You've got to hand it to Harry Reid. Earlier this evening, he called Alan Greenspan
"one of the biggest political hacks we have here in Washington." And he's right: As I noted last night, Mr. Greenspan has discretely used the power of the Federal Reserve several times over the past 4 years to make personal statements that seem designed only to further George W. Bush's political agenda. Look at Mr. Greenspan's "personal" statements to Congress in the past 4 years:
Pushing for Tax Cuts Immediately after Bush Inauguration
Again pushing for Bush Tax Cuts Early in 2001
Explaining in early 2004 that "the U.S. economy appears to have made the transition from a period of subpar growth to one of more vigorous expansion"
Blaming Poor Economy on "Attacks of September 11"
Again Pushing for Bush Tax Cuts Early in 2001
There is simply no doubt this guy is a political hack. More on the flip
These sorts of political endorsements by Mr. Greenspan have often contradicted themselves since the Federal Reserve Chairman supported the tax cuts because of the need to cut the surplus and now supports Social Security privatization on the ground that deficit reduction is urgent. They obviously also undermine confidence in the Federal Reserve Board by making it seem to be just another political arm of the Administration.
There has never been any real doubt about the political motivation behind these statements, but if there ever was, some recent poll numbers make their political nature even more clear. Mr. Greenspan has made headlines in each of the past two days about the impending budget crisis and suggested Social Security privitazation and Middle Class Tax Hikes -- two Administration priorities -- as potential solutions. Mr. Greenspan has almost certainly been chosen as the messanger on these issues with some recent poll numbers in mind: Buried in the recent Pew Poll was this frightening finding. By a margin of 49-20, Americans said they "mostly trust" Alan Greenspan on questions about Social Security. Scary and certainly not coincidental.
Can there be any question that Mr. Greenspan's recent prominence speaking "for himself only" is related to these numbers? Can there be any doubt that Mr. Greenspan is a "partisan hack"? Harry Reid is speaking truth to hackery. Give'em hell, Harry.