the ledger or article was written by Al Martin

AL MARTIN is an independent economic-political analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. As a former contributor to the Presidential Council of Economic Advisors, Al Martin is considered to be a source of independent analysis for financially sophisticated and market savvy investors.

After working as a broker on Wall Street, Al Martin was involved in the so-called "Iran Contra" Affair as a fundraiser for the Bush Cabal from the covert side of government aka the US Shadow Government.
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The Greenspan Fed policy consistently injected a lot of cheap money into the global economy -- money that was looking for a place to go. When there’s a lot of cheap money, because of a “loose-money” policy, that is very fertile ground for the creation of speculative bubbles in many asset classes.

Greenspan is certainly largely responsible for the creation of asset bubbles, which would not have been created were it not for the Fed keeping interest rates too low for too long.

So how did Greenspan create these speculative bubbles through his policies?

In an environment of exceptionally cheap money, where people could borrow money for, let’s say, 3%, you only needed a very small rise in the value of an asset, particularly a fixed asset class like real estate, to make a profit.

What he created then was a whole new class of speculators by supplying the planet’s economy, not just the United States, with cheap money.
The United States is still the leader to the extent of setting global interest-rate policy. It’s hard for other nation-states to increase their rates without the United States doing the same.

Thus, what he did was to truncate the economic policy decisions of other countries like Japan, Great Britain, and the EU by forcing them to maintain artificially low interest rates, which only added fuel to the fire. ‘Fuel to the fire’ in this case means only added cheaper liquidity.

So what about the actual conspiracy or collusion between the Bush Regime and Fed Chairman Alan Greenspan?

When he came in, he was talking out of both sides of his mouth.

I disagree with this largely. Greenspan managed to make some cheap money available, certainly, but his did this with many years of careful management, bringing the rate lower and lower year by year. This was accomplished by tight control over growth and the economy rather than the reverse as implied by the topic.

If you look carefully at the statistics through the years you will see that he managed to step inflation and interest rates downwards year by year until they finally reached the low levels mentioned in the topic. The rates of both were lowered by about 1% per year. This is done essentially by keeping the economy tight enough to keep the unemployment 1% higher than would otherwise be normally expected. So this process of lowering the interest rates from Paul Volker's legacy rate or 18 percent or so was a 10 to 15 year excursion.

During that time the artificially tight controls over the fed for the purposes of lowering inflation and interest has had the result of keeping the value of the dollar high and increasing the competitiveness of foreign companies in the United States market. There are advantages and disadvantages in this.

Some of the advantages are cheaper imports and more foreign investment in the American economy and particularly the stocks and bonds markets. Some of the disadvantages are higher unemployment and the crushed manufacturing sector in the United States. It is a difficult choice which to prefer because both have serious ramifications. I'll leave it to you to form your own opinion.

Turning this into a Bush bash is a bit of a laugh.

If you want more information about the Keyensian model you might google it.