flow moving to finance cutting edge types of capital investments which we are engaged in the United States.  It would be nice if it were different but the world only gives us the choice of stagnation or advance and if we choose advance, it occurs only in the context of moving capital from older industries to newer industries with the consequences that that clearly has.  Itís that process problem which I think we should direct our efforts to adjust. 

  The losers are the American people and our country.  The winners are the foreign countries that are receiving the economic activity and the multinational corporations who are bringing it to them.

In the second paragraph - he talks about compensating the victims of globalization - but this is just the empty and fraudulent promises that more education will bring back our economy.  It simply is not true because there won't be any jobs requiring more education - just the opposite in fact.  We will need far less education so that people won't be educated enough to know how they were betrayed by the very people who were entrusted to care for the health of our nation and the well being of its people.  

Effectively, what Greenspan is saying is that our economy and our country is obsolete and they need to move their capital to new markets.  Notice how he transitions from talking about people to talking about industries and as if the cutting edge industries were in the U.S. and not being exported.  This is a classic  example of 'sleight of mouth' - changing the subject in mid sentence without taking a breath or blinking an eye.
This is an exchange on the current account deficit and income between Max Baucus (D-MT), John Snow and Alan Greenspan.

Current Account Deficit Defined

Graph of Current Account Deficit - notice how it has skyrocketed since we got into the WTO and how the percentage of foreign ownership of American has increased.  Effectively, the 'free traitors' who got us into the WTO and globalized our economy have been selling the United States right out from under us. 

Now you know why they are trying to dissolve our national sovereignty, they are building a police state and why they flew airplanes into buildings.  This is nothing less than grand theft - country.

 

 

Baucus-Greenspan Audio Clip

 

All of the hype around globalization says that 'free trade' is good for the United States.  There are two truths the people don't understand because of the government and corporate propaganda on this issue. 

1.  What's being promoted as free trade - isn't free trade.  It is centrally planned trade that was designed to put U.S. domestic businesses at a disadvantage which is why we've had so many corporations move to China, India and other offshore locations.  In agreeing to these 'free trade' agreements, our own government has effectively declared economic war on the American people for their own personal benefit and the benefit of corporations who buy their candidacies.  . 

2. The is no fix (i.e. more education, restructuring, merging with Canada and Mexico) that will correct the problem.  The U.S. economy will continue to decline, our infrastructure will crumble and the standard of living for the American people will continue to drop to third world level.