David Stockman writing in the New York Times | TigerDroppings.com

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I B Freeman
Member since Oct 2009
5973 posts

David Stockman writing in the New York Times



It is funny to see the different takes different media have expressed about this Stockman column. The Huffington Post says Stockman says "George W. Bush's Policies Bankrupt the Country". Bussiness Insider says "We've Been Lied Too".

The truth is that both parties are too blame and interestingly Stockman says Milton Friedman is also to blame. (In Friedman's defense--he endorsed leaving the gold standard but only if the dollar was allowed to be commoditized with no control over interest rates which as we see did not happen.)

A powerful letter we all should read from David Stockman

LINK

Also--a gallery of villians and heroes LINK



This post was edited on 3/31 at 10:09 pm



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I B Freeman
Member since Oct 2009
5973 posts

re: David Stockman writing in the New York Times


An exert but please read it all:

quote:

The future is bleak. The greatest construction boom in recorded history — China’s money dump on infrastructure over the last 15 years — is slowing. Brazil, India, Russia, Turkey, South Africa and all the other growing middle-income nations cannot make up for the shortfall in demand. The American machinery of monetary and fiscal stimulus has reached its limits. Japan is sinking into old-age bankruptcy and Europe into welfare-state senescence. The new rulers enthroned in Beijing last year know that after two decades of wild lending, speculation and building, even they will face a day of reckoning, too.

THE state-wreck ahead is a far cry from the “Great Moderation” proclaimed in 2004 by Mr. Bernanke, who predicted that prosperity would be everlasting because the Fed had tamed the business cycle and, as late as March 2007, testified that the impact of the subprime meltdown “seems likely to be contained.” Instead of moderation, what’s at hand is a Great Deformation, arising from a rogue central bank that has abetted the Wall Street casino, crucified savers on a cross of zero interest rates and fueled a global commodity bubble that erodes Main Street living standards through rising food and energy prices — a form of inflation that the Fed fecklessly disregards in calculating inflation.

These policies have brought America to an end-stage metastasis. The way out would be so radical it can’t happen. It would necessitate a sweeping divorce of the state and the market economy. It would require a renunciation of crony capitalism and its first cousin: Keynesian economics in all its forms. The state would need to get out of the business of imperial hubris, economic uplift and social insurance and shift its focus to managing and financing an effective, affordable, means-tested safety net.

All this would require drastic deflation of the realm of politics and the abolition of incumbency itself, because the machinery of the state and the machinery of re-election have become conterminous. Prying them apart would entail sweeping constitutional surgery: amendments to give the president and members of Congress a single six-year term, with no re-election; providing 100 percent public financing for candidates; strictly limiting the duration of campaigns (say, to eight weeks); and prohibiting, for life, lobbying by anyone who has been on a legislative or executive payroll. It would also require overturning Citizens United and mandating that Congress pass a balanced budget, or face an automatic sequester of spending.

It would also require purging the corrosive financialization that has turned the economy into a giant casino since the 1970s. This would mean putting the great Wall Street banks out in the cold to compete as at-risk free enterprises, without access to cheap Fed loans or deposit insurance. Banks would be able to take deposits and make commercial loans, but be banned from trading, underwriting and money management in all its forms.

It would require, finally, benching the Fed’s central planners, and restoring the central bank’s original mission: to provide liquidity in times of crisis but never to buy government debt or try to micromanage the economy. Getting the Fed out of the financial markets is the only way to put free markets and genuine wealth creation back into capitalism.


That, of course, will never happen because there are trillions of dollars of assets, from Shanghai skyscrapers to Fortune 1000 stocks to the latest housing market “recovery,” artificially propped up by the Fed’s interest-rate repression. The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest bubble pops, there will be nothing to stop the collapse. If this sounds like advice to get out of the markets and hide out in cash, it is.






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MoreOrLes
LSU Fan
Member since Nov 2008
17249 posts

re: David Stockman writing in the New York Times


Too many with the cavalier attitude that "It can't happen"

Food storage
Medicine
Ammo
Gold

The way of the future IMO






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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
25459 posts

re: David Stockman writing in the New York Times


Wow, great read.

quote:

Notwithstanding Mr. Bernanke’s assurances about eventually, gradually making a smooth exit, the Fed is domiciled in a monetary prison of its own making.


I just don't see the Fed's exit from the bond market being a "smooth exit". As soon as bonds get cheap again, look out.



This post was edited on 3/31 at 10:27 pm


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Enfuego
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NOLA
Member since Mar 2009
8266 posts

re: David Stockman writing in the New York Times


Very good read.


Thanks for posting.






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ehidal1
Missouri Fan
Chief Boot Knocka
Member since Dec 2007
19015 posts

re: David Stockman writing in the New York Times


Good read





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CherryGarciaMan
Sugar Magnolia
Member since Aug 2012
1771 posts

re: David Stockman writing in the New York Times


So.......



Ron Paul was right.






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RogerTheShrubber
LSU Fan
Juneau, AK
Member since Jan 2009
93304 posts

re: David Stockman writing in the New York Times


quote:



Ron Paul was right.



This may be said often over the next decade.






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Tiguar
Auburn Fan
Mobile
Member since Mar 2012
7442 posts

re: David Stockman writing in the New York Times








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ChineseBandit58
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west of the pines
Member since Aug 2005
10089 posts
 Online 

re: David Stockman writing in the New York Times


quote:

The United States is broke — fiscally, morally, intellectually

This.

I have seen it happen in my lifetime. From a shining city on the hill to a morass of narcissism.






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EST
LSU Fan
Investigating
Member since Oct 2003
14621 posts

re: David Stockman writing in the New York Times


LINK

podcast featuring David Stockman






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NC_Tigah
LSU Fan
Member since Sep 2003
53628 posts

re: David Stockman writing in the New York Times


quote:

David Stockman writing in the New York Times

I guess I'm relatively alone here, but Stockman has impressed me for over two decades as a self-important windbag in desperate search of a microphone.






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TrueTiger
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Chicken's most valuable
Member since Sep 2004
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re: David Stockman writing in the New York Times


A bit of truth from the New York Times!

Well, wonders never cease.






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dante
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Kingwood, TX
Member since Mar 2006
8445 posts

re: David Stockman writing in the New York Times


I will admit I'm not familiar with his work but I thought the article linked to drudge was very good. What in the past has given you that impression of him?





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LSUgusto
Member since May 2005
16410 posts

re: David Stockman writing in the New York Times


The comments under that article are maddening.

They just cannot get past blaming Reagan/Bush, tax cuts for the rich and wars for all of our problems. They have no reservations about debt, spending, centralized planning and still think FDR ended the Depression.

How in the world did so many intelligent-sounding people get so brainwashed? And the calls for a Krugman response show just how unable to think for themselves they actually are. I can tell you what Krugman will say... It was Bush/Reagan, wars, low taxes on the rich and lack of spending that are fueling our demise.






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RCDfan1950
LSU Fan
United States
Member since Feb 2007
11096 posts

re: David Stockman writing in the New York Times


Wow...thanks IB. One of the most concise assessments re the economy...ever.

I'm going to forward this to a friend who has a lot at stake (401k) in the Market. Already told him he should take the hit and get something in hand.

Damn. Humanity throwin survival and prosperity stuff up on the wall.







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Rex
LSU Fan
Here, there, and nowhere
Member since Sep 2004
56059 posts

re: David Stockman writing in the New York Times


quote:

The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest bubble pops, there will be nothing to stop the collapse. If this sounds like advice to get out of the markets and hide out in cash, it is.

So, wait... there's a global currency war but we're supposed to hide out in CASH?

I think Mr. Stockman just wanted to play Chicken Little to get a bit of pub.






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crawdaddy52
Vanderbilt Fan
Member since Dec 2010
894 posts

re: David Stockman writing in the New York Times


This is the man who more or less admitted to bullshiteting us on the whole supply side philosophy. We're suppose to believe him now?





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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: David Stockman writing in the New York Times


Look I believe what he's saying, the rich are getting richer, the poor and well getting poorer....this is BC THE RICH INVEST AND BEAT INFLATION whether it be stocks,real estate, or new businesses

I like stockman, but at the end of his appearance on varney and co this morning....

HE ANNOUNCED THE RELEASE OF A NEW BOOK!!!!

you guys sit on cash and grow your money at -4% annually waiting for the bubble to burst, I'll stick to dividend growth investing and when the next crash happens, which it will, I will collect more shares on my dividends, and I will buy even more shares with the cash I have on hand.






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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
25459 posts

re: David Stockman writing in the New York Times


quote:

So, wait... there's a global currency war but we're supposed to hide out in CASH?


What's so funny?

You better be in cash (and not in equities) if and when the bond bubble pops.






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