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John Taylor's Must Read Op-Ed Calling For The Great Reset

Tyler Durden's picture


John Taylor, the "Fed Chairman who should have been", has penned a terrific op-ed in the WSJ. Must Read.

(emphasis ours)

The End of the Growth Consensus

America added 44 million jobs in the 1980s and '90s, when both parties showed they had learned from past mistakes. The lessons have been forgotten.

By John Taylor

This month marks the two-year anniversary of the official start of
the recovery from the 2007-09 recession. But it's a recovery in name
only: Real gross domestic product growth has averaged only 2.8% per year
compared with 7.1% after the most recent deep recession in 1981-82. The
growth slowdown this year—to about 1.5% in the second quarter—is not
only disappointing, it's a reminder that the recovery has been stalled
from the start. As shown in the nearby chart, the percentage of the
working-age population that is actually working has declined since the
start of the recovery in sharp contrast to 1983-84. With unemployment
still over 9%, there is an urgent need to change course.

Some blame the weak recovery on special factors such as high personal
saving rates as households repair their balance sheets. But people are
consuming a larger fraction of their income now than they were in the
1983-84 recovery: The personal savings rate is 5.6% now compared with
9.4% then. Others blame certain sectors such as weak housing. But the
weak housing sector is much less of a negative factor today than
declining net exports were in the 1983-84 recovery, and the problem
isn't confined to any particular sector. The broad categories of
investment and consumption are both contributing less to growth. Real
GDP growth is 60%-70% less than in the early-'80s recovery, as is growth
in consumption and investment.

my view, the best way to understand the problems confronting the
American economy is to go back to the basic principles upon which the
country was founded—economic freedom and political freedom
. With lessons
learned from the century's tougher decades, including the Great
Depression of the '30s and the Great Inflation of the '70s, America
entered a period of unprecedented economic stability and growth in the
'80s and '90s. Not only was job growth amazingly strong—44 million jobs
were created during those expansions—it was a more stable and sustained
growth period than ever before in American history.

Economic policy in the '80s and '90s was decidedly
noninterventionist, especially in comparison with the damaging wage and
price controls of the '70s. Attention was paid to the principles of
economic and political liberty: limited government, incentives, private
markets, and a predictable rule of law. Monetary policy focused on price
stability. Tax reform led to lower marginal tax rates. Regulatory
reform encouraged competition and innovation. Welfare reform devolved
decisions to the states. And with strong economic growth and spending
restraint, the federal budget moved into balance.

As the 21st century began, many hoped that applying these same
limited-government and market-based policy principles to Social
Security, education and health care would create greater opportunities
and better lives for all Americans.

But policy veered in a different direction. Public officials from
both parties apparently found the limited government approach to be a
disadvantage, some simply because they wanted to do more—whether to tame
the business cycle, increase homeownership, or provide the elderly with
better drug coverage.

And so policy swung back in a more interventionist direction, with
the federal government assuming greater powers. The result was not the
intended improvement, but rather an epidemic of unintended
consequences—a financial crisis, a great recession, ballooning debt and
today's nonexistent recovery.

The change in policy direction did not
occur overnight. We saw increased federal intervention in the housing
market beginning in the late 1990s. We saw the removal of Federal
Reserve reporting and accountability requirements for money growth from
the Federal Reserve Act in 2000. We saw the return of discretionary
countercyclical fiscal policy in the form of tax rebate checks in 2001.
We saw monetary policy moving in a more activist direction with
extraordinarily low interest rates for the economic conditions in
2003-05. And, of course, interventionism reached a new peak with the
massive government bailouts of Detroit and Wall Street in 2008.

2009, Washington has doubled down on its interventionist policy. The
Fed has engaged in a super-loose monetary policy—including two rounds of
quantitative easing, QE1 in 2009 and QE2 in 2010-11. These large-scale
purchases of mortgages and Treasury debt did not bring recovery but
instead created uncertainty about their impact on inflation, the dollar
and the economy. On the fiscal side, we've also seen extraordinary
interventions—from the large poorly-designed 2009 stimulus package to a
slew of targeted programs including "cash for clunkers" and tax credits
for first-time home buyers. Again, these interventions did not lead to
recovery but instead created uncertainty about the impact of high
deficits and an exploding national debt.

Big government has proved to be a
clumsy manager, and it did not stop with monetary and fiscal policy.
Since President Obama took office, we've added on complex regulatory
interventions in health care (the Patient Protection and Affordable Care
Act) and finance (the Dodd-Frank Wall Street Reform and Consumer
Protection Act). The unintended consequences of these laws are already
raising health-care costs and deterring new investment and risk-taking.

If these government interventions are the economic problem, then the
solution is to unwind them
. Some lament that with the high debt and
bloated Fed balance sheet, we have run out of monetary and fiscal
ammunition, but this may be a blessing in disguise. The way forward is
not more spending, greater debt and continued zero-interest rates, but
spending control and a return to free-market principles.

Unfortunately, as the recent debate over the debt limit indicates,
narrow political partisanship can get in the way of a solution. The
historical evidence on what works and what doesn't is not partisan. The
harmful interventionist policies of the 1970s were supported by
Democrats and Republicans alike. So were the less interventionist
polices in the 1980s and '90s. So was the recent interventionist
revival, and so can be the restoration of less interventionist policy
going forward.


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Thu, 07/21/2011 - 09:48 | 1476826 rajat_bhatia
rajat_bhatia's picture

The Hope, Bitchez!!!

Thu, 07/21/2011 - 09:55 | 1476863 Clueless Economist
Clueless Economist's picture

Anyone see Bwaney Fwank on CNBS say with spittle shooting from his fat face that "In fact I have ALWAYS been in favor of poor people renting"

Wow that lisping creep can really lie!

Thu, 07/21/2011 - 10:03 | 1476905 Sofa King
Sofa King's picture

...that's not spittle.

Thu, 07/21/2011 - 10:16 | 1476953 gmrpeabody
gmrpeabody's picture

Hoff n' mouth?

Thu, 07/21/2011 - 10:39 | 1477063 augie
augie's picture

more like seamen in mouth. 

Thu, 07/21/2011 - 11:01 | 1477133 eisley79
eisley79's picture

Decent article, but full of false assumptions.

The 80s and 90s were an illusion of wealth creation and growth.  The 70s  was never fixed, it was hidden.  Through deregulation, futures, derivatives, and globalization/free trade, they managed to bury the problems, and move inflation from consumer goods into the markets.  What we now face is the final end game.  Everything from the 70s until now, all balled up into one mighty hammer, just waiting to come down.

Slave labour through free trade, pulling wealth from the future through financial "wizardry", and massive manipulations.  That is the real source of his so called 80s and 90s.

You can only game reality for so long, eventually the truth, and valid market forces will prevail.  The Great Depression 2 will come, regardless of how long they can keep the music going, eventually it will come.  2008 is nothing.  The first little tremor, the real earthquakes are yet to come.

So get out of debt, get into real assets, and make sure you have control of what you own.  When the SHTF, buy while everyone else is selling, and you will be well placed for the next century of true growth, and a return to an actual physical economy.

Thu, 07/21/2011 - 11:24 | 1477232 Animal Cracker
Animal Cracker's picture

I would add the assumption that this is a problem that TPTB want to fix rather than a changeover that they are trying to manage.

Thu, 07/21/2011 - 13:12 | 1477701 MacGruber
MacGruber's picture


Agreed, the elite have just spent the last several decades finding new ways to wring economic growth out of an ever increasingly dry sponge. There was an era back around the industrial revolution where the U.S. had real productive growth, but ever since it has been an act of robbing Peter to pay Paul. Unfortunately the hope would be that the elites would pay for their malfeasance alongside the other members of the global society but I have a growing suspicion that that will never happen; no reset. Just an endless period of “transient” high unemployment and general shittiness for the average person.

Thu, 07/21/2011 - 11:16 | 1477193 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

You mean a seaman's semen?



Thu, 07/21/2011 - 17:14 | 1478722 BigJim
BigJim's picture

Seaman's semen? This is Barney Frank we're talking about. Seamen's semen it is.

Thu, 07/21/2011 - 10:06 | 1476921 Clowns on Acid
Clowns on Acid's picture

Barney "he made me bite the pillow" Frank is a delusional, left wing facsist, which is weird regarding how fascists in the past have dealt with bow ties like him, is strange.

He and his ilk regard truth and untruth as the same thing.

Barney will never be the man his mother was.

Thu, 07/21/2011 - 10:18 | 1476963 CAUSE_EFFECT
CAUSE_EFFECT's picture

"Just a little spittle in your eye before you die! 

The Barron Harkonen - Dune

Thu, 07/21/2011 - 13:35 | 1477790 augie
augie's picture


Thu, 07/21/2011 - 10:38 | 1477060 curbyourrisk
curbyourrisk's picture

Hey C.E.:


To me it always sounds like he has something in his mouth when talking.....  His mother apparently never taught him to never talk with your moth full of banker cock. 

Thu, 07/21/2011 - 11:21 | 1477212 Marty Rothbard
Marty Rothbard's picture

I've always found homosexuals of Barney's generation, to be predisposed towards lying, at every opportunity.  Thats probably one reason that there are so many that are politicians.  I suspect that covering up their homosexuality during their formative years, formed lasting habits.  I can remember, as a kid, in the sixties, reading about guys being arrested in "gay" stings, and imprisoned, sort of like you hear about child molesters now, so you really can't blame them for the cover up.  It seems like they would wise up to such easily provable lies as Barney's.  Those subcommitee hearings come back to haunt you.  On the other hand, maybe he advocates poor people renting, as well as signing mortgages they can't possibly pay off.

    I don't find it to be true of people born after social approbation ended, and condemners of homosexuality began to be prortrayed as bigots, rather than as being morally upright.  However, the self deception of believing that socialism works, comes very easy to them.  Even the ones who have seen it fail again, and again.

     Oddly enough, I've never knowingly met a homosexual, who belonged to the Austrian school of economics, or the libertarian party.  Met tons that are Democrats though.

Thu, 07/21/2011 - 15:27 | 1478317 Dr. Acula
Dr. Acula's picture

>I've never knowingly met a homosexual, who belonged to the Austrian school of economics, or the libertarian party.  Met tons that are Democrats though.

Gay Austrians (no I'm not talking about Bruno) exist, you just need to meet more people.

I was able to nudge a young gay man from the Bush/Palin camp over to Ron Paul and some Rothbardian views over a couple of years. Gave him a copy of Hazlitt too.

Thu, 07/21/2011 - 17:16 | 1478731 BigJim
BigJim's picture

'Nudge', huh?

Wink wink, say no more... ;-)

Fri, 07/22/2011 - 15:51 | 1482184 Marty Rothbard
Marty Rothbard's picture

Like I said, knowingly.  

Thu, 07/21/2011 - 09:49 | 1476831 Stoploss
Stoploss's picture

Load your shorts. Im showing 10 points.

Thu, 07/21/2011 - 09:49 | 1476833 bill1102inf
bill1102inf's picture

There will be no reset. Only more enslavement. As the rich get richer and the poor get poorer.  

Thu, 07/21/2011 - 10:01 | 1476895 Quixote
Quixote's picture

CPL might disagree with you.

Thu, 07/21/2011 - 12:31 | 1477472 Syrin
Syrin's picture

What does CPL stand for?

Thu, 07/21/2011 - 09:50 | 1476836 Stoploss
Stoploss's picture

Futures at 1328.S&P 1337

Thu, 07/21/2011 - 09:57 | 1476866 qussl3
qussl3's picture

So im not the only one that sees this.

Beginning to think im going nuts.

What kinda whacked out shit is this?

Thu, 07/21/2011 - 10:07 | 1476924 Stoploss
Stoploss's picture

A running risk spread.


And risk just backed off to 1333

Thu, 07/21/2011 - 10:13 | 1476941 Stoploss
Stoploss's picture

Look at the currencies on finviz or whereever you can see them all.


When you see this, green currencies and green gold and silver.

That spread will close to the downside, shorts win.


Thu, 07/21/2011 - 09:50 | 1476837 deez nutz
deez nutz's picture

is this guy for real? the late 80's saw the start of the "import nation" and the 90's began the period of credit expansion (see: Greenspan).  Stimulas were just "sugar pumps" to hide the damages already being done to the economy. 

Thu, 07/21/2011 - 09:58 | 1476880 kito
kito's picture

agreed. this guy is delusional if he thinks reagan bush clinton were eras of non-intervention. what a crock of shit. this country's trajectory to implosion has been marked since the the end of the gold standard in the 70s. plain and simple.

Thu, 07/21/2011 - 10:08 | 1476927 Bicycle Repairman
Bicycle Repairman's picture

this country's regression to its natural economic level has been marked since the the end of WWII. plain and simple.

We need to get Europe and Asia to blow each other up, or we're going to have to work for a living.

Thu, 07/21/2011 - 11:21 | 1477215 MachoMan
MachoMan's picture

+1 for being succinct.

Thu, 07/21/2011 - 11:48 | 1477317 DrunkenMonkey
DrunkenMonkey's picture

Astutely put, sir.

Thu, 07/21/2011 - 10:09 | 1476930 Stoploss
Stoploss's picture

Thank you. Dead nuts spot on. kito

Thu, 07/21/2011 - 10:18 | 1476935 Dr. Richard Head
Dr. Richard Head's picture

Agreed.  From Nixon on, the Thrown of the President was nothing more than shifting chairs on the Titanic, while placating the public with subversive debt. Prior to 1971, was consumer credit even an option?  How about student loans that couldn’t be discharged?  Shit, 30-year mortgages back in the 60’s?  Are you kidding me?


The false perception of wealth with the onset of debt is what transitioned the populace into volunteering themselves for indentured servitude, because instant gratification was the aim of the American Dream.  George Carlin said it best, “The reason they call it the American Dream is because you have to be asleep to believe it.”


I am a 33-year-old male.  The last generation that understood the subversive nature of government monopoly control over money was my grandparent’s generation.  I remember the silver coins she would insist on us kids holding onto and never understood a damn word of it, until now.  Granted, that particular generation was placated by Social Security and Medicare.  These were the breads of the bread and circuses that were enough for that generation to shut their pie holes and let their children watch the idiot box.  The downhill slope seems to have moved toward the cliff over the past two generations, including mine.  Now it is time for my generation to not submit, fight the whole way, and subvert the financial system in order to force the reset. 


I am doing my part, are you?

Thu, 07/21/2011 - 10:22 | 1476981 gmrpeabody
gmrpeabody's picture


Thu, 07/21/2011 - 10:49 | 1477095 cocoablini
cocoablini's picture

The 70s recession was caused by the winddown of the Vietnam war and the gold standard removal.
Reagan came in and recreated the war economy, but fought no wars. We just blew wad on Star Wars and running the USSR into the ground by outprinting them. The debt exploded under Reagan, but the money printing was handed over to private industry as opposed to social "good."
Whenever you are in an economic slump, the war economy was the best way out- something Carter couldn't do.
The Reagan- Bush- Clinton years were all about money printing and bubbles just like previous administrations. Bush1 just happened to suffer the unwind of the USSR and military industrial complex. Plus the SL implosion.
John Taylor is fucking dreaming if he thinks these years were free market. Its just a cycle.

Thu, 07/21/2011 - 17:26 | 1478771 BigJim
BigJim's picture

Whenever you are in an economic slump, the war economy was the best way out

Yeah, right, because England, Germany and France during and post-war were always less wealthy before they started killing each other.

Ask yourself this - how do countries get richer by having thousands (millions?) of their most productive citizens downing tools in productive industry producing consumer goods, and going off killing each other for a few years while destroying countries' housing and factory stock, and blowing up expensive military hardware?

Answer: they don't get richer thus. I suggest you research 'The Broken Window' fallacy.

Thu, 07/21/2011 - 09:51 | 1476839 bill1102inf
bill1102inf's picture

What? Half the country just got laid off?!?! +200 Dow, +20SP500 !!!! GO GO GO !!!!

Thu, 07/21/2011 - 10:00 | 1476842 hedgeless_horseman
hedgeless_horseman's picture

The harmful interventionist policies of the 1970s were supported by Democrats and Republicans can be the restoration of less interventionist policy going forward.


And thus, those very same politicians that have enslaved us in debt will become our saviors, never to face ANY retribution.

Thu, 07/21/2011 - 10:02 | 1476898 francis_sawyer
francis_sawyer's picture

don't you love it how, in monopoly (& real life too, I suppose)... The same "banker" is both the banker & the one getting out of jail free...

Thu, 07/21/2011 - 10:04 | 1476909 I Am The Unknow...
I Am The Unknown Comic's picture

Do those kneepads come with the card?

Thu, 07/21/2011 - 09:52 | 1476846 gmcniff
gmcniff's picture

did not see the word "gold" once in the editorial

Thu, 07/21/2011 - 09:57 | 1476874 papaswamp
papaswamp's picture

Can't say gold...that collapses any remaining confidence in the dollar. If Ben had said yes gold is money the dollar would have collapsed.

Thu, 07/21/2011 - 09:53 | 1476847 Bicycle Repairman
Bicycle Repairman's picture

John assumes that the people who run things see a healthy economy as the goal.

Thu, 07/21/2011 - 09:54 | 1476851 buzzsaw99
buzzsaw99's picture

+1 this whole thing was no accident.

Thu, 07/21/2011 - 10:25 | 1477002 Dr. Richard Head
Dr. Richard Head's picture

Indeed, but the population, including myself up till 2008, was complicit in the whole thing.  No one could say no to easy credit to get the luxury car, the big house, big screen tv, riding mowers, etc.  In our quest for "wealth" through material goods, we willingly accumulated debt that was freely legislated and granted, out of thin air, by the politicians and the banks respectively.  They made it so easy so that we would volunteer for the ovens. 

No more for me, no more for my family, and no more for many of us here.  The battle line is easily seen and we can collapse this travesty of a mockery of a sham.  If we no longer take part in the debt creation, do not play with the banks, and invest in PMs, the reset will be under our control and the guillotines will be well oiled. 

Thu, 07/21/2011 - 12:25 | 1477451 gdogus erectus
gdogus erectus's picture

Same timing for me.  Question:  Are you still married?

Thu, 07/21/2011 - 13:04 | 1477656 Mariposa de Oro
Mariposa de Oro's picture

They made it so easy so that we would volunteer for the ovens.

Very true.  The middle class was set up for failure.  We are not in this place by accident.  I hear many people say that the politicians are 'stupid'.  I always ask how the most stupid of people have managed to rise to the highest levels of governmental and financial power.  I have yet to get an intelligent answer.  Mostly I just get a blank stare. 

I've always enjoyed your posts.  I must admit I thought you were much older than 33.  You give me hope for the future.  Most people in your age group are clueless.

Thu, 07/21/2011 - 16:37 | 1478616 DeadFinks
DeadFinks's picture

The middle class was set up to produce for its masters.  It's always about how manage those in the yoke.  The "stuff " is peanuts to keep the masses complacent.

Thu, 07/21/2011 - 10:01 | 1476894 Esso
Esso's picture

Pretty smart for a mechanic, BR.

Thu, 07/21/2011 - 10:10 | 1476934 unununium
unununium's picture

+21M bitcoins

Thu, 07/21/2011 - 10:32 | 1477029 ssp2s
ssp2s's picture

I don't think the author assumes that the people who run things see a healthy economy as the goal.  I think his approach to advocacy is to deliberately presume that the outcome he wants is universally shared, and then deconstruct the current m.o. and point the alternative way to success.  He is trying to be an effective advocate.

Thu, 07/21/2011 - 10:45 | 1477084 BlackholeDivestment
BlackholeDivestment's picture

                 ...their goal is                                     

                                  to  use the spoke wrench                                

                                  to loosen the spokes

                      in order to

                         cause a


Thu, 07/21/2011 - 09:54 | 1476850 Bob Sacamano
Bob Sacamano's picture

Seems to be saying the difference btwn Dems and Reps over the past number of years is imperceptible as both were clearly leftist in terms of government size and spending.  And that we should move to the right -- shrinking the scope of government.  Amen.

Thu, 07/21/2011 - 09:54 | 1476854 Archimedes
Archimedes's picture

Market just exploded! Who leaked the 10 o'clock numbers! ;-)

Thu, 07/21/2011 - 09:55 | 1476856 Dr. Engali
Dr. Engali's picture

Great day in U.S. history. We no longer have the capability to put a person into space. It's a good thing we beat the Russians to the moon so we can rely on them to shuttle us around.

Thu, 07/21/2011 - 11:06 | 1477150 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

We have space planes.  The Space Shuttle is old old technology.  Hell, the SR71 was 1950s technology.  One can only imagine what the demons are using now.


Tuco Benedicto Pacifico Juan Maria Ramirez

Thu, 07/21/2011 - 12:12 | 1477373 nonclaim
nonclaim's picture

A lot of space tasks no longer need direct human intervention and if ongoing experiments in robotic refueling of satellites goes well then this is the solution (already in advanced test phase):


Thu, 07/21/2011 - 09:55 | 1476857 Derpin USA
Derpin USA's picture

It'd be nice if he called for a true reset, but he's just calling for modifying the current structure. To call for a true reset is to acknowledge that political action is futile and that we must destroy it all and rebuild again. Wake me up when he says that.

Thu, 07/21/2011 - 09:55 | 1476859 Cognitive Dissonance
Cognitive Dissonance's picture

On CNBC this morning Goggles (MCC) and Naval Gazing Joe were calling Taylor disgruntled etc. Not a team player.

Goggles is most definitely a team player.

Thu, 07/21/2011 - 09:59 | 1476881 francis_sawyer
francis_sawyer's picture

Most people actually think MCC is wearing the goggles to protect her eyes from tear gas...

She just forgot to take them off...

Hehehehehehehe :-)

Thu, 07/21/2011 - 10:02 | 1476899 Clowns on Acid
Clowns on Acid's picture

Nice one Frank. Actually she wore those goggles to her CNBC interview. She got the job. Her 1st interview was with DSK. She hasn't taken them off since.

Thu, 07/21/2011 - 10:06 | 1476919 francis_sawyer
francis_sawyer's picture

I wonder if the Quickster borrows them for her plane rides to Omaha...

Thu, 07/21/2011 - 09:55 | 1476861 blunderdog
blunderdog's picture

Interventionism is one thing, but suggesting the roots of our problems started in the late '90s seems like willful blindness.

How about the simple fact that government spending has become a progressively larger percentage of GDP every year?  Seems like a no-brainer--if the government is responsible for a quarter of the economy, OF COURSE we're going to be massively misallocating resources.

Thu, 07/21/2011 - 11:22 | 1477224 Kayman
Kayman's picture


Exactly.  Government is 100% dead-weight. Private value-added industry and private payrolls cannot carry it.

Ergo, deficits and rising debt.

Thu, 07/21/2011 - 14:06 | 1477919 i-dog
i-dog's picture

"if the government is responsible for a quarter of the economy"

That's just the Federal Government! When you add in spending by State and Local .govs, it comes to nearly half the economy (42%)!!

Thu, 07/21/2011 - 09:55 | 1476862 konci69
konci69's picture

I will call him (John Taylor) , please wait a minute .

Thu, 07/21/2011 - 09:57 | 1476869 MobBarley
MobBarley's picture

He's talking about the ants in the sugar

when we're out of coffee.


Thu, 07/21/2011 - 09:57 | 1476870 Version 7
Version 7's picture

The credit expansion started in the 70's and basically has doubled each decade since then, going up the food chain: private -> corporate -> government. It's not rooted in the last couple of years.

Thu, 07/21/2011 - 09:57 | 1476873 monopoly
monopoly's picture

Yes, read that earlier this AM. Surprised the Journel allowed that in print. Right on.

Thu, 07/21/2011 - 09:59 | 1476877 Corn1945
Corn1945's picture

The American people have been conditioned for an entire generation to believe the government must "do something" whenever a problem arises. This comes up with the General Motors bailout. This is a company that should have been totally liquidated so the cycle could start again. Instead, the government decided that it should use taxpayer money to save a company that has thoroughly demonstrated that it is unable and unwilling to succeed.

Yet when you tell the American people this, you hear howls of "But imagine all the jobs that would have been lost? The government had to do something!"



Thu, 07/21/2011 - 10:48 | 1477093 earnulf
earnulf's picture

Reliance on the government is ingrained from the start of work.   you pay into SS if you work, you don't work you get welfare.

My Grandfather and father didn't understand the "don't work" ethic.   For them, not working meant you starved.   Work, whatever it was, meant there was food on table, which was cooked at home, not purchased in the drive thru.

Hamburger was a treat, Hot Dogs was a special occasion and lunchmeat was everyday protein.    Potatos were eaten in more ways than french fries.

I'm spoiled, we all are.   But I'm not in debt.   I have real money and I work for a living.   Paid for cars and house.   I do odd jobs, have a booth at an antiques shop and try to build things i need, myself.    I have insurance, I don't rely on the government to replace my things.

Point is, we don't need to take the handouts if we don't need 'em.   Personal Pride I guess.   If I really need help, I'll ask.   But I'll start with family first, friends second and volunteers third.    As a last resort I'll ask the government.

Too many people today ask the government first, second and last.   We have to have health care, we have to have food stamps, we have to have extended unemployment, we have to, we have to, we have to.

We are not entitled to anything.   I know that some people need help, that's what Salvation Army, Red Cross and others are for.   You are not entitled to an air-conditioned, 4bd, 3 bath house, plasma Tv's, inground pool and three cars.   You are not entitled to cable tv or internet service or cell phones or Ipads, pods or tablets.   You are not entitled to drive just because you want to.

Get up, Get out and Get Busy.    We have a neighborhood to rebuild, a community to restructure and a nation to recover.   We need to pull ourselves up by our bootstraps or our shoelaces or whatever and stop whining about our fantasy world.    The only person that will take care of you and yours is you and yours.    They don't care about you, only what they can take from you and they can't take it if you are paying attention and call BS!

Thu, 07/21/2011 - 12:39 | 1477501 Bob Sacamano
Bob Sacamano's picture

Well done.

Thu, 07/21/2011 - 14:12 | 1477936 i-dog
i-dog's picture

"Get up, Get out and Get Busy.    We have a neighborhood to rebuild, a community to restructure and a nation to recover. "


Think local, rebuild local. If local communities can rebuild to meet their own needs, and support local entrepreneurs, the nation will recover automatically.

End the Feds!!
End the European 'Experiment'!!
... before it's too late!!

Thu, 07/21/2011 - 10:01 | 1476884 FoieGras
FoieGras's picture

Taylor is clueless. The 80s boom had everything to do with reckless deficit spending and the early stages of a gigantic credit bubble and not much else. Total debt/GDP has tripled in the 30 years starting from 1979.

Today we're paying the price of what went from from 1980-2000. This has little to do with interventionism and excess regulation.

Thu, 07/21/2011 - 10:08 | 1476926 Corn1945
Corn1945's picture

You are half-correct. We are paying the price of intervention because the intervention is geared toward stopping the deleveraging.

The deleveraging would have occurred naturally if the government didn't step in to stop it.

Thu, 07/21/2011 - 10:00 | 1476892 Mongrel
Mongrel's picture

"Taylor," . . . hmmmm, that's not the right sort of name to be Fed Chairman.

Thu, 07/21/2011 - 10:08 | 1476912 Azannoth
Azannoth's picture

B. Shalom B. fits way better ;)

I just queried Google for 'John B. Taylor' against the word 'jew' = 0 results well that explains why he's no Fed Chairman material

Thu, 07/21/2011 - 10:01 | 1476893 jkruffin
jkruffin's picture

$1900 Gold in October?  Hell, gold is worth $2000 right now with all this central bank ponzi schemes running amok.  Silver should be at least $75 by now.  The whole monetary system is in failure mode....

Thu, 07/21/2011 - 10:02 | 1476901 iNull
iNull's picture

Jesus H. Christ. We've been over this and OVER this. How many times now? You can't have an economy, let alone a recovery without jobs. 40 million people in this country on fucking food stamps for Christ's sakes. I mean JHC, how many times do we have to cover the same fucking ground? Globalism and offshoring and outsourcing and NAFTA/CAFTA/GATT/WTO is just Socialism cum Communism by another name. Create a Prison Planet (AJ is right about that) and spiral everyone down to the slame slave wages and you have accomplished what governments and banksters wanted all along. A planet of slaves willing to work for slave wages in order to eat. I mean how hard is this to figure out folks? It's staring you right in the face! How long are you going to eat the free trade dogshit and call it filet mignon?

Enough already. End it.

Thu, 07/21/2011 - 10:11 | 1476929 hedgeless_horseman
hedgeless_horseman's picture

How long are you going to eat the free trade dogshit and call it filet mignon?

As long as the bought-and-paid-for politicians and media keep wrapping it in bacon. 

Three things we Americans love:  Cheap Wal-Mart shit, television, and bacon.

Thu, 07/21/2011 - 12:13 | 1477411 flattrader
flattrader's picture

Thu, 07/21/2011 - 10:15 | 1476948 blunderdog
blunderdog's picture

Tarriffs, baby.

Currency war --> trade war --> shootin' war.

Thu, 07/21/2011 - 15:40 | 1477062 poor fella
poor fella's picture


Thu, 07/21/2011 - 15:42 | 1477070 poor fella
poor fella's picture


Thu, 07/21/2011 - 10:46 | 1477088 poor fella
poor fella's picture


"[The way forward is] spending control and a return to free-market principles". Free-market principles are alive and well, for the globalists. I doubt we will ever hear the giant sucking sound in our direction ever again. Multi-nationals, with the help of the courts and Ponzi Street have completely F'ed (<-- ;) everything up.

If WWII did help pull the country out of depression, I'd argue a large part was due to the 'protectionism' that will supposedly kill the current 'recovery'? Countries become more self-reliant, complete deals that DO help those involved, and train their people to do whatever it takes. Unemployment falls, people find new interests, and have money to follow up. These days, the American Unemployed are disposable trash (lazy bastards all).

-- The only Great Reset we'll see is when the unemployed are finally taken out to the can and placed quietly on the curb. --

Energy will end up 'solving' all our problems anyway. Uh oh, gotta go, 'The Great Bernank' speaks.

Thu, 07/21/2011 - 11:03 | 1477137 iNull
iNull's picture

Thanks for putting "free market" in quotes. I'm not a sinophobe nor xenophobe, but enough is enough. How many people must stand in the unemployment line before we realize that the global slave state Wall Street banksters created only benefits TPTB? It has absolutely zero benefit to American workers (Ross Perot was right about the sucking sound more than two decades ago) or to workers in any other country for that matter. It is a relentless spiral to the bottom. That's how I know Obama is a liar. And Bush before him. And Clinton before him. And HW Bush before him. None of these bastards will touch this topic with a 22 foot pole.

Thu, 07/21/2011 - 13:15 | 1477716 squeal
squeal's picture

I'll be junked off the forum for saying this, but that sucking sound and/or spiral to the bottom was discovered long before Perot, by none other than Karl Marx.......

Thu, 07/21/2011 - 10:55 | 1477116 DR
DR's picture


But you should give economists some slack-they have to eat too and the only jobs available to them are for those economists that tout the current free market theology.

Thu, 07/21/2011 - 11:21 | 1477211 Thisson
Thisson's picture

No, free trade isn't the problem.  The problem is that because we settle international trade with fiat instead of gold, the differences in global wages never get arbitraged out of the system.  Because instead of the debtor nations being forced to get more competitive, or the creditor nations getting less competitive, as one nation's gold stock is transferred to the other and runs out, the fiat just keeps piling up in limitless stacks.


What we need to do is to get competitive by lowering the rents that must be suffered by our working class (taxes, rents, junk fees, regulatory fees, etc.).  Using gold instead of Fiat would force us to do this immediately.  Instead, we have to rely on bond vigilantes, which takes considerably longer and both deepens and prolongs our misery.

Thu, 07/21/2011 - 10:03 | 1476903 Robslob
Robslob's picture

"Big government has proved to be a clumsy manager"

I think he meant to say "Big Government merging with large multi-national banks and corporations has proved to be a clumsy merger"

Pay me later John


Thu, 07/21/2011 - 12:54 | 1477528 Bob Sacamano
Bob Sacamano's picture

To the extent govt has "merged with large banks / corps" in some unholy alliance, it is government's fault.  They could have chosen not to do so. Govt is the primary problem.  Corporations and individuals tend to take whatever they can get from government.  Need to elect those who are inclined to shrink govt's role and not hand out favors to anyone.

Thu, 07/21/2011 - 10:04 | 1476908 ViewfromUnderth...
ViewfromUndertheBridge's picture

he mentions a lot of legislation...but, Glass-Steagall?

Thu, 07/21/2011 - 10:12 | 1476939 hedgeless_horseman
hedgeless_horseman's picture

SHHHHH!  Don't say "They-Who-Must-Not-Be-Named."

Thu, 07/21/2011 - 10:04 | 1476910 bill1102inf
bill1102inf's picture

dont stop.... believiin.... hold to that feeeeeeeeeliin..... maybe sp500 will put in +100 today alone

Thu, 07/21/2011 - 10:05 | 1476914 rfullem
rfullem's picture

"he way forward is not more spending, greater debt and continued zero-interest rates, but spending control and a return to free-market principles"

a principled free-market? first, Wall Street and most of the US market has been dependent on free government money (or lax regulation) for decades. Second, when free marketeers do not get their way, they complain about regulations, high interst rates, and high taxes. With rates at zero, they lobby for tax cuts. Guess what. They will get them. Maybe they shoud stop all the compalining and focus on creating products  people want to buy irrespctive of the level of taxes or int. rates. Now that is a free market 

Thu, 07/21/2011 - 10:15 | 1476947 Bicycle Repairman
Bicycle Repairman's picture


Yuk, yuk.

Thu, 07/21/2011 - 10:05 | 1476916 Quinvarius
Quinvarius's picture

the dollar has broken under the hourly pennant consolidation at its lows. the eye of sauron is looking for a new target and never sleeps.

Thu, 07/21/2011 - 10:09 | 1476932 Hohum
Hohum's picture

Misses the bigger picture.  The challenge, if you think growth is essential, is to grow faster than total credit market debt.  What the 80s and 90s saw in contrast was a huge private debt explosion.

Thu, 07/21/2011 - 10:14 | 1476943 Life of Illusion
Thu, 07/21/2011 - 10:16 | 1476955 Winston Smith 2009
Winston Smith 2009's picture

"a return to free-market principles"

A "free market" has never really existed and we're so far away from it worldwide that it will never return because the mechanism that brought us to this point is as strong as ever - politicians everywhere and throughout history have been and continue to be owned through the application of large sums of money.

Thu, 07/21/2011 - 10:17 | 1476957 ivana
ivana's picture

This is so romantic. Now complete politics & governments have been hijacked by banksters and they will suffocate all economies/countries within thier influence and try to spread influence in emerging markets. What they want is expropriation from existing owners. This is the cheapest way to conquer new assets.

When they face the wall of anger and resistance, true wars will start.

It will last for years... after that, when job is done or done to maximum - above Great Reset will take place

Thu, 07/21/2011 - 10:19 | 1476961 centerline
centerline's picture

Sorry.  Junk article.  We all the know truth is that system is mathematical constructed in a fashion that requires infinite growth.  Leverage was required to keep the system from falling over dead in the 70's, then the 80's, etc.  Now, we have a bubble economy - the end stages of the system.  Debt saturation.  Talking about what mechanism was used to get us to this point is missing the point.  It dodges the real issues, which point directly the system itself, how it is constructed, and WHO owns it.

This article is a  epic fail and more misdirection.  Remember folks...  financial crisis = sovereign crisis = political crisis = currency crisis.  We are entering into stage 3.  This article is perfectly timed... blaming the politicians for intervention.  Yeah... there is truth there - but remember who owns Washington.  Follow the money bitches.

Thu, 07/21/2011 - 10:42 | 1477071 Version 7
Version 7's picture

Nobody wants to admit that in the absence of economic growth the financial system as exists today will be discarded, for simply it has no role to play, macro speaking.

Thu, 07/21/2011 - 11:01 | 1477135 r101958
r101958's picture

+100 Centerline

Thu, 07/21/2011 - 10:19 | 1476971 Itsalie
Itsalie's picture

Hello, didn't they argue that economic freedom = throwing out Glass Steagal? So killing GS was a good thing? Maybe less hyperventilation, less constitution garbage and use the thinking cap ok? Then the ;eft and right hand might start coordinating the swing better. Is that too much to ask ZH?

Thu, 07/21/2011 - 13:05 | 1477662 Bob Sacamano
Bob Sacamano's picture

The reason for Glass Steagal and many bank regs is due to the govt guaranteeing deposits (aka bank liabilities) AND requiring very little equity capital at banks (what business runs on 8% equity?? None, because it is far too risky).

So limit/eliminate govt guarantees and /or meaningfully raise bank equity requirements (think 25%) for banks and bank regulations could largely be dismantled.   Get government out of the way. 

Thu, 07/21/2011 - 10:26 | 1477008 The Shootist
The Shootist's picture

Is anyone else upset the Peter Schiff show isn't broadcasting right now?!  =(

Thu, 07/21/2011 - 11:11 | 1477164 iNull
iNull's picture

Nah. I used to be a huge PS fan but in the end he turned out to be just another metal bug. A one trick pony inflationista with blinders on.

Thu, 07/21/2011 - 10:42 | 1477075 mikjall
mikjall's picture

This is a vertiable crock of crap: he speaks non-specifically, and indeed inaccurately, of "interventionist policy" as the causes of the present "recession" and miserable "recovery", when it is quite obvious that the main cause is the deregulation, and (continuing) criminal behavior of the FIRE sector, especially the vulture banks. If by "intervention" he means "deregulation", there might be a case. We can all agree that the subsequent interventions supposedly meant to confront the problem have been abysmal failures, but this is largely because regulation has been compromised and not restored. And let us ask who it is that is really "intervening" - whoops! It's the FIRE sector again, through bribes, threats and lobbyism. Government, so-called, is nothing but a conduit for the organized crime known as "banking", and these subsequent interventions are nothing but follow-up vulture schemes. Follow the money, suckers! All of this party politicking, tea-partying and neo-con propaganda is just designed to divert everyone's attention and keep us all bickering with one another about bugger-all. Get in some real regulators like William Black and Elizabeth Warren, and get in some congresspersons who aren't on the take (are there any?) and watch the economy begin to come together. "A terrific op-ed in the WSJ"??? "Must Read"??? Don't make me laugh!


Thu, 07/21/2011 - 11:21 | 1477214 linrom
linrom's picture

Great analysis. I call US government a subsidiary of multi-national corporations, staffed by borrowed corporate employees. To think that an independent entity such as government exists is "beyond reason."

Thu, 07/21/2011 - 13:03 | 1477648 squeal
squeal's picture

I was going to post, but you already got it covered here. Great post.

This John Taylor is apparently just another "free-market" goon. It's hard to say if he's lying, or just delusional. In any event , he's way off the mark.

Note to free market goons: pinning the current recession on "interventionist" government policies without mentioning deregulation and corporate malfeasance is a total fail. The circle of people who believe the bullshit free market fairy tale grows smaller day by day.

Thu, 07/21/2011 - 13:11 | 1477693 Bob Sacamano
Bob Sacamano's picture

We need dramatically less regulations so capital flows to where it wants without govt interference and direction.  

The only rationale for heavy handed bank regulations is because the govt guarantees deposits (aka bank liabilities) AND requires very little equity capital at banks (what business runs on 8% equity?? None, because it is far too risky).

So limit/eliminate govt deposit guarantees and /or meaningfully raise bank equity requirements (think 25%) for banks and bank regulations could largely be dismantled.   Get government out of the way. 

Thu, 07/21/2011 - 10:43 | 1477078 pods
pods's picture

If I was still asleep, this article would make sense.  Sure, you can look at growth in the 80s, 90s as great as compared to today.  You gotta look at debt growth too.

Basically since Nixon took us off the gold standard (cause European central banks were flush with gold again) it has been a fiat-credit nightmare.  

One cannot begin to speak of anytime since 71 as anything organic, or even economic.  It has been all about growth in credit (debt) and masking inflation.  Women's lib, outsourcing, hedonics.  You just cannot build any kind of argument about now using the last 20-30 years, as what was gained back then, was taken from now.


Thu, 07/21/2011 - 11:06 | 1477152 iNull
iNull's picture

Very few people are aware of what Nixon did in 71. We were mired in Vietnam and it just slipped in under the wire. Yet few presidential acts have had more significance.

Thu, 07/21/2011 - 11:53 | 1477335 pods
pods's picture

I am torn about what he did.  He finalized fiat.  But in reality, our gold was being bled from the nation.  So I give him credit. But, it was done after the frenchies and GB were replenished on their gold IIRC, so it was closing the barn door after the barn burned.

A very tough thing to think about.  I want hard money, but you cannot have one nation on hard money and all the others printing paper.



Thu, 07/21/2011 - 11:10 | 1477155 r101958
r101958's picture

You are correct pods but now we should also point out the other, very important, parallel. Our (US) production of oil peaked at about the same time which then started the era of ever larger imports of oil to support our economy/way of life. Do we actually propose to think that the folks in the know did not already know that today would come?  Furthermore, do we propose to think that there is no linkage between these important historical facts? I guess nobody here plays chess? A really good chess player thinks ahead 5,6,7 or more of his/her own moves and those of his opponent. It certainly would be arrogant of us to think that TPTB don't think that far ahead.

Thu, 07/21/2011 - 11:50 | 1477323 pods
pods's picture

I agree. The bretton woods agreement was to make the European bankers whole, and when that was done, it was closed.  

Why trade gold for oil, especially when you can trade fiats for it?  All that was needed was a workable system that both sides benefited from.

Just finishing up "Confessions of an economic Hitman", and it explains it pretty well.  We buy oil in fiat, they recycle fiat into USTs, and the interest in USTs is used to provide infrastructure to the house of Saud, etc. Of course using amerikan firms.  

Certainly a chess match.  I would say several chess matches at once. The problem is that a certain amount of those fiats would stay or come back here, and that would be a problem.  Inflation was going to be a bitch, so a way to paper over it was needed.  Enter two salary households, then outsourcing, credit boom, etc.  All ways to hide inflation.  In 2008 private debt hit the limit, and the FEDs took over.  Now we are reaching the point where the FEDs are at the limit.  Still deflation wants to roar.  If it does, there will be collapse.  So a supranational currency is in the wings, to be unveiled before the leaders are swinging from lamp posts.

Cannot have debt money in a finite world.  Well, you can, but you cannot avoid the deflationary crashes that have to happen to clear the system of too much leverage.  We are trying to avoid that because the greedy banks who should repossess the real property have too much leverage, so they are toast.  And we dont have a gov that can backstop depositors if that happens.

Sorry for the rant.


Thu, 07/21/2011 - 12:38 | 1477399 slewie the pi-rat
slewie the pi-rat's picture

good point about how something can be sold today instead of in the future.  what does this mean?  how?  well, it seems "money" has a "time dimesion" or may be two, or maybe...

offer $8K to get someone to give up a "bad" car for a "new" car, and someone who woulda bought a car in 2010 or 2011, buys one under the goobermint subsidy.  so, in 2011, he or she doesn't need a new car;  already gots it, boy-0-boy!

also in housing.  let's sell homes to people who can't afford them!  ninja (no income, no job/applicant) loans, and wtf, let's guarantee the loans, or at least make them affordable, for now!

many of these people shoulda-coulda been the homebuyers of 2011, but hey got "enticed" into buying in 2006, so they are outa the buying loop now, and hopefully not crippled for life. others are paying back "student" loans which had to be spent paying high retail for every single thing @ "accredited" schools.  somehow, kids just seem to "know" that "this is how to do it".  so the kid gets a degree, is lucky enough to find a job, gets a USA first-timer deal (only in slewie land?), buys a house and hopeZ it goes up so he can borrow more money to pay off, or interest on, loans!  let's get a new car too, wtf!  trade in the '95 ??? that the parents gave, which runs like a top, and get that subsidy.  now, the kid or couple has an education, a car, and a house, all either goobermint subsidized or guaranteed.  these kids may need a lot of medical attention, too, unless they hurry up with that stress immunity vaccination before jr arrives.  what if someone here loses a job?  this whole little econom collapses.  unless that is forbidden, in which the person has lost his/her/their very freedom.  by law.  to debt. 

good for realtors, educators, vendors, car dealers, home sellers who had bought years ago, and "finance" but bad, possibly terminal at this point, for the solvency of the nation.  especially after they morons did it, again, by tooling up a big "program" for 1st-time buyers after the bubble burst its watery film-like threshold, just in time i might add, for our young kid or kids from slewie-land, above.  so those buyers of today are used up, too, now! 

hello asia!

now, we hear people complaing that our children and grandchildren will be burdened with these debts that "we" have created.  just as today's car and home sales were made yesterday, tomorrow's income is being spent today, a'la ponzi.

actually, much of it is being wasted, some thru overpaying people, much thru overpaying for everything else.  and then there are the vast piles being transeferred or stolen. 

ok, if this can be controlled, let's do so, now.  this is the time. if it can't be controlled, let's just stop it, now. this is the time.

or, are you one of the vast majority think it is a good idea to let it run more outa control, at any cost,  and then try to control it, again, later?   

Thu, 07/21/2011 - 12:47 | 1477545 pods
pods's picture

Not sure if that last question was to me or not slewie, but I have forgone credit from here on out.  I do have a mortgage, but will not take on more debt. Autos, credit cards,etc are out of the question.

I have figured out that we are the enemy, as we created the debt.  We individually create the debt that enslaves us every time we take out a loan.  That means we can all stop this by refusing to go into debt.  If enough of us do this, the system will collapse.  I pay cash for everything I can, to avoid the skimming from mom and pops for check card use. Just keep that for online.  Have zero credit cards, lines of credit, etc.  Credit score is probably somewhere below the Deepwater Horizon.  I don't care.

I have kids now, and I really dont want them to know that I did nothing when I am face down in the oatmeal.



Thu, 07/21/2011 - 13:37 | 1477767 slewie the pi-rat
slewie the pi-rat's picture

no, not at all, altho i thought about that after i hit send & noticed you were responding, here.

is is rhetorical, but in the context of the taylor/wsj, about getting the govenment/spending/salaries/pork under control.  the folks who are "s'posed" to control this are on puppet strings, collectively, as we all are, in some or many respects. 

this collective aspect we call goobermint is outa contol, imo.  not that it hasn't always been feisty, but still...

each of us handles his/her own finances.  so will each child, eventually.  nice.

Thu, 07/21/2011 - 15:34 | 1478354 Bob Sacamano
Bob Sacamano's picture

Pods - very good thoughts.

Over the past few decades we have stolen demand from the future via debt financed consumption -- at the individual level and government level.  Problem is "the future" is now here and absolutely no one wants to go backwards in terms of consumption levels.  So they demand the government "fix" this because pain is not an option for the majority of Americans who have a strong sense of entitlement (as well as being "victims" - but that is another thread).  The question for the past two years and the next two years is whether the Fed (globally) can gin up escape velocity to get out of the deflationary forces spiral. 

Congrats on foregoing debt - I am with you.  It is sadly amusing to hear people complain about banks because the banks have some expectation that borrowers should honor the terms of the loan they signed (presumably arguing someone put a gun to their head to sign the loan docs to buy the car, house, education and the big screen tv, cell phone, restaurants, vacation, etc, etc - massive over consumption).

Biggest problem is that neither US citizens nor their elected officials have the will to suffer the deep consequences of the spending binge.  So the denial, blame shifting and government patches will only make it worse.  And they are ill prepared to compete with a world that is happy to not need all the trappings Americans require and therefore will eat our lunch competitively.


Thu, 07/21/2011 - 11:04 | 1477127 linrom
linrom's picture

For a good laugh google John Taylor and Zero Hedge! Read some of his stunning "attention grabbing headlines." The guy is a parasitical currency speculator.

The fastest rate of debt growth in US took place between 1978 and 1989. Debt was growing at QTR geometric rate of >2.5% every quarter when calculated over 4-year time frames.

Thu, 07/21/2011 - 11:03 | 1477145 poor fella
poor fella's picture

 "[The way forward is] spending control and a return to free-market principles". Free-market principles are alive and well, for the globalists. I doubt we will ever hear the giant sucking sound in our direction ever again. Multi-nationals, with the help of the courts and Ponzi Street have completely F'ed (<-- ;) everything up.

If WWII did help pull the country out of depression, I'd argue a large part was due to the 'protectionism' that will supposedly kill the current 'recovery'. Countries become more self-reliant, complete useful deals, and train their people to do whatever it takes. The fact that politicians do not represent people as the days and weeks pass, has closed the safety valve on the pressure cooker. The FTAs we have outstanding, will turn up the heat.

-- The only Great Reset we'll see is when the unemployed are finally taken out to the can and placed quietly on the curb.

-- On a long enough timeline, energy will 'solve' all our problems.

Thu, 07/21/2011 - 11:07 | 1477153 jmc8888
jmc8888's picture

The federal gov't did with freddie and fannie,what wall street blood suckers wanted.  I.E. Please do this for freedie and fannie, we want to make more money at your expense.  Ok said Washington, because they are wall street whores.

Blame wall street (and to a lesser extent washington) for Freddie and fannie.  But again, it was WALL STREET who was SCREAMING for them to get access to freddie and fannie.  Washington merely obliged.  With the reasoning? The bullshit that it would help lower income people.  It was always just a gift to wall street.

John Taylor still hasn't figured that out.  It wasn't washington imposing freddie and fannie on THEIR desires, it was washington having it imposed on them BY wall street, and then believing the bullshit that it would help lower income.

Now he's blaming Federal Reserve's actions on washington?

Guess it was only washington and not the banksters that wanted Glass-Steagall removed. (No)

So he rails about big gov't, but what he should be railing against, and it is FAR MORE ACCURATE is bankster controlled gov't.

There is a big difference.  One pigeon holes something into the wrong spot allowing for massive errors and oversights to be done. They other showcases it for what it is.  Banksters, using governement, to benefit themselves at the expense of the people.

It's not 'big gov't'.  It's bankster controlled gov't.

Otherwise you'll get a bunch of 'anti-big gov't' talking idiots as candidates elected, who in reality, would also be bankster controlled.    So what changed? Nothing.  Because John Taylor used the wrong measuring stick.

Bankster controlled gov't, is on the left, right, center, and tea.  To label it 'big gov't' is to leave oneself wide open for much more bankster controlled idiots in office who say they aren't for big gov't, until you see from the get go, that they are.

Repudiation of the odius debt. Not cutting or printing, but cancelling the debt.  Where is the debt limit at then? Where is our national debt total then? What is our deficit then? Left, right, center, tea...all made to look like the complete idiots they are as you notice, everything they've been saying not only has been sophistry, but dangerous sophistry at that. 

Everything on the table by the left, right, center, tea is STILL bankster controlled.  A preferred outcome. Only ending the fraud will save us, and destroy them.  Let the banksters pay their own bs debt off, or go under.




Thu, 07/21/2011 - 15:43 | 1478396 Bob Sacamano
Bob Sacamano's picture

When banks unduly influence government, it is government's fault for being unduly influenced -- not those who attempt to influence (banks, individuals or corporations). 


Thu, 07/21/2011 - 11:11 | 1477173 slewie the pi-rat
slewie the pi-rat's picture

did taylor not get the memo that the goobermint has been "captured" by the bankster-corporate-military-international interests?

or is he trying to get the chair of satan, thinking the batmanke might be weakening his hold on the bullshit fed to everyone daily?

so he pens something that can go smoothly up the ass of the wsj editorialists and as cog_dis relates: 

On CNBC this morning Goggles (MCC) and Naval Gazing Joe were calling Taylor disgruntled etc. Not a team player. 

hahahaha!  better luck next time, JT! 

(hint:  try the whole truth sometime.  maybe in another 20 years it'll feel safe enough for you to stop talking like a man with a paper asshole.  good luck!) 

JT writes:  The way forward is not more spending, greater debt and continued zero-interest rates, but spending control and a return to free-market principles.

oh my!  i can see what the folks in the propaganda box mean, now!  whose side you on, john?  The People's?  now, that is funny!

Thu, 07/21/2011 - 11:22 | 1477225 cafn8ed
cafn8ed's picture

Founding principles, yes. Before the Federal Reserve (Private) *Bank*. Before debt-based monetary system.

Thu, 07/21/2011 - 11:31 | 1477263 Medea
Medea's picture

Advocates for "free market principles" (whatever those are) always make me laugh.

Thu, 07/21/2011 - 11:31 | 1477265 NotApplicable
NotApplicable's picture

There's simply no such thing as a "Fed Chairman who should have been," as the Fed itself should not have ever been.

As noted by others, this article is an attempt to illuminate real problems while tying them to false causes. That it comes out in the WSJ demonstrates it is merely controlled opposition. Otherwise, folks might get the chance to hear Ron Paul instead.

Meanwhile, CNBS will play it up like Taylor is the next Martin Luther.

Thu, 07/21/2011 - 11:56 | 1477341 gwar5
gwar5's picture

John Taylor thankfully mentions liberty and freedom many times.

How many times has Obama mentioned those words? I can't remember a single instance, unless it was to the Muslim Botherhood at the Iftar dinner. 

Government spending is not growth, it's selective redistribution. Progressives can save $7.7 Trillion over the next ten years if they  "merely" go back to the Bush level spending they wailed about. 

Bush spent 19.6% of GDP. Clinton spent 19.8% of GDP.

Obama is close to 25% GDP, but it's hard to tell because his pals haven't bothered to do a budget for 2.5 years.  

Thu, 07/21/2011 - 12:54 | 1477587 EQ
EQ's picture

John is a smart guy but this article is written from a standpoint of self-delusion.  The comments before hit the nail on the head.  The 80s and 90s were the start of the Ponzi scheme.  There was nothing unprecedented or stable about Reagan's or Clinton's policies.  What we are witnessing over the past handful of years is the blow off top to the massive political fraud, market interventionism and government capture by the financial industry, corporations and the war state that really gained critical mass under Reagan and Clinton

Thu, 07/21/2011 - 12:56 | 1477590 oldman
oldman's picture

Thank you.

A dinosaur view of the state of the US

Wish it were so

No way out of here this way

Time to view the real world

Alas, Alas!!

not Atlas! Atlas!

Thu, 07/21/2011 - 13:54 | 1477853 i-dog
i-dog's picture

"If these government interventions are the economic problem, then the solution is to unwind them."

Hahaha ... Murdoch's revenge on the NWO ... an op-ed in the WSJ!!

It seems to me possible that Murdoch's previous full endorsement of the neocon faction of the NWO might be turning --- now that they have turned on him. We'll see what else he gets up to in the days/weeks ahead...I surely hope so!

End the Feds!! (Federal Reserve &
End the European 'Experiment'!! (EU & EUR)
... before it's too late!!

Thu, 07/21/2011 - 15:10 | 1478226 AchtungAffen
AchtungAffen's picture

What a bunch of bullshit. Those policies of the 80's where so good to America because its consequences were beared by the rest of the world, specially the 3rd World. Now the chicken of deregulation and privatization has come back to roost in the US and they complain saying they need more of that. Be my guest, but let the crazy stay within your borders.

The idea of selling your countries assets and expect a better life is complete magical thinking, with ponies shitting rainbows and all. Sell education, and it'll be worse and more expensive. Sell Social Security, and you'll get breadcrumbs of what you should have gotten. Privatize, sell it all away; because when it's all gone, someone has to turn off the light:


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