William Greider, a prominent political journalist and author, has been a reporter for more than 35 years for newspapers, magazines and television. Over the past two decades, he has persistently challenged mainstream thinking on economics.
For 17 years Greider was the National Affairs Editor at Rolling Stone magazine, where his investigation of the defense establishment began. He is a former assistant managing editor at the Washington Post, where he worked for fifteen years as a national correspondent, editor and columnist. While at the Post, he broke the story of how David Stockman, Ronald Reagan’s budget director, grew disillusioned with supply-side economics and the budget deficits that policy caused, which still burden the American economy.
He is the author of the national bestsellers One World, Ready or Not, Secrets of the Temple and Who Will Tell The People. In the award-winning Secrets of the Temple, he offered a critique of the Federal Reserve system. Greider has also served as a correspondent for six Frontline documentaries on PBS, including “Return to Beirut,” which won an Emmy in 1985.
Greider’s most recent book is The Soul of Capitalism: Opening Paths to A Moral Economy. In it, he untangles the systemic mysteries of American capitalism, details its destructive collisions with society and demonstrates how people can achieve decisive influence to reform the system’s structure and operating values.
Raised in Wyoming, Ohio, a suburb of Cincinnati, he graduated from Princeton University in 1958. He currently lives in Washington, DC.
The fall of Citigroup is a resonant political event--akin to the Republican Party's failure to win reform of Social Security--only this time the bell tolls for the Democratic Party. The creation of Citigroup as an all-purpose financial supermarket and too-big-to-fail banking marvel was very much the accomplishment of Clinton Democrats. They enacted the law in the late 1990s that authorized this megabank monstrosity, with coaching from Treasury Secretary Robert Rubin, Fed chairman Alan Greenspan and of course Sanford Weill, the creative genius who built Citi.
Now that this institution has slid into deep trouble and Rubin has been appointed emergency chairman to rescue it, Democrats inherit the stink. They made this mess possible. Will they now accept the meaning of Citigroup gone sour and begin to undo the damage? That is, undertake reform of the financial system in fundamental ways? I doubt it, though the message is obvious.
Just as the GOP dreamed for decades of dismantling Social Security, investment bankers campaigned for thirty years to repeal the Glass-Steagall Act, which separated commercial banking from its investment-house cousins. This was the New Deal achievement enacted in response to the double-dealing banking practices that contributed to the crash of 1929. Bankers pushed their depositors into buying the corporate stocks the bankers were hustling, among other malpractices. Wall Street hated the law but failed year after year to win repeal. The problem was always Democrats (since Republicans were sure supporters).
The news that the Iraqi government has banned Blackwater USA, the notorious mercenary firm, from operating in the country reveals another of the great fictions promoted by the Bush crowd in the course of this catastrophic war. The notion that Iraq is a sovereign nation in control of its own destiny.
The Bush Administration announced this myth several years ago after Iraqis adopted a Constitution and started electing a government. It was shrewd political propaganda--a reassuring sign of progress--but the claim was not true then or now. Major media and American political leaders, nevertheless, embraced the happy talk and pretended it was real.
(The Nation's own Jeremy Scahill has done pathbreaking reporting on Blackwater: See Bush's Shadow Army and Mercenary Jackpot, among others. Scahill also testified before the House Appropriations Subcommittee on Defense in May about the impact of private military contractors on the conduct of the war.)
Alan Greenspan has come back from the tomb of history to correct the record. He did not make any mistakes in his eighteen-year tenure as Federal Reserve chairman. He did not endorse the regressive Bush tax cuts of 2001 that pumped up the federal deficits and aggravated inequalities. He did not cause the housing bubble that is now in collapse. He did not ignore the stock market bubble that subsequently melted away and cost investors $6 trillion. He did not say the Iraq War is "largely about oil."
Check the record. These are all lies.
Greenspan's testimony endorsing the Bush tax cuts was extremely influential but now he wants to run away from it.
Now here is a Patriot Act everyone can get behind. It's called the Patriot Corporation of America Act and it rewards the companies that don't screw their employees and weaken the country by moving the jobs to China and elsewhere.
In these troubled times, doesn't that sound like common sense? Government policy presently works in opposite ways. It literally assists and subsidizes the disloyal free riders who boost their profits by dumping their obligations to the home country. It's called globalization. Establishment wisdom says there is nothing politicians can do about it.
But the bills introduced Thursday by three senators and seven representatives, all Democrats, can begin to reverse this political perversity. Don't expect a roll call anytime soon, but I think the governing principle is pivotally important.
House Speaker Nancy Pelosi has demonstrated admirable shrewdness in the fight she provoked with her own Democrats over approving new trade agreements for George W. Bush. She backed off.
The conflict is not entirely settled yet, but Pelosi wisely decided to defuse the intense anger in the Democratic caucus rather than try to bull through it. In pursuit of unity, she has shown respect for the new folks elected last fall and other rank-and-file Democrats determined to challenge the free-trade status quo and to change it. That is good for them. And good for her.
The surest sign Pelosi is moving in the right direction are the hostile rebukes from the Wall Street Journal and Washington Post. "Trade Double-Cross," said the headline on the Journal's editorial. "House Democrats go protectionist." This is nonsense, but typical of the Journal's slanderous style. Pelosi is demeaned as a pawn of organized labor and lefty extremists. Makes you wonder if the doctrinaire right-wing Journal could get any worse with Rupert Murdoch as the owner.