These people have no shame. After years of "benign neglect" by Greenspan and, since last year, Bernanke at the helm of the Federal Reserve, they wake up. How likely is this to be non-partisan?
In the past 6 years, the Bush administration oversaw the creation of massive, record, budget deficits (despite inheriting comfortable surpluses from Clinton) with barely a peep from them. Tax cuts to the rich were not opposed - indeed, they were encouraged. Unrestrained spending was similarly not deemed of criticism.
But now, in January 2007, with a Democratic Congress, they suddenly wake up and worry about deficits!
Here's what Bernanke just had to say to the Senate:
Bernanke Warns About Deficit, Higher Entitlement Spending
WASHINGTON -- Federal Reserve Chairman Ben Bernanke on Thursday warned that the recent improvement in the U.S. budget deficit is simply "the calm before the storm" and that higher entitlement spending could cripple the economy is action isn't taken soon.
"If early and meaningful action is not taken" in reforming programs like Social Security and Medicare, then "the U.S. economy could be seriously weakened, with future generations bearing much of the cost," Mr. Bernanke said in prepared testimony to the Senate Budget Committee.
If you've read my economic articles over at the European Tribune, you may remember that I traduce "reform" in a simple way: it has only one meaning for these people: lower wages, fewer labor rights, less regulation of corporations and lower taxes.
So, suddenly, again, budget deficits are a problem, entitlements are a problem, "reform" is necessary, and budget cuts (applying, of course, only to spending geared towards the middle classes) are required.
The bloated military budget, the absurd waste of the Iraq war do not deserve a mention of course. Pork-laden, corporate subsidising budgets did not deserve criticism, but new spending by Democrats is worth the wrath of the Fed.
Who the fuck are they kidding?
UPDATE: A diary on the same topic was posted while I was writing this: here it is, by Hypnosis 101. The tone and conclusions are similar to mine, so recommend that one.