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David Stockman Explains How To Fix The World (In 7 Words)

Tyler Durden's picture




 

While we are used to David Stockman's detailed and lengthy "nailing" of the real state of the world, the following brief clip of an interview with Fox Business, in which David explains how to 'fix' so many of our problems, can be summarized perfectly in just seven short words: "Replace The Fed with the free market."

 

Enjoy 4 minutes of refeshing honesty... as the Fox anchor just cannot fathom who or what would "control" rates if there was no Fed...

 

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Wed, 11/04/2015 - 20:35 | 6751389 Baby Bladeface
Baby Bladeface's picture

3 words: raze Vichy DC

Wed, 11/04/2015 - 20:36 | 6751401 coinhead
coinhead's picture

BUY BITCOIN!!!!

Wed, 11/04/2015 - 20:43 | 6751435 J S Bach
J S Bach's picture

"Replace The Fed with the free market.

This is still far too vague.

We need to replace the Fed with honest debt-free money.  Say THAT, Mr. Stockman.

Wed, 11/04/2015 - 20:56 | 6751499 two hoots
two hoots's picture

 

Before:  Most couldn’t distinguish the Federal Reserve from the US Treasury.

 

Now:  The Fed is in the news and taking hits for the economy’s current and future condition from many quarters.

 

After:  If the Fed goes to NIRP then everyone will know them and then their very survival will be tested.

   

Wed, 11/04/2015 - 21:03 | 6751529 Clint Liquor
Clint Liquor's picture

Free markets? Why that's just crazy talk. Everyone knows Crony-Capitalism is much better for the 0.1%.

Wed, 11/04/2015 - 21:23 | 6751615 wee-weed up
wee-weed up's picture

 

 

Absolutely correct. Replacing The Fed with the free market would work...

But the "cleansing" economic crash that would result initially..

And it's devastating effects to all the financial elites, would bring down any Administration currently in charge...

Thus it will never ever happen.

Wed, 11/04/2015 - 22:24 | 6751921 WTF_247
WTF_247's picture

The crash would be used to completely scare the public into doing whatever those in charge want.  I would gather they would use it to their full advantage.

Never let an emergency go to waste.

BTW there are no free markets.  Govt is always in there on one side or another picking winners and losers.  Its how politicians get elected - if you put your biggest donors out of business how are you going to pay for those TV ads?

Wed, 11/04/2015 - 21:37 | 6751695 ebworthen
ebworthen's picture

Heresy!  How dare he question the FED and their keepers on Wall Street!?!?

Neil Cavuto is not dumb, but clearly drinking the Koolaid!

All hail the Kleptoligarchy!  All hail the New Rome!

p.s. - Politics is the distraction.

Wed, 11/04/2015 - 23:35 | 6752184 TrustbutVerify
TrustbutVerify's picture

More accurately; Crony-Socialism.

Thu, 11/05/2015 - 10:48 | 6753377 Graph
Graph's picture

Downvoted not because I am pro-soc. It is for dumb parroting. Then again, your user name tells that you are jaust a parrot repeating other man phrases. Not much of a brain in avatar's brown bag.

Wed, 11/04/2015 - 21:05 | 6751540 Next to Arch Stanton
Next to Arch Stanton's picture

Definitely agree with your observation - more people seem to be aware of the entity, but still don't know it is not a government agency or what it was actually created to do.  Some progress better than none...

Based on what I've read (Creature from Jekyll Island, Stockman, et al), many people in US were aware of the dangers of a Central Bank around the time Fed Act was passed in 1913.  I guess they did not have reality TV or Twitter to distract them!

Wed, 11/04/2015 - 21:21 | 6751628 Money Counterfeiter
Money Counterfeiter's picture

The next implosion should wake people up.  Just hope there are enough in the right places to get back to gold.

Wed, 11/04/2015 - 21:16 | 6751590 Kaiser Sousa
Kaiser Sousa's picture

cavuto = cotton jawed fuck...

Wed, 11/04/2015 - 21:42 | 6751658 Give up. Realit...
Give up. Reality is not scientific nor even mathematical.'s picture

Oh, yeah! Sure!!! We'll just set up a congressional committee to handle things. We'll let honest politicians print the money and set the interest rate. OMFG!!!!

I like the FED. Not especially this one, but the idea of it. I don't go along with the conspiracy theorist idea that the FED is out to cannibalize the economy. If that were the case, why did they wait so long? And why are they still hanging on? I call bullshit on that theory. I am however, completely convinced that just like the Supreme Court, the FED and every one of its members has had their independence compromised by the surveillance state.

Think about a couple of years ago. Who knew all the tech companies put back doors into every piece of computer hardware and every piece of software ever written? That's what the surveillance state is about, power over people in power. Big Brother could care less about me and my wife.

Look at Bernanke. That guy is obviously as kinky as they get down there at Princeton. Trained organ grinder monkeys are doing that flesh-pounding-fruitcake with a whip is best my guess.

I just finished reading "The Hope" by Herman Wouk, a cheeky novel with an historical storyline about the creation and military expansion of Israel up to the end of the Six Day War. According to Wouk's rendering of Jews of every denomination, they're all unabashedly kinky, even Golda Meir.

Wed, 11/04/2015 - 22:06 | 6751826 MEFOBILLS
MEFOBILLS's picture

Oh, yeah! Sure!!! We'll just set up a congressional committee to handle things. We'll let honest politicians print the money and set the interest rate. OMFG!!!!

One of the issues with Treasury money in the United States is that they didn't print enough.  With regards to Lincoln's greenbacks, they never issued more than was authorized by law.  At one point Greenbacks were 30% of the money supply.  So, people of that era had genuine experience with different money types.  Their money suppy was fairly complicated with national bank credit, greenbacks, plus gold and silver.

People that make that claim OMFG!!! are hypnotized to think a certain way.  They've been hearing it their whole lives, but it is a lie, that does not meet the historical test.

In the case of Continentals, they were counterfeited by the British, and even then the continental never really broke down.  Besides, without the Continental there would be no U.S.

Now you can explicate OMG!

http://michael-hudson.com/2015/10/how-the-u-s-treasury-avoided-chronic-d...

It will take a long time to de-hypnotized people from the public screweel education and all of the lies whispered in their ear since birth.

It is ok to be ignorant, especially since this information is supressed - on purpose actually.  Hypnotism is funded by usury out of the banking system, to then buy up the press to then sell an incorrect narrative.

It is the action of a parasite intent on keeping his free rent status in society.  It is great to be the KING.

Wed, 11/04/2015 - 23:39 | 6752195 Give up. Realit...
Give up. Reality is not scientific nor even mathematical.'s picture

One can pull from history many lessons, none of which stand up to close scrutiny.  My core belief is in the infinte complexity of reality, and that the negative impact of that infinite complexity on anyone's understanding of what is going on, is an a priori truth that is remarkably underestimated.  History bears me out on that score.  Predictions are almost never even close.

I am not a Libertarian, which is just another Utopian ideology like so many others before it.  Hand-crank Libertarianism has a wide array of logical, economic and social problems that stick in my craw.

The dollar, the Federal Reserve Note, has achieved remarkable status in the world economy since its inception.  That status has almost never been stronger than right now.  If you recall, Lincoln, was desperate for money to spend on the war against the South.  Money chaos is a foolhardy desire.  Lincoln had no Federal Reserve Note.

The history of the dollar as the Federal Reserve Note has been a long one, but only since Wilson, who famously decried what he had done.  History did not bear his fears out on that note however.   And just because there is a worldwide depression going on it has not been a problem caused by the Federal Reserve Note per se.  The problem is a political problem, Fannie Mae, Freddy Mack, HUD and the influence of Wall Street on Congress.  That is surely no reason to throw away all the goodwill the dollar garners for our economy.

All the gold bugs here buy their gold with dollars.  And the price against the dollar is falling, and rising against most other currencies.

I'm willing to bet you are thinking, oh, they fix the price of gold.  It's a nice trick, if your economy is powerful enough to do it.

I am of the opinion that the price of gold has been intentionally pushed higher to sop up some of the trillions in new money that has been created of late.  I realize I am not in the majority here on that score, but it makes sense to me.  Gold will never be a widely used currency again, unless we're all going to carry postage stamp-sized pieces of gold leaf in our wallets.  I am right here predicting a price of gold at under $300 within one year's time.  Bookmark that prediction.

The FED has claimed it can reel in all the money they have created in the past seven years, as is needed.  And I think that's what is the problem.  We are facing tremendous colloquially understood inflation, higher consumer prices, if all this newly created money sticks around.

But you stay with your beliefs.  Don't let me sway you.  In my understanding of reality, because of the infinite complexity of reality, everything anyone believes is a religion.  A priori truths are simply that rare, and almost never used in logic.  Why, I do not know.

Raising rates will make the dollar very strong.  Too strong?  Not if it is spent buying the world.  The New American Century is well underway.  I know that.  The date is 2015, and it will be 2016 soon enough.  All the naysayers have predicted collapse for almost a generation.  The predictions of gold at $5000, and even $64000 have also all come and gone, laughably.

Thu, 11/05/2015 - 08:39 | 6752927 Rollo57
Rollo57's picture

" they never issued more than was authorized by law."

 

Wasn't this the 'idea' behind Bretton Wood and 'gold backing'? The idea was to live within ones means, and have the value of the amount of dollars in the system tied to gold, more dollars less they were worth!

Since the Fed got rid of Bretton Wood, they have managed to print as many dollars as they wanted, so much so, people haven't a clue to it's 'real' value, which is about 0.005 cents!

Facts are the US has never been it's own ruler, they simply thought they were! https://s3.amazonaws.com/khudes/Two_Constitutions_in_US.pdf

Thu, 11/05/2015 - 09:39 | 6753111 MEFOBILLS
MEFOBILLS's picture

Bretton Woods was to set up an international trading system.  

Keynes was actually correct with his Bancor system.  This would have been a third loop, where trade is considered barter.  This is a correct assesment by Keynes.  Goods would have balanced out in international trade, and not distorted local sovereign money supplies.

However, Keynes was thwarted by our tribal friends in high places.  

Post Bretton Woods Gold Standard did do a pretty good job up until 71.  If there were imbalances in trade, countries lost their gold, or gained too much gold.  That then led to political discussion on what to do amongst the countries.

But, the U.S. wanted to fund war in Asia, and to do that they deficit spent on Vietnam. Countries like France and England would end up with these dollars, and then demand Gold to balance.

Nixon then went off the Gold Standard and then TBill standard was born.  We are still in a TBill standard world now, which is a debt standard.

Keep the truth of things in mind.  Volume of money should always match goods and services.  The creation of money should be volume controlled to match the goods and services only.  This applies whether it is an international loop of trade, or if it is internal money to a country.

As Radical M. says, the world is only an entropy pump.  In MEFO parlance, there is only conversion.  We convert the worlds free materials and goods using our labor, to then fashion useful things.

Economics has a lot of false dichotomies, one of which is "growth" when in fact there is only conversion.  The other falsehoods are how money should be created and destroyed, and of course money's true nature.

Its true nature is law.

Thu, 11/05/2015 - 22:59 | 6754510 Radical Marijuana
Radical Marijuana's picture

Yes correct,

MEFOBILLS:

We are still in a TBill standard world now, which is a debt standard.

I also agree that the true nature of money is law, as Aristotle stated long ago, since money works primarily as a human symbol, which the law codified. However, the deeper problem that I emphasize is that the only real connection between natural laws and human laws is ability to back up lies with violence.

The American Dollar was supreme while the American Military was supreme. However, that is perhaps on the edge of falling apart, as the previous world system that lasted since the end of the Second World War?

I include the domestic police into that overall situation. The underlying issue with the human "rule of law" is that it is ultimately based upon the murder system, since murder is the most extreme form of robbery, while sovereignty is based upon the power to rob. Taxation is legalized robbery, where resisting being taxed can get one killed. Ideally, there should have been constitutional checks and balances to limit those powers, as well as citizens able to elect different representatives, to be another sort of limit on the abuses of the powers of governments to rob, and to kill to back up that robbery.

The PROBLEM has been the increasing PRIVATIZATION of public powers, first and foremost that privately controlled banks get to make the public "money" supplies out of nothing as debts, while governments enforce those frauds. The only things that exist are the dynamic equilibria between different systems of organized lies operating robberies. The PROBLEM is that those equilibria in the case of the USA have become more and more extremely UNBALANCED, to the degree that there no longer appears to be anything within a sufficiently functional constitutional framework of checks and balances, or from the influences of citizens, that can change the degree to which the overwhelming PRIVATIZATION of the public "money" supply has become a runaway system, more and more feeding the effective PRIVATIZATION of the public murder system.

Money was indeed made by law. However, it is arguable that the the current American monetary system is prima facie unconstitutional. Certainly, the effect was for the government to give away the power to make money out of nothing to privately controlled banks, thereby creating the elaborate system, which became the "TBill standard world now, which is a debt standard."

I liked Mike Maloney's videos about how those convoluted systems work.

http://hiddensecretsofmoney.com/videos/episode-4

Episode 4 - The Biggest Scam In The History Of Mankind (In 7 Easy Steps)

However, I regarded his bogus' 'solutions' as more old-fashioned baloney.

The original bimetallic standard for the real American money provide the death penalty for those who debased that money. There was always some sort of death controls behind the debt controls. My overview that money is measurement backed by murder is consistent with the view that money is made by human laws, after one recognizes that the only connection between natural laws and human laws is the ability to back up lies with violence.

The PROBLEM is that those systems of ENFORCED FRAUDS have ended up becoming more and more effectively PRIVATIZED. Therefore, that monetary system has more and more served and benefited smaller and smaller minorities, in an oligarchic plutocracy, where the main source of the "wealth" of those plutocrats became their ability to legally counterfeit the public "money" supply, which situations were driven by vicious spirals of feedback loops via POLITICAL FUNDING ENFORCING FRAUDS.

Money MUST be measurement backed by murder, and that IS a matter made by human laws, as based upon human symbols backed by human behaviors. However, the current systems have become SO EXTREMELY UNBALANCED that there are no longer any feasible ways within those systems to correct that, other than through factors that are practically the self-destruction of that debt slavery system in its present form.

Those who call for some return of "free markets" to operate the monetary systems tend to gloss over the murder systems that have to back that money up, in one way or another, sooner or later ... (as I elaborated in my comment below.)

Thu, 11/05/2015 - 15:44 | 6754646 Give up. Realit...
Give up. Reality is not scientific nor even mathematical.'s picture

"Keep the truth of things in mind.  Volume of money should always match goods and services.  The creation of money should be volume controlled to match the goods and services only. [...]"

Huh?  You are delusional if you think there's balance in any possible economic system.  Goods and services creation always far exceed money creation, because the growth/contraction of goods and services is entrepreneur-driven.  Not every idea is bought.  Not every item or service is sold.

And then you esoterically ignore the real question.  If the FED does not control money supply, who then?  Al Gore?  John McCain?  Justin Troudeau?  Socks, the Clinton's cat?  Kaitlyn Jenner?  The Kardashians?

I'm right back to where I started, OMFG!!!!!

 

Thu, 11/05/2015 - 08:31 | 6752912 Rollo57
Rollo57's picture

"I don't go along with the conspiracy theorist idea that the FED is out to cannibalize the economy. If that were the case, why did they wait so long? "

Because it's not just US economy at stake, they need to get the rest of their 'ducks' lined up, i.e. Middle East, Europe [TTIP] Asia [TPP], so it's been a long process, which would have come to fruition before now, but for the 'internet'! The UN Paris meeting in December, is not just about Climate Change, they intend to write paperwork on a Constitiution for One World Government. http://www.churchmilitant.com/video/episode/micd-upclimate-confusion  FF to 21:00 for more information.

 

Wed, 11/04/2015 - 20:35 | 6751390 Hohum
Hohum's picture

Sounds great.  But where's the net energy? Because if net energy doesn't pick up, we aren't going to get richer, notwithstanding throwing tons of dirt on the Fed's grave.

Wed, 11/04/2015 - 21:19 | 6751614 hxc
hxc's picture

The fact that someone can understand that the fed is a bad thing while not understand how markets work makes me sad sometimes.

 

Come on lamedick, I think free markets can deal with energy.

 

Wed, 11/04/2015 - 20:36 | 6751400 1 over Infinity
1 over Infinity's picture

Government has no business in business.

 

Wed, 11/04/2015 - 20:36 | 6751403 LetThemEatRand
LetThemEatRand's picture

It is truly bizarre that the vast majority of Americans accept without the slightest question that a cartel of private banks should dictate everything from our national monetary policy to interest rates, and be in charge of issuing our national currency as a debt owed by taxpayers to the same banks.  It should be shocking and insane to everyone that a group of private bankers can create money out of thin air and expect taxpayers to submit willingly to the IRS to pay interest on something created from nothing.

Wed, 11/04/2015 - 20:47 | 6751456 new game
new game's picture

economics, real estate, accounting, math, ect. ect:just confussing enuff so da average da can't compute ashit. why try to educate an idiot at birth? hear ya though...

Wed, 11/04/2015 - 20:49 | 6751466 new game
new game's picture

so therefore we must be exceptional, ha...

Wed, 11/04/2015 - 20:57 | 6751501 new game
new game's picture

the stockman syndrom:nobody listened and nobody cared til....

Wed, 11/04/2015 - 21:05 | 6751538 MasterControl
MasterControl's picture

Not really when you take into consideration the fact that the government took over education in the 70's

Wed, 11/04/2015 - 21:18 | 6751583 LetThemEatRand
LetThemEatRand's picture

The Fed was created in 1913, and private bankers had plenty of power over the economy before that.  The same banks that became the Fed in many respects created the economic turmoil that led to the public accepting the Fed in 1913.  It's a deeper problem than public education, though I agree with you that public education has become little more than a tool of state propaganda.

Wed, 11/04/2015 - 21:17 | 6751550 two hoots
two hoots's picture

Here is an old concept:

Section 8  The Powers of Congress (not the un-Federal Reserve)

1: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

2: To borrow Money on the credit of the United States;

3: To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

4: To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

5: To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures

Wed, 11/04/2015 - 20:39 | 6751404 SSRI Junkie
SSRI Junkie's picture

"SSRI Junkie Explains How To Fix The World (In 7 Words)"

 

1-guillotine

2-all

3-the

4-bankster

5-oligarchs

6-and

7-politicians

Wed, 11/04/2015 - 20:37 | 6751407 Johnny Horscaulk
Johnny Horscaulk's picture

I gotta admit, I had a hard time getting through Stockman's book... 's review on ZH last year

http://www.zerohedge.com/news/2014-09-01/great-deformation

I kinda blew my reading load getting through book 4 of game of thrones.

Lamentably, I like to have a scotch or two when I read - don't remember much from the book except that the queen used a body double for the naked walking scene -

Rebecca Van Cleave

Twice the cleavage!

http://www.ew.com/article/2015/06/18/game-thrones-lena-headey-nude-doubl...

We also need to simplify the tax code for something less Byzantine - which would also drastically reduce government interference in our markets, as well as our lives.

Wed, 11/04/2015 - 20:45 | 6751447 Atomizer
Atomizer's picture

I didn't watch the video yet. David, tread carefully. I loathe the Federal Reserve as many on this site.

You and others will be hunted down and killed. Perpetuating a Global Government will not manifest itself. Again, I didn't watch the video. However, I do see the transformation of global banking by Bank of International Settlements. Everyday. 

Good luck. People see thru the bullshit! 

Wed, 11/04/2015 - 20:46 | 6751451 U4 eee aaa
U4 eee aaa's picture

Unleash the billionaires. Aren't they the ones pulling the strings at the Fed?

Wed, 11/04/2015 - 20:48 | 6751463 Cruel Aid
Cruel Aid's picture

cavuto asked' who will set the rates, like the rates could never be driven by supply and demand in a free market. 

And it can't be, but when talking theory, he should act like he took an economics class. Sounded like a dumbass there.

Wed, 11/04/2015 - 21:01 | 6751515 Cabreado
Cabreado's picture

Overhaul a defunct, criminal Congress. Apparently even Stockman can't quite deduce it down to five words... so then, "replacing the Fed" and "free markets..." et al remains simply gibberish.

Wed, 11/04/2015 - 21:07 | 6751526 Arthur Schopenhauer
Arthur Schopenhauer's picture

What is so ironic is his last name is "Stock man".

 

And by the way...We don't need no steenking Supreme court judges (MONARCHS) making final decisions about what is legal and what ain't, either.

Wed, 11/04/2015 - 21:06 | 6751542 Atomizer
Atomizer's picture

The Chaos Theory is being used to attract the kibbles and bits for socialist expansion.

Windows OS10 is a good example from Bill Gates. One year free download upgrade, we collect your data mining shit. You pay x5 based on usage. 

Same agenda regarding reducing carbon omissions Agenda 21 Protocol. Block the win10 download. 

 

Wed, 11/04/2015 - 21:23 | 6751582 Arthur Schopenhauer
Arthur Schopenhauer's picture

There is so much shit goin' on its hard to say which way to look:

1. I agree with everything David Stockman says.

2. Why is this shit happening in the first place? You've got multi gazillionaires that have already BOUGHT the government. They view the government as nothing other than an expectation of a return on their investment.

Hell... they don't even care any more. They'll tell you straight out on freekin' National TV.

Charles Koch Expects Something In Return

Wed, 11/04/2015 - 22:13 | 6751862 Cruel Aid
Cruel Aid's picture

Why is this shit happening in the first place?

global government of the UN planned for over a century but kickstarted the final push in '92. America is in the way.

Isn't everyone clear on this yet?

Wed, 11/04/2015 - 23:25 | 6752151 Arthur Schopenhauer
Arthur Schopenhauer's picture

Affordable housing,Ballot Box Planning,Benefit of all,Benefits-Driven,Buffer Zones,Cap & Trade,Choice,Climate Change,Common Core Curriculum,Common good,Community Protocol,Comprehensive planning,Consensus,Conservation Easement,Direct instruction,Downzoning,Endangered species,Environment,Environmental Impact Report (EIR),Environmental Justice,Equity,Facilitator,Fair,General Plan,Global Warming,Good Business Sense,Grants,Green House Gas (GHG) Emissions,Greenways,Growth management,Habitat,HEAL (Healthy Eating Active Living) Communities,Healthy Communities Strategy,High Speed Rail,Historic preservation,Housing Element,Inclusive,Inter-disciplinary,International baccalaureate,International Council on Local Environmental Initiatives (ICLEI),Invasive species,Jobs-Housing Connection,Land Use Policies,Lifelong learning,Livable communities,Livable Communities,Local,Local Governments for Sustainability,Metropolitan Planning Organizations,Mixed Use Development,Modeling,Multi-Use Dwellings,New Economy,New Urbanism,New World Order,One planet communities,Open Space,Outcome based education,Outcomes,Parking Policy,Precautionary approach,Precautionary Principle,Preserve,Priority Conservation Areas,Priority Development Areas (PDA),Prosperity,Protect,Public/Private partnerships,Quality of life,Redevelopment,Regional,Resilient Cities,Responsible development,Restoration,Safe Routes to Schools,Sanctuary,Scenic views and vistas,School to work,Sensitive Lands,Smart growth,Smart Streets,Social justice,Stack and Pack Housing,Stakeholder,Sustainable Communities Initiative,Sustainable communities partnership,Sustainable communities strategies,Sustainable development,Sustainable Economic Development,Sustainable medicine,Three "E"s of Sustainablity-Equity, Economy, Environment,Traffic calming,Transit Oriented Development (TOD),Transportation Justice,Triple bottom line,Upzoning, Urban Growth Boundary,Urban revitalization,Vehicle Mileage Traveled Tax,Vibrant Neighborhoods,Vision,Visioning Meetings,Walkable Communities,Watershed,Wetlands,Wildlands

Wed, 11/04/2015 - 21:23 | 6751635 Niall Of The Ni...
Niall Of The Nine Hostages's picture

The free market would send real interest rates to levels where it actually made sense for people to lend out their own money---that is, to Russian levels or higher. 

Unable to finance a huge standing army to defend the empire, Uncle Sugar would have to leave the House of Saud to its fate. Enter a free market in oil too---where oil is $200 a barrel and USDRUB is fair value (15 or lower). Russia would finally be the rich country she should be.

Stocks drop 90 percent, banks to zero and the only equities with any value are for firms producing real things---oil, food and metals, precious and otherwise. Anyone with a penny in Apple or Facebook would lose it all, and deserve to.

It's just possible you'd see working-class white men unafraid of a hard day's work doing something productive driving Cadillacs, marrying good women, raising families, and still be able to save enough to retire on when they're too old for oilpatch or farm work. While bankers who escaped prison but not destitution got on with drinking themselves to death.

Not gonna fucking happen. 

 

Wed, 11/04/2015 - 21:27 | 6751653 gdpetti
gdpetti's picture

The Fed is just the tool, Stockman needs to look at its user.

Wed, 11/04/2015 - 21:32 | 6751674 medium giraffe
medium giraffe's picture

Fox only understands the new normal market where ben makes it go up and janet makes it go sideways but they like to watch fake rate rise roulette and talk about it and chill and netflix and stuff. 

Wed, 11/04/2015 - 21:33 | 6751676 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

We all gave the FED enough rope to hang themselves from gallows trillions of times over. Who on Z/H ever thought they would fail in the end?

 

People don't get that the FED has already failed, and cannot possibly recoup lost status. We don't have to call for an end of the FED anymore IMHO. We are at the literal end of the FED right now.

Wed, 11/04/2015 - 21:42 | 6751714 negatratoron
negatratoron's picture

"Replace the fed with a free market" should be shortened to "Get rid of the fed" imo.  Beneath the fed, the market is already free.

Wed, 11/04/2015 - 21:50 | 6751749 MEFOBILLS
MEFOBILLS's picture

Did the Russian's use Free Markets and Private Banks to insulate themselves?

No, it was under ostensible "free markets' and foreign credit that Russia became usurped and foreign Oligarchs attempted to take over.

Free Markets is just code for parasites to take a "free lunch." 

The problem isn't the FED.  The FED is a product of private bankers getting their way in 1912.  The FED is their child.  

Just getting rid of the FED says nothing about the nature of private banker credit.  It says nothing about usury/rents taken on money.  It says nothing about the legality of money.  It says nothing about how money channels, and what kind of benefit it leaves in its wake.

Stockman is simply wrong, and every time he opens his mouth he does a disservice to the truth.

If one holds an idology that can be demonstrated to be wrong, especially by real history, then they should be intellectually honest and eject that theory.  To cling to a theory, because of lifelong conditioning, just means you are weak minded.

Stockman is weak minded.

Wed, 11/04/2015 - 22:03 | 6751810 Billy Shears
Billy Shears's picture

Israeli soldier exposes genocide in Palestine and collusion of local US police departments with IDF...

http://educate-yourself.org/cn/eranefratiarrested03aug14.shtml

Wed, 11/04/2015 - 22:08 | 6751848 idontcare
idontcare's picture

Dave, thanks for pushing Collins and Aikman.  Any chance you could throw a little cash my way to make up for your shit recommendation?

Wed, 11/04/2015 - 22:09 | 6751851 Atomizer
Atomizer's picture

I love Trump for President. Maybe we should let Hillary become the next marxists nominated DNC candidate. They will make Jimmy Carter look like a saint in raising Federal Reserve Bank rates. We can watch the Clinton / Obama blame game. 

Wash, rinse, repeat. But we need to subsidize all corporate manufacturer sites for tax invasion to sport European NIRP to kick the collective IMF remonetizing debt to meet GDP Forecast. 

Fuck you Janet Yellen. And the international party is not going to succeed. Think SWIFT accounts. Those fucker's are going to find accounts empty. It will be held in escrow, not stolen. 

This game has to end. Are you listening Janet? 

Wed, 11/04/2015 - 22:12 | 6751858 MEFOBILLS
MEFOBILLS's picture

Oh, yeah! Sure!!! We'll just set up a congressional committee to handle things. We'll let honest politicians print the money and the interest rate. OMFG!!!!

 

Never mind 2500 years of Coin Money issued by the Sovereign.  Or 600 years of Talley Stick experience in England.

 

Nah, there is no history on Government printing money.

OMG!

Thu, 11/05/2015 - 18:12 | 6752237 TrustbutVerify
TrustbutVerify's picture

A free market in rates, and elsewhere, would drive a desire for honest information and statistics.  A lot of the bogus economic numbers would likely just fall to the wayside or have to be adjusted greatly.  New sources might emerge.  Would people accept the bogus employment and inflation figures?  I think not.  Suddenly, real and accurate economic stats would be desired.  Anyway, for a while now there's been no need to pay attention to stats considering the overarching influence of QE and phony, out-of-whack, non-market rates.  

What's been the point of paying attention?  For years now all that's mattered has been QE and ZIRP.   

Thu, 11/05/2015 - 01:52 | 6752367 Radical Marijuana
Radical Marijuana's picture

I kind of envy people who can spout phrases like "free market," that have no operational definitions, and no feasible ways to actually be implemented. It is so easy to do so! However, what ALREADY EXISTS was due to the international bankers being the best organized gangsters, aka the banksters, capturing control over governments, through applying the methods of organized crime to the political processes, resulting in runaway vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS.

Those vicious spirals are ALREADY deeply entrenched, not only in the funding of politicians, but also through the prolonged history of the funding of education, as well as the corporations that now dominate more than 90% of all the "information" that most people receive, to the degree that there are NO politically possible ways to actually implement the grossly over-simplistic assertion: "Replace The Fed with the free market."

While I agree with Stockman's analysis of what went wrong, on a superficial level, beyond that there are way more PROFOUND PROBLEMS which have proliferated for more than a Century in the USA. (Really, throughout the entire history of Neolithic Civilization, which was transplanted to North America several Centuries ago.) Some of the obvious problems with respect to "free markets" are the degree to which there have NOT been anything remotely close to "free markets" for a long time has enabled the ownership of private property to become extremely unbalanced. 

Simplistic notions regarding "End the Fed" are predicated upon actually being able to stop the Federal Reserve Board being the single biggest institution on the planet operating symbolic robberies, (through the frauds of creating the public "money" supply out of nothing, as debts, which frauds were enforced by governments, which governments, in turn had become dominated by the banksters' political puppets, who would be voted for by enough of the masses of muppets, who had been brainwashed their whole live to believe in the banksters' bullshit.) $BILLIONS AND $TRILLIONS OF TRANSFERS OF WEALTH HAVE ALREADY BEEN ACHIEVED BY PRIVATELY CONTROLLED BANKS BEING ABLE TO CREATE THE OVERALL SYSTEM THAT THE FEDERAL RESERVE BOARD IS THE SINGLE GREATEST INSTITUTION OPERATING WITHIN! (More importantly, making "money" out of nothing as debts, to "pay" for strip-mining the planet has actually been destroying wealth.)

Going back to "free market" is a non-starter for numerous reasons, on many levels! To begin with, the funding of politics is already so extremely lopsided that nobody else can compete with the international banksters, who are collectively a group of trillionaire mass murderers. Furthermore, any attempt to merely stop that from continuing STILL LEAVES the accumulated consequences of the extreme imbalances in the relative ownership of private property, due to the prolonged successfulness of the symbolic robberies enabled by the Federal Reserve Board, and the rest of the related sociopolitical systems through which POLITICAL FUNDING ENFORCING FRAUDS ENABLED SYMBOLIC ROBBERIES OF THE MANY BY THE FEW.

As I said, I kind of envy people who can use magical phrases like "free market" without having to bother to provide any operational definitions, regarding how to actually implement that. It is so easy to be so unscientific! Firstly, those who like that magical phrase tend to deliberately ignore that the real history of civilization was primarily driven by warfare, which was a sort of "free market in murder." Generally, people who like to use their preferred kind of transcendental poetry regarding the value of having a "free market" NEVER bother to detail how there will actually be some "rule of law" to back that "free market" up, which then recreates the perpetual political problem stated in Plato's Republic as: "Who will guard the guardians?"

What has ALREADY happened to the American Democratic Republic is that the best organized gangsters, the banksters, have ALREADY captured almost complete control over the American government, and therefore, the government of the USA has become the biggest form of organized crime on the planet. Any attempts to change the political economy that the international banksters have built over the previous few Centuries, which flourished for more than a Century, while the USA was being controlled by the Federal Reserve Board, actually is attempting to address the social facts that there ALREADY is a Deep State Shadow Government. 

THAT is the de facto actual Government of the USA, while almost all of the successful politicians are their puppets, who are voted for by enough of the muppets, who have been brainwashed to believe in the banksters' bullshit, for generation after generation, and therefore, who mostly feel like they want to continue to believe in that bullshit. The flip sides of the American public "money" supply becoming about 99% privatized, such that the government of the USA ENFORCES FRAUDS by privately controlled banks, which then, in turn, have tended to dominate the POLITICAL FUNDING, are also runaway vicious spirals!

To get serious about the deeper issues:

All private property is based upon backing up claims with coercions. There is no private property outside of some system of public violence. Money is the most abstract form of that, since money is measurement backed by murder, because the debt controls are backed by the death controls. Those who promote the magic phrases of "liberty" and/or "free markets" do so in ways which are nothing more than transcendental poetry, since they never provide any operational definitions, nor possible ways to actually implement those impossible ideals, given that the real world ALREADY is almost nothing but a core of organized crime, surrounded by controlled opposition groups, i.e., bankster controlled governments, "opposed" by reactionary revolutionaries like David Stockman, et alia, who continue to stay inside the same old-fashioned dualities, manifesting as false fundamental dichotomies, and the related impossible ideals.

If one attempts to provide operational definitions that connect words to the physical world, then it becomes clear that there is nothing else than the dynamic equilibria between different systems of organized lies operating robberies, because everyone operates as entropic pumps of environmental energy flows. However, the ways that those phenomena are publicly discussed are always presented in the most absurdly backward ways possible, due to the biggest bullies' bullshit world views having been able to so totally dominate society, so much, for so long, that almost everyone thinks and communicates through those bullshit languages and presumptions.

The banksters are currently the most significant of the biggest bullies. Guys like David Stockman stay within the same basic bullshit world view that those banksters originally promoted, to enable those banksters to operate as the best professional liars and immaculate hypocrites, while their political puppets therefore also became the best professional hypocrites, who would be voted for by enough the masses of muppets, who had also been persuaded to believe in the same basic bullshit world views.

Tragically, IF one is more realistic about the actual prospects of doing anything effective to prevent or prepare for the continued runaway vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS, then the conclusions are that is NOT possible. Sure, there are an abundance of theoretically possible alternatives. However, all of those are actually politically impossible within the ALREADY established systems of debt slavery, which have ALREADY generated numbers which are debt insanities.

The deeper reasons behind how and why those social facts EXIST were due to the history of civilization necessarily operating according to the principles and methods of organized crime. The degree to which too many Americans were brainwashed to believe in some bullshit that was otherwise is the degree to which they became incompetent political idiots, or Zombie Sheeple. Judging from the social facts that the American public "money" supply has ALREADY been about 99% privatized, the ALREADY actually existing social situation is that 99% of Americans are acting like Zombie Sheeple.

Within that context, it appears to be a grossly irrational hope that the American Democratic Republic could pull out of the vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS. While there may well be an abundance of good theoretical alternatives, NONE of those have any reasonable hope of actually being implemented. Rather, the most probable futures are for the ALREADY runaway debt insanity situations to drive death insanities.

IF one is serious about the "free market" then one should address the real history of warfare having been a de facto "free market in murder." It is NOT possible to have any different monetary system, without a different murder system to back that up. Of course, those who like to promote the magical phrases of "liberty" and/or "free markets" tend to deliberately ignore the intense paradoxes of enforcement, inherent in any "rule of law." That failure was ALREADY exploited through the actual history of the best organized gangsters, the banksters, being able to capture control over the governmental guardians, because NOBODY GUARDS THE GUARDIANS.

For some of the American People, for some of its history, there was more of Republic, but they could not keep it. Instead, more and more, the best organized gangsters were able to capture control over the powers of government. Hence, "taxation" became the main way that the privately controlled banks' frauds were enforced by governments, while the "rule of law" was systematically undermined and eroded, until the biggest banks are now able to operate as the new royalty, who are deemed too big to fail, and too big to jail.

By and large, the vast majority of Americans WANT to continue to believe in the bullshit, originally promoted by the bullies, based upon false fundamental dichotomies, and the related impossible ideals. All of the publicly significant old-fashioned religions and ideologies became various forms of that kind of bullshit, which actually enabled the best professional hypocrites to operate more effectively, through sociopolitical systems which were ALWAYS NECESSARILY based upon backing up legalized lies, with legalized violence, since human beings were ALWAYS NECESSARILY operating as entropic pumps of environmental energy flows.

The Federal Reserve Board is the single greatest particular institution built by POLITICAL FUNDING ENFORCING FRAUDS. The apparent social successfulness of the Federal Reserve Board, since it DOES control the American public "money" supply, is the most extreme particular example of everything else which follows the same pattern. The American political economy is actually based upon governments ENFORCING FRAUDS by privately controlled banks. In order for that social situation to be developed and continue to exist, it was imperative that the vast majority of people deliberately ignore the principle of the conservation of energy as much as possible, while they deliberately misunderstood the concept of entropy in the most absurdly backward ways possible.

The actual social facts are that governments are the biggest forms of organized crime, controlled by the best organized gangs of criminals. However, that social situation requires that most people do not understand that, because they have been conditioned to not want to understand that. Furthermore, the continuation of those social facts, that the core systems are based upon organized crime, require that there not be any publicly significant opposition which is not being controlled. Mainly, that control of the opposition is through controlling the ways that they think. Hence, the reactionary revolutionaries, like David Stockman, appealing to the mainstream morons, by promoting the political "silly little love songs" repeating their refrains of "liberty" and "free markets."

Governments exist because organized crime exists. It is NOT possible for organized crime to NOT exist, and therefore, it is NOT possible for governments to NOT exist, the only alternatives which can actually exist are changes in the dynamic equilibria between different systems of organized lies operating robberies. To "End the Fed" could never become more than that. However, such a real, radical, revolution, that changed who controlled the public money supplies, should be based upon series of intellectual scientific revolutions. That is especially imperative because there ALREADY exist globalized systems of electronic money frauds, backed by the threat of force from atomic bombs.

The actually existing situation is NO longer comparable to the systems of paper frauds, backed by gunpowder weapons, that existed when the Federal Reserve Board was first created. Instead, there are NOW electronic frauds, backed by atomic bombs, which are trillions of times more capable and powerful than anything which ever existed before in human history! Meanwhile, the sociopolitical situations that continue to exist at the present time are still dominated by various old-fashioned religions and ideologies, which includes, in the American case, the appeals to the magical phrases of "liberty" and "free markets," WHICH HAVE DELIBERATELY MADE NO ATTEMPTS TO CHANGE THEIR METAPHYSICS IN LIGHT OF NEW PHYSICS!

The results of that kind of nonsense (because those magical phrases have no operational definitions, and hence, no practical ways to be actually implemented) are that the runway debt insanities are going to provoke death insanities. The ONLY actually feasible ways to "End the Fed" would be to perhaps survive through the psychotic breakdowns, collapses into chaos, and severe social storms blowing through, due to the ALREADY established debt slavery systems having ALREADY generated debt insanities, which have NO WAYS to be resolved within those ALREADY established systems, based upon POLITICAL FUNDING ENFORCING FRAUDS.

Within that context, David Stockman does NOT

"explain how to 'fix' so many of our problems ... summarized perfectly in just seven short words: "Replace The Fed with the free market."

Rather, Stockman merely gave another rendition of the typical sort of silly little love songs, which are popular amongst some audiences. One of the essential features of any real, radical revolutions would be to change who controls the public money supply. To say that the "free market" would do that is to promote nothing more than vacuous magical phrases. The primarily problems are that the existing systems ALREADY actually have about 99% privatized the public "money" supply, as achieved by the best organized gangsters capturing control over the powers of governments. Rather than that getting better, it continues to automatically get worse, faster, at about an exponential rate, the same as it has been doing for more than a Century, and especially so for the previous several decades.

The secondary problems are that the public murder systems have also become roughly about 75% privatized too. Therefore, not only is any attempt to recapture public control over the public money supply facing a fight where the vast majority of the population are at the bottom of a nearly vertical cliff, that the banksters at the top can just drop rocks on, but also, any attempts to make the public murder systems, operated by the police and military, have their control revert back to the American People, somehow through "free markets" enforced by some "rule of law," are also facing similar extremely unbalanced and lopsided situations, although not quite as badly as the monetary systems have become.

Basically, most Americans believe in their two dominate State Religions, which are the Monetary System, and National Security, both of which have become overwhelmingly based upon frauds and deceits! Given that those are the social facts, it appears to me to be nothing more than an intellectual conceit to pretend

how to 'fix' so many of our problems ... summarized perfectly in just seven short words: "Replace The Fed with the free market."

I tend to read Zero Hedge because it presents better analysis of the news than available through the mass media. However, I pretty well ALWAYS find that whenever the presentation of the analysis of the problems switches gears to present "solutions," the ways that the original analysis was too superficial become manifested in the ways that those bogus "solutions" are still based upon the same old-fashioned bullshit.

With respect to the former, I tend to agree with

David Stockman's detailed and lengthy "nailing" of the real state of the world.

However, when it comes to the latter, as bogus "solutions" based upon the same old-fashioned bullshit, I regard Stockman's suggestions with contempt. Of course, at the same time, I am NOT aware of anyone who is publicly significant presenting anything remotely close to a good analysis of the ways that there now exist globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs, who then presents genuine solutions, which continue to still be consistent with their analysis of that ALREADY actually existing situation.

Thu, 11/05/2015 - 02:57 | 6752613 Why.Not.
Why.Not.'s picture

That was, lengthy.

Thu, 11/05/2015 - 08:34 | 6752916 Jersey_Mountaineer
Jersey_Mountaineer's picture

Either a lazy copy-paste from someone else who has no idea what a free market is or way, way too much free time.

Thu, 11/05/2015 - 17:29 | 6755156 Radical Marijuana
Radical Marijuana's picture

THERE IS NO "FREE MARKET!"

What there IS was stated here:


The Most Devious Liars In The Room

We’ve allowed our nation to be overtaken by a financial elite who have captured the politicians, the judiciary, the mass media, and the economic levers of the state. The issuance of ever increasing levels of debt leads to their enrichment and our impoverishment. If we continue to act like passive sheep, we will forever be ruled by wolves.

Thu, 11/05/2015 - 00:52 | 6752390 hedgiex
hedgiex's picture

Stockman is staring at his navel. Even if you have honest politicians to turn into Umpires for free markets (a stretch), you have to enforce "free market" doctrine in global markets. Other economies do not owe you a living to comply or buy the BS of any temporal sacrfices for the greater good of a "rainbow" global economy still under your imaginary hegemony. You cannot enforce without going into more debts. Your forces are engaging with decreasing benefits except for those in the biz of Wars. Also force begets violence and this is more than apparent. 

Globalisation is a reality and doing fine for the Oligarchs. New cronies can be employed with new territories and fresh feeds and wastelands already in sights with corpses. Oligarchs take no prisoners. Force is to be deployed in the growth of the pipelines of globalization with max extractions. The weapons are to be deployed for this purpose not undergirding "free market" doctrines or whatever. 

That's why global markets will be kept alive as an extractive system with no sentiments as to its replacable parts (currencies, commodities, etc). You need some major currencies as media of exchange as a barter economy is too unproductive for global flows and is a leak to controls. You cannot allow major currencies to be stores of values for the preys. That's the challenge for the Oligarchs and with it all the creativity where amoral talents will congregate.

Thu, 11/05/2015 - 04:22 | 6752670 Debugas
Debugas's picture

free market today would mean alot of people would die from hunger because they have no money to pay for food

Thu, 11/05/2015 - 04:56 | 6752697 DIGrif
DIGrif's picture

I have six words that would work much better "Go back to the gold standard"

Thu, 11/05/2015 - 06:27 | 6752764 WOD
WOD's picture

Oh, he was talking about fixing the 'financial world'

 

I thought he was going to say something more along the lines of, "Jail the bankers, lawyers, judges, and politicians."

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