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Nov. 6, 2009
Rabbi Berel Wein: Choosing to hear
JWisdom.com Zero to 1/60th: How to Empower An Hour with Gavriel Aryeh Sande (7 minutes)
Caroline B. Glick The mullahs' big week
Suzanne Fields A Fallen Wall for Fallen Man
Nov. 5, 2009
The Kosher Gourmet: Three scrumptious -- but simple -- butternut squash dishes
JWisdom.com Hidden Hints: Unlocking Faith & Prayer with Rabbi Jay Yaacov Schwartz (10 minutes)
Nov. 4, 2009
Tom Hamburger and Kim Geiger: Should prayers be covered?
JWisdom.com When God played peacemaker With Rabbi Sroy Levitansky (5 minutes)
Nov. 3, 2009
Martin Peretz: Beware, Barack. Beware, Rahm. Beware, Axelrod
JWisdom.com Are you are closet idolater? With Sara Yoheved Rigler (10 minutes)
Nov. 2, 2009
Paul Greenberg: The Holocaust is now on Facebook
JWisdom.com Abraham's Strange Change With Rabbi Yitzchok Fingerer (5 minutes)
Oct. 30, 2009
Rabbi David Aaron: Secret to Immortality
Caroline B. Glick Silencing dissent in America
Oct. 29, 2009
Lini S. Kadaba: Do tactics avert flu or reduce humanity?
JWisdom.com We Must Revamp our Religious Vocabulary With Gavriel Aryeh Sanders ( 10 minutes)
Oct. 28, 2009
Rabbi Yonason Goldson: Atheists in Bubbleland
JWisdom.com Why what we wear impacts who we are With Rabbis Mordechai Becher, Menachem Golberger and Aliza Bulow ( 10 minutes)
Oct. 27, 2009
Paul Greenberg: The United Nations Is Outraged Again, Or: Department of Mideast Static
JWisdom.com The Science of Love With Rabbi Jonathan Rietti ( 7 minutes)
Oct. 26, 2009
The Jewish Ethicist by Rabbi Dr. Asher Meir: Damaging disclosures with a twist
JWisdom.com Wisdom and Wonks With Rabbi Eytan Feiner ( 7 minutes)
Oct. 23, 2009
Rabbi David Aaron: Are you ready for the ultimate pleasure?
JWisdom.com Watermark and oneness with Rabbi Sroy Levitansky ( 4 minutes)
Caroline B. Glick Stop using limited powers in a way that expands our enemies' advantages over us
Oct. 22, 2009
Steven Emerson: Terror Cases Share Desire to Kill Americans
JWisdom.com No More More Family Fights --- Really? By Sarah Chana Radcliffe ( 5 minutes)
Oct. 21, 2009
Tonya Alanez: Holocaust denier sues survivor, calling Auschwitz memoir 'vicious lies'
JWisdom.com Meditating Jewishly: A Panacea for Success by Sarah Yoheved Rigler ( 7 minutes)
Oct. 20, 2009
Dennis Prager: Obama and Dalai Lama: Why Israel Worries about U.S. President
JWisdom.com Abraham was not religious By Rabbi Yitzchok Fingerer ( 6 minutes)
Oct. 19, 2009
JWisdom.comWhy Good People Do Bad Things By Rabbi Eytan Feiner ( 7 minutes)
Oct. 16, 2009
Rabbi Yonason Goldson: The Perfect Number
JWisdom.com Hearing Voices By Rabbi Sroy Levitansky ( 5 minutes)
Caroline B. Glick How Turkey was lost
Oct. 15, 2009
Jeff Jacoby: Peace vs. the 'peace process'
JWisdom.com: Former MTV producer and stand-up comedian Rabbi Lawrence Hajioff: Taming a Control Freak (A VERY fast 15 minutes)
Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review Feb. 7, 2006 / 9 Shevat, 5766

Greenspan advising Britain? It's housing bubbles, deficits and potential meltdowns all over again

By Niall Ferguson


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http://www.JewishWorldReview.com | They really are the odd couple of economic policy. on one side of the atlantic is alan greenspan, who last week stepped down as chairman of the federal reserve after nearly two decades of mastering the financial universe. On the other is Gordon Brown, Britain's chancellor of the Exchequer, who last week was still chancellor of the Exchequer after nearly one decade of wishing he were prime minister.


Greenspan is revered today but, before he went to the Fed, he was regarded as something of a right-wing maverick. He was a disciple of Ayn Rand, whose theory of objectivism might best be summed up as the veneration of unfettered capitalism.


Brown had a rather different mentor in his formative years. He wrote his doctoral dissertation about that Red Clyde firebrand, James Maxton, who dedicated his life to the denigration of unfettered capitalism.


So there was something distinctly bizarre about the report last week that Greenspan is to become an unpaid "honorary" advisor to Britain's treasury.


One can only hope that when Greenspan arrives at No. 11 Downing St. he will not — as has been his wont for the last 19 years — mince his words.


AG: "Gordon, I have to level with you. The British economy is in a mess. And it's your fault. You inherited an economy that had been saved from ruin by Margaret Thatcher. You did one thing right, which was to make the Bank of England independent. But to call the rest of your time as chancellor a success would be — to coin a phrase — irrational exuberance.


"Nearly a third of the new jobs created in Britain since 1997 have been in the public sector. You've thrown billions at an inefficient, state-run health service. Meanwhile, British productivity lags behind not just the U.S. but even Italy."


GB: "Thanks, Alan old boy, but actually those aren't the things I wanted you to advise me about. There's another set of problems that are worrying me more. First, I'm a little nervous about the growth of public-sector borrowing. Second, there's been a housing bubble here, and I'm worried that as it deflates we're going to slide into recession. Our pension system seems to be heading for a meltdown, and our current account deficit refuses to go away. Sound familiar to you?"


AG: "OK, OK, so I'm not quite as big a genius as everyone was saying last Tuesday. Sure, I got the big things right. Inflation is lower and growth steadier than it was when I took over the Fed in 1987. I've got the American economy through not one, but two stock market crashes, to say nothing of a direct terrorist hit on downtown Manhattan.


"But my real legacy to my successor is a conundrum. I've spent the better part of the last two years raising interest rates but — I have to admit it — no one seems to have noticed. The dollar has weakened only a little, and long-term rates haven't budged at all. So our housing bubble is still going strong. And Americans aren't saving a cent. In fact, they just keep borrowing more and more against their homes, and then heading off to the shopping malls to spend it.


"I just don't get it. If quadrupling the cost of borrowing can't cool things down in the U.S., I don't know what can. Are long-term rates being artificially depressed by Asian central banks' purchases, or is everybody out there just dreaming that inflation is no longer something they need to worry about because of globalization?


"One thing's for sure, I breathed a sigh of relief when I walked out of my office for the last time. Come to think of it, I guess that's the way you'll feel when you finally get to move next door into No. 10."

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Niall Ferguson is a professor of history at Harvard University. He is the author of "Empire" (Basic Books, 2003) and "Colossus" (Penguin, 2004). Comment by clicking here.

01/31/06: Missing the Cold War
01/24/06: It's a sick, Thick World
01/17/06: Tomorrow's world war today
01/03/06: Scotland, it's over, but keep the accents
12/20/05: History, democracy and Iraq
12/20/05: History, democracy and Iraq
11/22/05: Ghost of Napoleon haunts Tony Blair
11/22/05: Can it happen in Britain too?
11/15/05: Red plus blue equals purple
11/10/05: The fires of disintegration
11/01/05: Triumph of an über-wonk

© 2006, Los Angeles Times Distributed by Los Angeles Times Syndicate

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