-Caveat Lector- ROBERT RUBIN'S ROLE IN THE RECOVERY Last week, financial markets paid Treasury Secretary Bob Rubin the highest complement they could: they crashed on the announcement of his resignation. The markets were acknowledging that Rubin deserves much of the credit for the economic expansion and the enormous wealth it has generated for millions of Americans. Yet, ironically, it is not for anything he has really done, but rather for the bad things that probably would have happened had he not been there to stop them. Clinton came into office hoping to be another LBJ, with plans for big spending programs galore. But Rubin convinced him that financial markets were very nervous about this and needed reassurance. So instead of proposing another Great Society, Clinton proposed a big deficit reduction plan. Although the plan was faulty, it convinced markets that Clinton was not another Jimmy Carter, and would not unleash the inflation genie. Rubin also played a critical role in getting Republican Alan Greenspan reappointed as Federal Reserve chairman in 1996, and has consistently protected him from administration criticism. This has allowed Greenspan to manage monetary policy for the good of the country. The result has been the near elimination of inflation and the lowest interest rates and unemployment in a generation (see figure http://www.ncpa.org/pd/gif/pd051799a.gif). Rubin's replacement, Deputy Secretary Lawrence Summers, has been a professor of economics at Harvard University, but will not have the standing as Rubin has at the White House, nor the stature Rubin has in financial markets. If, for any reason, there is an economic slowdown or a financial crisis, it could bring out Clinton's bad big government instincts. Only this time Rubin won't be there to head them off. Source: Bruce Bartlett, senior fellow, National Center for Policy Analysis, May 17, 1999. For text http://www.ncpa.org/oped/bartlett.html DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance—not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
