The New York Times > Business > Your Money > Economic View: Deficits May Be Wearing Thin at the Fed

Does it make sense to try and read tea leaves of the Administration like they are manna from above? More importantly, the problem is why is the US having these problems and what are we doing about them? Sure the Chinese have fought to keep their currency tied to the dollar, but why? More importantly what can we do about it? IMHO, there is nothing that the US can do in the next decade to stabilize the banking system in China so what's the next option? What about keeping our own financial house in order?

The Fed is extremely influential in all this. It is a strength and weakness that Greenspan is so politically astute. He has been able to be influential, and at the same time been obscure in his comments. With the Bushies back, he has ruined much of his reputation by staying so obscure and not stressing to the Administration the mopunting problem. The US has a serious problem economically and the one that is suppossed to be keeping an eye on things is watching the wrong gauge.