In his latest economics video blog, Peter Schiff discusses the turnaround in the views of Alan Greenspan, who appears to be returning to his Randian roots by promoting cuts in government spending, despite having personally blown up one of the biggest financial bubbles of all time, when he was in power himself as the former Wizard of Oz at the Federal Reserve.
It would seem that Lord Acton is still correct after all of these years:
“Power tends to corrupt; absolute power corrupts absolutely.”
Lord Acton, Letter to Bishop Mandell Creighton, 1887
Now that Mr Greenspan has laid down the emerald baton of power at the Federal Reserve, it would appear that his thoughts are becoming unclouded again.
I don’t see him becoming a Randian pirate, quite yet, and personally raiding Fort Knox to hand back what’s left of its gold bar supply to the American people, but it is still good to see that The Undertaker is starting to disavow the use of the printing press as a cornucopia of endless bliss.
Schiff also discusses the US government’s new plans on financial regulation and how these plans would have done nothing to prevent the crash in 2008, even if these regulations had been instituted five years ago. Schiff thinks that the new regulations are merely smoke and mirrors to deflect the blame for this ongoing crash from sticking to the government; instead of introducing central planning impositions on how banks should charge their customers, to save a few customer account pennies, Schiff wants governments to introduce massive tax cuts to benefit taxpayers in a much more visceral and straightforward way: