Robert Caro Quotes

In 2001, the nation had a huge budget surplus from the Clinton administration and there was much political debate over economic policy. President Bush wanted to have a very large tax cut. Greenspan had testified that given the very large surplus, the nation could afford a tax cut and not resume a deficit. However, the tax cut did not have the stimulus effect that the President had hoped, and the surplus was used up and exceeded. To make matters worse, September 11 began the War on Terror which required extensive additional government spending. The nation went from the largest surplus in American history to the largest deficit in American History in the next 4 years. Greenspan did something that is very rare in Washington. He publicly admitted error.

He was the leader of the team that followed to invading troops into Iraq to find the nuclear and other WMDs that the CIA had said were deployed and ready to be used. They found none. Worse for the CIA, there were not even any development programs ongoing. The CIA Director was furious with Kay for admitting the CIA gross error. Kay was given minor assignments thereafter even though he was the best WMD analyst we had.

The United States along with France, Britain and other Western nations maintained an arms embargo against both sides of the Spanish Civil War. However, Italy and Germany, not only shipped arms to the Nationalists but sent planes and crews to fight against the Republicans. Bowers warned that the freely elected Republican government would not be able to hold out against the Fascist attacks of two outside countries and the nationalists in Spain. Further that the arms embargo would force the Republicans politically into the hands of the Russians who became the only possible sourced of arms. The American right wing was opposed to involvement in such foreign disputes. After the Fascists took over Spain, the lesson was not lost on Roosevelt in terms of arms to Great Britain when WWII broke out.

This is a very common error made by politicians, especially ideologues.

He is absolutely right, but unfortunately made this statement several years after he served as the Fed Chairman. He never made a statement like this when he and his colleagues made their policies based on their economic forecasting. Central bankers have generally felt that one of their jobs was to give the people confidence in the nation’s banking system and economy and the admission that much policy making was based on “coin toss” forecasting.

He was the Station Chief During the Blackhawk Down Catastrophe.