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Profile: Alan Greenspan

Alan Greenspan was a participant or observer in the following events:

Ayn Rand in her youth.Ayn Rand in her youth. [Source: Heritage American]“Objectivist” philosopher and burgeoning novelist Ayn Rand writes admiringly of one of her heroes, serial killer William Edward Hickman. She admires Hickman’s stated credo, “What is good for me is right.” In her journals, Rand writes in response, “The best and strongest expression of a real man’s psychology I have heard.” Rand is planning a novel, The Little Street, to feature a character based on Hickman, who she considers her “ideal man.” In her journals, Rand writes that Hickman “is born with a wonderful, free, light consciousness—[resulting from] the absolute lack of social instinct or herd feeling. He does not understand, because he has no organ for understanding, the necessity, meaning, or importance of other people.… Other people do not exist for him and he does not understand why they should.” Later in her journals, she clarifies her idealization of Hickman: “[My hero is] very far from him, of course. The outside of Hickman, but not the inside. Much deeper and much more. A Hickman with a purpose. And without the degeneracy. It is more exact to say that the model is not Hickman, but what Hickman suggested to me.” (Rand will never complete The Little Street.)
Torturer and Killer - According to author and biographer Michael Prescott, in 1928, Hickman is one of the most notorious criminals in America, a forger, armed robber, child kidnapper, and multiple murderer. As a child, he enjoyed torturing and killing small animals. As a young man, he engaged in a crime spree beginning in the Midwest and ending in California, robbing gas stations and drug stores, allegedly murdering a girl in Milwaukee, and murdering the grandfather of his crime partner in Pasadena. That partner later told police that Hickman often talked about his desire to kill and dismember someone someday. In 1927, he kidnapped a 12-year-old girl, Marion Parker, from her school and began taunting her wealthy father with ransom notes. (He called himself “a master mind” and “not a common crook” in those notes, and signed himself “The Fox,” writing, “Fox is my name, very sly you know.” After days of exchanging letters, Hickman accused the father of lying about his intention of paying the ransom and strangled Marion Parker with a towel. After she was dead, he dismembered the body with a pocket knife, wrapped up the separate remains, packed the remains into a car, and drove to meet the father, tossing body parts out of the car along the way. The father, believing his daughter to still be alive, gave $1,500 to Hickman. In return, Hickman threw the girl’s head and upper torso out of the car at the father’s feet and sped off. Hickman fled to Oregon, where he was arrested. He quickly confessed to the murder, at least one more murder, and the robberies. After failing to pin his crimes on another man (presumably his former partner), and unsuccessfully claiming his innocence by reason of insanity, Hickman will be executed at San Quentin Prison. Prescott will write of Hickman, “Hickman reportedly ‘died yellow’—he was dragged, trembling and fainting, to his execution, his courtroom bravado having given way at last.”
Idealizing a Sociopath? - In 2005, Prescott will ask if Rand’s “ideal man” was, in reality, a criminal sociopath, and if so, what that says of Rand’s own values and judgment. In 1928, Prescott notes, Rand is still in her twenties and heavily influenced by the egocentric philosophies of Friedrich Nietzsche. Rand writes of Hickman that he represents “the amazing picture of a man with no regard whatsoever for all that a society holds sacred, and with a consciousness all his own. A man who really stands alone, in action and in soul.… Other people do not exist for him, and he does not see why they should.” Hickman, she writes, is “a brilliant, unusual, exceptional boy” filled with “immense, explicit egotism.” (Some newspaper writers at the time compare Hickman to Nietzche’s “Superman,” writing that Hickman twisted Nietzsche’s teachings to suit his own ends.) Her defenders might argue, Prescott will write, that as Rand matures, she will grow out of her fascination with Nietzsche, and, by extension, Hickman, and evolve a more rational outlook. [Michael Prescott, 2005; AlterNet, 2/26/2010]
Anti-Social, Amoral Characters in Later Books - However, Prescott uses quotes from Rand’s later novels to show her ongoing fascination with amoral, self-centered characters and the philosophies that inform their worldviews. She will write in her notes for The Fountainhead: “One puts oneself above all and crushes everything in one’s way to get the best for oneself. Fine!” Her notes on her novel’s hero, Howard Roark, say that Roark “has learned long ago, with his first consciousness, two things which dominate his entire attitude toward life: his own superiority and the utter worthlessness of the world.… He was born without the ability to consider others.” In the original version of her first novel We the Living, the character Kira, whom Prescott characterizes as “Rand’s stand-in,” says, “What are your masses [of humanity] but mud to be ground underfoot, fuel to be burned for those who deserve it?” Prescott notes that the statement will be altered in subsequent publications. In her journals, Rand will write that man “is man only so long as he functions in accordance with the nature of a rational being. When he chooses to function otherwise, he is no longer man. There is no proper name for the thing which he then becomes.… When a man chooses to act in a sub-human manner, it is no longer proper for him to survive nor to be happy.” In her longest novel, 1957’s Atlas Shrugged, she will refer to a crowd of poor and starving people as “savages,” “refuse,” “inanimate objects,” and “imitations of living beings,” all patently beneath the heroes and heroines of her story. In the novel, a wealthy citizen striking against progressive taxation causes a train crash, and Rand will make it clear that the people who die in the crash deserve it because they supported the taxation policies that triggered the attack. Rand will continue to write admiringly of the Nietzschean concept of the “Superman” throughout her career. Columnist Johann Hari will write: “Her heroes are a cocktail of extreme self-love and extreme self-pity: They insist they need no one, yet they spend all their time fuming that the masses don’t bow down before their manifest superiority.” [Michael Prescott, 2005; Slate, 11/2/2009; AlterNet, 2/26/2010]
Rand Admired by Many Modern Republicans - In 2010, liberal columnist Mark Ames will go farther than either Prescott or Hari and label Rand “a textbook sociopath,” adding: “In her notebooks Ayn Rand worshiped a notorious serial murderer-dismemberer, and used this killer as an early model for the type of ‘ideal man’ she promoted in her more famous books. These ideas were later picked up on and put into play by major right-wing figures of the past half decade, including the key architects of America’s most recent economic catastrophe—former Fed Chair Alan Greenspan and SEC Commissioner Chris Cox—along with other notable right-wing Republicans such as Supreme Court Justice Clarence Thomas, Rush Limbaugh, and South Carolina Gov. Mark Sanford.” Ames will note that many politicians aligned with the “tea party” movement, such as Representatives Paul Ryan (R-WI) and Michele Bachmann (R-MN) are outspoken Rand admirers. [AlterNet, 2/26/2010] Hari will ask: “What I do find incomprehensible is that there are people—large numbers of people—who see her writing not as psychopathy but as philosophy, and urge us to follow her. Why?” [Slate, 11/2/2009]

Entity Tags: Friedrich Nietzsche, Christopher Cox, Alan Greenspan, Ayn Rand, Clarence Thomas, William Edward Hickman, Rush Limbaugh, Mark Ames, Paul Ryan, Marion Parker, Marshall Clement (“Mark”) Sanford, Jr, Michele Bachmann, Michael Prescott, Johann Hari

Timeline Tags: Domestic Propaganda

Alexis Debat.Alexis Debat. [Source: PBS]Conservative security consultant Alexis Debat, a former French military official often used by ABC News and other US media outlets, admits that he published an interview with Democratic senator and presidential candidate Barack Obama that he never conducted. In the interview, Obama supposedly said that Iraq was “already a defeat for America” and that the US has “wasted thousands of lives.” Debat claims that he signed off on the article, published in the Summer 2007 issue of the French magazine Politique Internationale, but did not write it, instead farming it out to a freelance journalist, Rob Sherman, and having it published under Debat’s name. Sherman concocted the interview, says Debat, who says both he and Obama are victims. [Washington Post, 9/13/2007] “Rob Sherman asked me to remove his name from the interview, and my mistake was to put my name on it,” says Debat. [ABC News, 9/12/2007] “I was scammed. I was very, very stupid. I made a huge mistake in signing that article and not checking his credentials.” [Washington Post, 9/13/2007]
Greenspan: No Such Interview - Former Federal Reserve chairman Alan Greenspan said on September 7 that an interview with him, conducted by Debat and published in the same magazine, also never happened. [Rue 89, 9/7/2007]
Many US Officials Also Not Interviewed - Hours after Obama’s campaign disavowed the Debat interview, numerous other US politicians and business figures also say they were victimized by fake interviews supposedly conducted by Debat. Those figures include former President Bill Clinton, Speaker of the House Nancy Pelosi, former Secretary of State Colin Powell, New York mayor Michael Bloomberg, Microsoft founder Bill Gates, and former UN Secretary-General Kofi Annan. Politique Internationale editor Patrick Wajsman says “This guy is just sick,” and says his magazine is removing all of Debat’s work from its Web site. Annan’s deputy communications director, Stephane Dujarric, says he warned the magazine that the Annan interview was a fabrication back in June 2005, and said that if the magazine published it—which it did—Annan’s office would “denouce the interview as a fake. This was not some obscure guy. This was the sitting secretary-general of the UN, and the magazine was told it was a fake.” Nevertheless, ABC News and Politique Internationale continued to rely on Debat as a source of information and a regular contributor of “interviews” with a variety of influential Americans. The magazine published a second interview with Annan earlier this year, but it, too, was a fabrication, apparently culled from a speech Annan gave at Princeton University. Wajsman calls the publications of the Annan interviews either a “technical” error or a misunderstanding. “I was a victim of this man. I had no reason to suspect someone like him could lie,” Wajsman says. So why did Wajsman continue to rely on Debat after the UN protests? “Everybody can be trusted once,” Wajsman says. “He seemed to be well-connected in Washington, working for ABC and the Nixon Center.” Debat admits he never interviewed any of the above-named figures, but explains: “The magazine asked me to send questions. They got the answers, and then I edited and translated them and put my name on it.” Wajsman retorts, “That is an outright lie.” [ABC News, 9/13/2007]
Debat Frequent Source of Unreliable Information on Iran - Debat has been a frequent source of incendiary information and commentary about the US’s need to invade Iran; on September 2, The Times of London published commentary from Debat in which he claimed the US is planning massive, systematic air strikes against Iran, and called it a “very legitimate strategic calculus” (see Late August, 2007). Recent reports have claimed that an organized campaign to insert reports and commentary in the US and European media drumming up support for a US attack against Iran is being orchestrated by the office of Vice President Dick Cheney. [Attytood, 9/13/2007]
Debat Falsified University Record - Debat’s other reports are now being scrutinized for possible fabrications. ABC News fired Debat in June 2007 after finding that Debat lied about his background: Debat claimed he has a Ph.D from the Sorbonne, when in fact he does not. (Debat claims he earned his Ph.D, but the university hasn’t granted him the degree because of an “administrative issue.”) ABC’s chief investigative reporter Brian Ross, who has worked closely with Debat and has high praise for his work, now says: “I was angry with him because it called into question, of course, everything he had done. He could never satisfy us that he had the Ph.D.… I was very upset.” Debat has specialized in reports on terrorism and national security for the last six years. ABC spokesman Jeffrey Schnieder says that while it has so far verified all of Debat’s reporting: “There are some very serious questions about exactly who he is and how he works. We want nothing more than to get to the absolute bottom of that.” Debat directed the terrorism and national security program from Washington’s Nixon Center, a conservative think tank set up by former President Richard Nixon. He wrote for the conservative political journal National Interest, which is chaired by Henry Kissinger. Debat has now resigned both positions. His position as a regular contributor to Politique Internationale has also probably ended, Debat admits. [Washington Post, 9/13/2007]
'Never Spoke with Your Alexis What's-His-Name' - The French magazine Rue 89 exposed Debat earlier this week, calling him a “strange character” and questioning his credibility. It interviewed the purported freelance journalist, Rob Sherman, who is not a journalist but a radio talk show host in Chicago; according to Sherman, he “never spoke with your Alexis what’s-his-name.” It also reports that Debat once claimed to have earned a Ph.D from Edenvale University, in Britain, an institution that does not exist. He has also claimed to be the director of the scientific committee for the Institut Montaigne in Paris, which denies Debat ever worked with it; he has appeared on French television news claiming to be a former social worker and to be a former French commando who fought against Serbian soldiers in Yugoslavia, claims which have not been confirmed. As for his service in the French military, the French government confirms that Debat indeed held a desk job in its Ministry of Defense for a few months. [Rue 89, 9/7/2007]
'Lone Wolf' or Disinformation Source? - Philadelphia Daily News journalist Will Bunch observes: “[T]here are two radically different ways to look at this scandal. Either Debat is a lone wolf, a deluded self-aggrandizer whose main agenda is promoting himself. Or he is acting in his role at the Nixon Center as a conduit, spreading information and occasional disinformation at the behest of others.” [Attytood, 9/13/2007]
ABC News Also to Blame - Reporter Laura Rozen, a regular contributor to numerous high-end US media outlets such as the Boston Globe and Mother Jones, is unforgiving of both Debat and ABC News: “My own feeling as primarily a print world reporter… is that it is deeply problematic for a news organization to have a paid source/consultant to sometimes put on the reporter hat and act as the reporter too.… Seriously, imagine if a New York Times reporter put an ex-NSC or CIA operative on the payroll for about $2,000 to $4,000 a month as a source, cited in articles as a source, and then sometimes let him or her report news stories with a byline, without glaringly indicating to readers what was going on. But this is what ABC was doing with Debat. ABC must have known they were stretching the rules on this one. For instance, their consultant Richard Clarke is never presented as the reporter. But ABC changed the rules in the Debat case, presumably because he was bringing them such sexy scoops, that they loved flacking at the time. Now they insist the scoops were solid, but Debat misrepresented his credentials. They’re blameless.… [D]id ABC bend the rules by paying a source who also served as their reporter while having a full time appointment elsewhere, smoothing over any complications by calling him an all purpose ‘consultant?’ How much did Brian Ross approve the unusual arrangement and independently verify the information Debat was bringing from the dark corners of Pakistan? [If] Debat faked interviews for a French journal, what was to keep him from faking interviews that informed multiple stories for ABC? I find it implausible that ABC has independently re-reported all that stuff so quickly and determined it’s kosher.” [Laura Rozen, 9/12/2007]

Entity Tags: Politique Internationale, Philadelphia Daily News, Richard (“Dick”) Cheney, Richard A. Clarke, William Jefferson (“Bill”) Clinton, Will Bunch, Stephane Dujarric, Patrick Wajsman, William Gates, Nixon Center, Richard M. Nixon, Michael R. Bloomberg, Brian Ross, Barack Obama, ABC News, Alexis Debat, Alan Greenspan, French Ministry of Defense, Colin Powell, Nancy Pelosi, Laura Rozen, London Times, Jeffrey Schnieder, Henry A. Kissinger, Kofi Annan

Timeline Tags: US confrontation with Iran, Iraq under US Occupation, Domestic Propaganda

Alan Greenspan, the former head of the US Federal Reserve, charges in his newly published memoir that the US invasion of Iraq was largely driven by the Bush administration’s desire to control Iraq’s oil reserves. Greenspan says in his book The Age of Turbulence: Adventures in a New World, that he is “saddened that it is politically inconvenient to acknowledge what everyone knows—the Iraq war is largely about oil.” [Agence France-Presse, 9/16/2007; Sunday Times (London), 9/16/2007] In subsequent interviews with the press, though, Greenspan has backed off of his assertion a bit. Iraq’s oil was “not the administration’s motive,” he now says, and goes on to say that the overthrow of Saddam Hussein was essential for the US’s economic stability. “I’m just saying that if somebody asked me, ‘Are we fortunate in taking out Saddam?’ I would say it was essential.” He adds, “I have never heard them basically say, ‘We’ve got to protect the oil supplies of the world,’ but that would have been my motive.” He says he made that argument to White House officials, and one of them told him, “Well, unfortunately, we can’t talk about oil.” [Washington Post, 9/17/2007] Greenspan says he advocated the overthrow of Saddam Hussein, not because of weapons of mass destruction, but because he was convinced Hussein wanted to control the Strait of Hormuz, through which much of the world’s oil passes. That would enable Hussein to threaten the US and its allies, a situation Greenspan found untenable. [Columbia Journalism Review, 9/17/2007] “Iraq was a far greater threat than Iran to the world scene,” he says. [New York Times, 9/17/2007] Greenspan says he believed Hussein should go, but not necessarily through military action. “I wasn’t arguing for war per se. [But] to take [Hussein] out, in my judgment, it was something important for the West to do and essential, but I never saw Plan B”—an alternative to war. In August 2002, seven months before the invasion of Iraq, a National Security Presidential Directive signed by Bush stated as one of the objectives of the invasion was “to minimize disruption in international oil markets.” Greenspan says, “If Saddam Hussein had been head of Iraq and there was no oil under those sands, our response to him would not have been as strong as it was in the first Gulf War. And the second Gulf War is an extension of the first. My view is that Saddam, looking over his 30-year history, very clearly was giving evidence of moving towards controlling the Straits of Hormuz, where there are 17, 18, 19 million barrels a day” passing through. Disruption of even 3 to 4 million barrels a day could have translated into oil prices as high as $120 a barrel, Greenspan now says, and that would have triggered “chaos” in the global economy. Ousting Hussein achieved the purpose of “making certain that the existing system [of oil markets] continues to work, frankly, until we find other [energy supplies], which ultimately we will.” [Washington Post, 9/17/2007]

Entity Tags: Bush administration (43), George W. Bush, US Federal Reserve, Alan Greenspan, Saddam Hussein

Timeline Tags: Events Leading to Iraq Invasion

“The worst economic turmoil since the Great Depression is not a natural phenomenon but a man-made disaster in which we all played a part,” says Guardian City editor Julia Finch, who lists individuals who led the world into its current economic crisis (see June 2008). These individuals include:
bullet Alan Greenspan, US Federal Reserve chairman, 1987-2006: “[B]lamed for allowing the housing bubble to develop as a result of his low interest rates and lack of regulation in mortgage lending. Backed sub-prime lending; urged homebuyers to swap fixed-rate mortgages for variable rate deals, leaving borrowers unable to pay when interest rates rose. Defended the booming derivatives business, which barely existed when he took over the Fed, but which mushroomed from $100tn in 2002 to more than $500tn five years later.”
bullet Mervyn King, governor of the Bank of England: “His ambition was that monetary policy decision-making should become ‘boring.’”
bullet Bill Clinton, former US president: “Beefed up the 1977 Community Reinvestment Act to force mortgage lenders to relax their rules to allow more socially disadvantaged borrowers to qualify for home loans. Repealed the 1999 Glass-Steagall Act, prompting the era of the superbank; the year before the repeal, sub-prime loans were just 5 percent of all mortgage lending. By the time the credit crunch blew up it was approaching 30 percent.” [Guardian, 1/26/2009]

Entity Tags: Mervyn King, William Jefferson (“Bill”) Clinton, Alan Greenspan, The Guardian, Julia Finch

Timeline Tags: Global Economic Crises

Representative Michele Bachmann (R-MN) tells a CBS News viewing audience that the Obama administration is lying when it says the US government would default on its loans if Congress refuses to raise the US debt ceiling. Bachmann accuses the Obama administration of using “scare tactics” to push for a debt-ceiling increase. Bachmann has said previously that Congress should not raise the debt ceiling (see April 30, 2011). Treasury Secretary Timothy Geithner and other Obama adminstration members, along with a bevy of economists and financial leaders including Federal Reserve Chairman Ben Bernanke and former Chairman Alan Greenspan, have urged Congress to raise the debt ceiling by August 2 to avoid the US defaulting on its outstanding loans and engendering what many call an economic catastrophe (see May 20, 2011). The US Treasury has used accounting steps, what it calls “extraordinary measures,” to avoid default since the nation reached its debt limit on May 16. The final deadline for the US to raise its debt limit is August 2. Bernanke and others have said that even a brief US default could cause an uproar in the global economy. But Bachmann says she has “no intention” of voting for a hike to the limit, saying instead: “It isn’t true that the government would default on its debt. Because, very simply, the Treasury secretary can pay the interest on the debt first, and then, from there, we have to just prioritize our spending.” Face the Nation host Bob Schieffer asks Bachman: “Experts inside and outside the government say that, if we don’t raise the debt ceiling, we face the United States having to default on its financial obligations. Are you saying these are scare tactics? Or are you saying that’s not true? How can you say that?” Bachmann replies: “It is scare tactics. Because, Bob, the interest on the debt isn’t any more than 10 percent of what we’re taking in. In fact, it’s less than that. And so the Treasury secretary can very simply pay the interest on the debt first, then we’re not in default.… What it means is we have to seriously prioritize. It would be very tough love. But, I have been here long enough in Washington, DC, that I’ve seen smoke and mirrors time and time again.” Bachmann says if elected president, she would end the nation’s deficit problem by making extreme cuts in spending. “I would begin very seriously by cutting spending,” she says. “President Obama, again, he spent a trillion dollar stimulus program that’s been an abject failure. We need to seriously cut back on spending first and foremost, and then prioritize.” Her only recommendation to handle the job crisis is to cut corporate tax rates; she explains: “We have one of the highest corporate tax rates in the world; we need to drop that significantly, so that we have a pro-business, pro-job creation environment. So if we cut back the corporate tax rate, if we would zero out the capital gains rates, allow for 100 percent expensing when a job creator buys equipment for their business, that would go a long way toward job creators recognizing that this is a pro-business environment.” She says that the administration’s health care package, which she calls “Obamacare,” will cost “800,000 jobs.” Schieffer says, “That is data that other people would question,” and she retorts by saying the Congressional Budget Office (CBO), not she herself, has made that claim. A recent analysis by the St. Petersburg Times’s PolitiFact showed that Bachmann’s claim of “Obamacare” costing 800,000 jobs is an “exaggeration” of the CBO’s figures, and is “misleading.” Bachmann dodges questions about the elimination of the minimum wage, which she has advocated since 2005, and the elimination of farm subsidies, from which she and her family have benefited. [CBS News, 6/26/2011]

Entity Tags: CBS News, Alan Greenspan, Barack Obama, Bob Schieffer, US Department of the Treasury, PolitiFact (.org ), Congressional Budget Office, Ben Bernanke, Obama administration, Michele Bachmann, Timothy Geithner

Timeline Tags: Global Economic Crises

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