Fwd: Re: GREENSPAN ON FEDERAL RESERVE BOARD MONETARY

>From: JackCurtis@aol.com
>Date: Fri, 23 Feb 2001 15:56:12 EST
>Subject: Re: GREENSPAN ON FEDERAL RESERVE BOARD MONETARY
>To: ajdobron@students.wisc.edu, dti-discuss@envirolink.org,
>        alliance-democracy@lists.services.wisc.edu
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>Reply-To: JackCurtis@aol.com
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>
>
>In a message dated 2/22/01 6:21:00 PM, ajdobron@hotmail.com writes:
>
>>>
>>> >
>>> >"Fed Changes Procedures On Securities," by
>>> >Jonathan Fuerbringer in the New York Times,
>>> >February 14, 2001, page C4.
>>> >
>>> >This article reports on testimony by Federal
>>> >Reserve Board Chairman Alan Greenspan, in which
>>> >he discussed the possibility that the Federal
>>> >Reserve Board may start buying and selling the
>>> >bonds of state and foreign governments as a means
>>> >of conducting monetary policy. This will become
>>> >necessary if the federal government continues to
>>> >pay down its debt, since U.S. government bonds
>>> >will become increasingly scarce.
>>> >
>>> >This issue received very little attention in this
>>> >article. (It was not mentioned at all in the Post
>>> >coverage of the testimony.) The implications of
>>> >this change in policy are enormous. If it were
>>> >instituted, the Federal Reserve Board could
>>> >devastate a state or foreign economy, if the Fed
>>> >dumped their bonds because it disapproved of
>>> >policies they were pursuing.
>>> >
>>> >It is remarkable that Alan Greenspan would
>>> >suggest that the Federal Reserve Board should be
>>> >allowed this power. Two weeks earlier he had
>>> >testified that he supported a tax cut because he
>>> >felt the federal government should not be in a
>>> >position where it accumulated the assets of
>>> >private corporations. He argued that this would
>>> >allow political interference in their operations.
>>> >This testimony implies that he believes it is
>>> >appropriate that the Federal Reserve Board (a
>>> >creation of the federal government) should have
>>> >the sort of power over state and foreign
>>> >governments, which he believes is inappropriate
>>> >for the federal government to have over private
>>> >corporations. If Alan Greenspan and the Federal
>>> >Reserve Board intend to assume this degree of
>>> >power, the issue deserves far more attention than
>>> >it was given.
>>
>
>My conclusion is that the people in foreign lands will have to exercise 
>control over what bonds their govts issue BEFORE they get issued (ha ha), 
>rather than after by simply refusing to buy the bonds.  I agree the U.S.Govt 
>seems more interested in controlling foreign countries than in controlling 
>large corporations, for whatever reason, & find it interesting that even the 
>greedy Feds could have such an embarrassment of riches in their treasury that 
>they can't find something useful to do with it here at home, like reversing 
>the tide of turning our penitentiaries into slave labor camps, perhaps.
>[signed, From: JackCurtis@aol.com]