I thought that was a threat never actualized.

Saddam had UN approval to use sell Iraqi oil for Euro.

Meanwhile, the Iraqi civil war heats up even more:

BAGHDAD, Sept. 25 — Sunni extremists appear to have begun a systematic campaign to assassinate police chiefs, police officers and other Interior Ministry officials throughout Iraq, with at least 10 attacks in the last 48 hours.

Its the inevitable settling of scores since the Interior Ministry is controlled by the Badr corps, formed under direct orders of Khomeini, the SCIRI (since renamed) militia – the most gung ho on de-Ba’athification that dispossessed Sunnis.

I’d wager Greenspan was more worried about Saddam switching to the Euro.

Agreed.

I loved this interview. I was unaware that Republican’s were scared of “surplus’s”. Amazing. It does tell us alot. They would rather put our grandchildren in debt, than for the government to have extra money on hand to spend on social programs. I believe that is some kind of crazy. Or they’re scared that the government may use the surplus money to buy necessary corporate entities. Amazing yet again. Talk about saving us money! But, alas, no warries of that happening.

Greenspan’s reasoning is that you need some degree of inflation for economic growth. Surpluses imply not enough is being spent to boost consumption, hence deficits act as economic stimulants to growth in the absence of inflation. The only dissonance with this thinking is that it lacks logic. If none of the spending is directed towards real investment and labour arbitrage channels all investment spending overseas, after a time domestic productivity has no hope in hell of catching up with overseas competitors.

I’ve always wondered why Greenspan was so furiously concerned when regular wages rose, seeing that as inflationary. But he never cared a whit when the wages of CEO’s rose. Somehow that wasn’t inflationary at all, under his rubric, just their due I guess.

It was the Laffer curve and its trickle down effect – a voo doo economic theory that has been conclusively disproved by empirical evidence.

Biodun @ 12

Just reading the snippet of the transcript above, Naomi Klein makes Alan Greenspan sound like an idiot.

You should see what Ravi Batra does to him in “Greenspan’s Fraud: How Two Decades of His Policies Have Undermined the Global Economy”!

I haven’t read Batra’s piece yet but I had been wondering very very loud since 2004 as to what the IMF was doing – that institution had taken it upon itself to prescribe monetary policy parameters since the 1980s, ruining many developing economies in the process.

Yes, the housing bubble was evident by late 2004 but the shady world of credit derivatives along with regrading of risk ratings by Goldman Sachs, Standard & Poor et al foreshadowed disaster that had to happen.

It has all happened before in 1929 and in the early 18th century with the South Sea Bubble.

And Naomi Klein is excellent in the media. Cuts through almost every time.

Amy’s amazing. First, the on-scene Jena stuff and now direct, difficult questions to Greenspan.

The best part is his total inability to address the billions that went missing in Iraq after delivery from his Federal Reserve bank in New York.

Speaking as an inside media person, I think the interplay between Amy and Naomi was very strong and a network looking to improve ratings ought to sign them up immediately as Evening News anchors.

amy’s been doing this kind of reporting at least since the east timor genocide (where she witnessed a masacre and was lucky to escape alive)… and her reporting on the haiti coup in 2004 was unlike anything i’ve seen any where else. and those are just a couple of examples.

as for going to corporate media – i’d be very surprised if amy would do that… with democracy now! she’s got a program that’s her own creation, complete freedom to report on what she wants (pretty good funding too, if nothing like network or cable news).. and an expanding market. pacifica and democracy now! are, i think, totally funded by member donations – no corporate sponsors.

her reporting is changing the world. kudos to her and the entire democracy now! team.

The best part is his total inability to address the billions that went missing in Iraq after delivery from his Federal Reserve bank in New York.

Speaking as an inside media person, I think the interplay between Amy and Naomi was very strong and a network looking to improve ratings ought to sign them up immediately as Evening News anchors.