Bill Clinton is not responsible for the economic boom of the 90s

globalintelhub's picture

After listening to ridiculous comments as expected from a Clinton, that are offensive on multiple levels, we need to set the record straight about one of the best economic periods in American History; the late 80's and 90s.  During the career of Bill Clinton, something happened in American politics which was a transformation of a 'political' system, where intellectuals would debate issues of the day, and suggest policy changes - to one of a 'pay for play' business regime, culminating in the shadow government we have today.  Talking about special interests in modern politics is a joke - 'special interests' control the entire system.  The idea of a Trump is that this isn't an issue, because he's self-funding his campaign, and well - he's not a politician.  But that doesn't mean he can as a single individual stand up to the special interests - he may be very well overrun by this virus that's eaten away the core of our political system.  As we explain in Splitting Pennies - Understanding Forex - the world isn't as it seems, the world works in simple ways - those in power just like to make it look complicated.

The thing that business people have to understand about politics as a business - it's not a normal business.  Making a business out of politics is very corrupt.  Accepting money for the formation of laws, is an uber - conflict of interest.  

Business people must fulfill a need, perform excellent customer service, or create something unique that the market wants.  Businessmen are ALWAYS tested by the market - and they're always one trade away from ruining their entire business.  One recall from Toyota- risks their entire business.  One bad property deal from Trump - one deal with the 'wrong' person - risks the entire operation.  POLITICIANS DO NOT HAVE THAT PROBLEM.  They are never 'tested' for performance and if they are ever 'questioned' about it, they can simply use their power to make these risks minimal.  Unfortunately, they are all on board with this system.

Politicians, have no value per se, they do not need to have a skill, be literate, do their jobs properly, or perform excellent customer service.  In fact, quite the opposite.  Once elected, a politican needs to be proven to commit huge crimes in order to be ousted from office.  And that, as we've seen with HRC, is nearly impossible (because, they control the police, FBI, etc.).  Politicans have no value or skill - they have POWER.  Because once they are in office, they can enact ordinances, executive orders, create taxes, declare emergencies, zone property, create business licenses, enforce or not enforce regulations, and many other powers.  So during the course of the last 60 years, they realized they can sell on the open market their one asset - power.  It goes to the highest bidder.  Make no mistake - they are not complete puppets for their customers, they are subject to market forces that change things, make mistakes, and do not always acheive the outcomes they desire.  However, this power broker system persists in Washington to this day, and is the dominating cog in the political system.  

Bill Clinton in some way was a genius in capitalizing on this system first locally in Arkansas and then riding this gravy train all the way to the White House.  Bill Clinton was not a businessman, not an economist, not an intellectual.  He was a musician by vocation and lawyer by occupation:

Sometime in my sixteenth year, I decided I wanted to be in public life as an elected official. I loved music and thought I could be very good, but I knew I would never be John Coltrane or Stan Getz. I was interested in medicine and thought I could be a fine doctor, but I knew I would never be Michael DeBakey. But I knew I could be great in public service.[3]

The 90's was a culmination of the 80s, and several key factors, were macro circumstances that produced the boom of the 90s:

  • The collapse of the Soviet Union - leaving many vassal states for the US to claim, expand business, provide loans - it was a gold rush!
  • A continual lowering of the interest rate - not quite QE, but at the time, it was extreme
  • Strong European financial economy, being supported by the US - culminating in the Euro in 1999
  • Due to collapse of USSR, Military budget was slashed, billions flowed into technology instead of bombs, which allowed the massive tech sector to be built (Internet, Google, Microsoft)
  • Immigrants, capital, and ideas all flowed into the USA during this time, supporting the economy
  • China in early expansion, during a period where China 'needed' USA, Wal Mart expanding, US-China trade exploding (both ways - not only imports)
  • Iraq war, although a huge economic waste, had less economic devastation than other wars (like Vietnam) and enabled 10 years of cheap oil and strong US Dollar

These are just some of the economic markers.  Each should be allowed its own elaboration, as many of these points fall through the cracks of modern macroeconomics, i.e. FOREX.  That's because 99% of economists don't consider money supply in their analysis.  Let's be practical, there's hundreds of billions of dollars flowing into the United States during the 90s from other countries - is this significant?  Does this support the US Dollar?  Of course it does.  And more importantly, the money stayed here, it grew the economy, built businesses, created jobs - it was the ideal climate.  There wasn't a conspiracy, unlike what some may tell you - macro economics & politics is an animal of its own.  We can describe the 90s as 'good weather' after the storm.  

As anyone can see in the Southeast after a Hurricane passes, the weather is simply breathtaking.  That's what happened in the 90s.  Not because of Bill Clinton.  If anything, you can blame Bill Clinton for taking this economic opportunity and creating many of the problems we have today, such as the Welfare state (entitlement programs), regulation of markets, government inefficiency, and an extension of Washington's 'pay for play' game, which has turned a system of politics into something else all together.  It's an unregulated power market.  Too bad there's not an exchange, we can go short Clinton and hedge our risks.

To learn more about the way the world REALLY works, checkout Splitting Pennies - Understanding Forex - or checkout Fortress Capital Trading Academy, who offers a great Introductory course.  Forex = The reality of how the world works.

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Bill of Rights's picture

Billy and his boy toy Barney Frank own the housing bubble ... as well as the ending of Glass Stegal

LaurieAnna's picture

Bill Clinton is not responsible for the economic boom of the 90s

=====================

On the other hand, Trump is solely responsible for his almost $1 billion bankruptcy in the '90s. Ironic, isn't it?

cheech_wizard's picture

And Hillary "lost" over six billion during her tenure as Secretary of State.

Do you see the fucking difference you ignorant slut?

 

Bill of Rights's picture

When you have the likes of Lehman, Enron, Worldcom bankruptcys to name a few Trumps meager 1 billion is chump change.

Heterodox economics's picture

I'm in basic agreemet with the article. 

Bill Clinton was the luckiest President in history.  

1.  The Cold War was over, and the struggle with terrorism was in the future.

2.  The emergence of the internet fueled an  economic and stock market boom.

3.  Republican control of Congress from 1994-2000 prevented bad policies from the White House.  Even when Clinton had a Dem Congress, his health care bill failed to pass, which ironically benefitted him, for the bill, if it became law, would have harmed the economy.

4. Part of the economic boom of the '90s was due to unsound credit expansion, such as giving home loans to folks who should not have gotton them, and allowing federally insurred banks to engage in highly risky economic activity.  The problems arising from the unsound credit expansion were dumped on Clinton's successors.

 

Miss Informed's picture

Lucky at geopolitics, unlucky at love.

innertrader's picture

RONALD REAGAN CREATED the current retirement/investment account that caused Hundreds of Billions to be invested in the stock and bond market that HELPED create the amazing high tech bullish stock market of the 1990s. Yes, he created it, yet he very rarely gets create for it. But I was there and I know exactly what and how it happened.

However, that can never happen again, it's gone. It's a new world today!

Miss Informed's picture

By tripling the national debt from $900,000,000 to $2,700,000,000,000 Reagan pump primed the government debt bubble. He brought us Greenspan and the economy of serial bubbles. He made foreign intervention and military adventurism a staple of government policy. Anti labor, anti environment, irresponsible, arrogant and stupid in every sense. If you look at the roots of everything that is killing us now it all leads back to him.

jcdenton's picture

Can you imagine, what would have happened in 1993 ..

 

Had they not put Wanta in jail?

 

http://www.veteranstoday.com/2012/11/06/roadmap-to-redressing-economic-t...

 

https://youtu.be/29bkCJ81TOU?list=PL1yWdjkeR-5KSR11kvFZwmZBYf4wYf0Kh

 

When the Cold War ended, a secret fund planned for by President Ronald Reagan had been set aside to rebuild America, pay off the national debt and reward Americans for decades of sacrifice.

 

 

All this does, of course, is give Americans things that other nations around the world have had for years but at lower cost, financed through the foresight, frankly, of President Ronald Reagan.

 

 

This entire project was his plan. He entrusted the currency trading critical part of it to Lee Wanta, who some now considered the greatest intelligence coup of the Cold War.

1980XLS's picture

Fuck him.

Rubin, Greenspan, & Summers too.

Geniuses  that planted the seeds of the 2008 meltdown  with the repeal of Glass-Steagal,and the ousting of Brooksley Born  from the CFTC

 

http://www.pbs.org/wgbh/pages/frontline/warning/

 

https://www.youtube.com/watch?v=70LGVnr4mYU

innertrader's picture

The Billary couple are responsible for fraud, sexual assault, rape, bribery, so many various sell outs it's astounding, murder, Treason and other unlimited criminal acts! Yet here she is running for POTUS and more than 1,000 people will actually vote for her. Now I know exactly how Rome fell....... AMAZING! AND you and I have let it get to this point!

Bay Area Guy's picture

As noted above, Bill benefited from the dot.com boom.  But Bill also benefited from having a chairman of the Federal Reserve that was in his bubble blowing prime.

giggler321's picture

No mention of Ronald Reagan and is last term in office with his unfriendly and unpopular policies which shaped the economy into a surplus in the next comming administration.  The terms they serve are to short to see fruits of their labor but the next guy gets all the bounty.  Bill thereafter spent his time bonking dorks on the presidents desk while letting his wife run the place.  Shes back for more but this time its hot wars on her mind...

TnAndy's picture

I'M SO SICK AND TIRED OF HEARING ABOUT THE CLINTON 'SURPLUS'..... THERE WAS NO GODDAM "SURPLUS"..... something the Hildabeast brought up again last night, and often mentioned by the media.

What happened was a shift of excess social security tax into the general fund, without a corresponding NOTE OF THE DEBT owed back to social security....a FREAKING "smoke and mirrors" surplus.....borrow from one source and disregard the FACT IT WAS BORROWED !!!

The last REAL SURPLUS.....where you have more revenue than spending.....happened in the 50's under Eisenhower....and it was small.

Go to http://www.treasurydirect.gov/NP/debt/current and "fact check" it for yourself.

JeffB's picture

Treasurey Direct apparently doesn't go back to 1993. At least it's not working for me.

 

TnAndy's picture

Jeff,

 

Left hand side of the page, Reports box, click on "historical debt outstanding"......you can look at it back to 1790 in 50 year blocks.

 

andy

optimator's picture

He simply took the money from the SS Fund and put in an I.O.U., and Trump is old enought to remember that so why doesn't he mention it next time it comes up?

TnAndy's picture

Because:

A.  Trump is simply a Democrat plant designed to look so bad and egotistical as make make Hillary seem less likely to make you puke.

OR

B.  He really IS a bumbling, incompetent idiot with an ego that won't let him take advice from anyone, who thinks all he needs to do is waltz out on stage, repeat everything twice so "you get it", and all will be fine.

Either way, we have truly reached the bottom of the barrel in choices and surely the US as we know it is about over.

Jeffersonian Liberal's picture

And the congress being taken away from the Dems and replaced by Republicans riding in on their "Contract with America."

Yes, they broke that contract on nearly all its points. But one item they did achieve and that was cutting taxes and balancing the budget.

Ordinarily, Bill "I rape women and sold missile-guidance technology to the ChiComs" Clinton the Democrat would have opposed this vociferously. But he had already been embroiled in too many scandals (that intern thing, for example and impeachment) to fight the Republicans on their issues.

He had to go along with it. When it succeeded, he tried to take credit for the prosperity.

undercover brother's picture

I'd rather allow Clinton to own just a bit of that 1990s boom, otherwise it could be suggested that Obama wasn't responsible for the 2008-2016 economic disater/malaise we find ourselves in.  

RopeADope's picture

Obama is not responsible for the post 2008 malaise. The groundwork for our current situation was laid by the Clintons back in the 90s.

Iconoclast421's picture

Cheap oil, favorable demographics, and several technology based productivity enhancements... that is what was chiefly responsible for the 90's boom. A monkey could have been president during that time. We would have been better off with a monkey, because a monkey wouldnt be interested in blowing up federal buildings in '95 or the WTC in '93, or WACO, or Ruby Ridge, or shooting down TWA 800.

silverer's picture

Sure. Convince his legion of fanatics of he didn't do the economy. By the way, a bunch of those dumb asses believe that under Bill we had no "debt". That's because during his term the Republicans under Newt G. actually crafted a budget that decreased spending, producing a budget surplus. Not the same as the national debt, stupid dems. Then the Republicans caved and turned into assholes themselves. Just so you know, the national debt was 4.0 trillion when Bill took office. About 5.3 trillion when he left. Those couple of + 2 billion budget surpluses were nice, but that was the end forever of budget surpluses for the US. It's now virtually impossible to balance the budget.

TnAndy's picture

You can have a budget surplus anytime you want.....simply do more of what they did in the 90's......ignore what you owe, or move it "off budget" (lastest trick).   The 'budget' and any surplus or deficit is a purely imaginary number that has nothing to do with the real debt.

Budnacho's picture

the commercialization of the internet.....more than ANY of the above this one factor alone led to the booming 90's.....we could have had a dead hamster for prez and gotten the same returns...probably better...

 

Dead Hamster 2016....once more around the wheel for Freedom!

Hype Alert's picture

No mention of the spending for Y2K.  Many companies just junked their old equipment and purchased upgraded hardware and operating systems.  Bigger systems had to be analyzed, tested, recoded and tested again.  We spent big bucks on renting a duplicate company wide size system so we could restore a backup, set the date to 12/31/1999 and then test the code as the zeros rolled over.  Yeah, way to go Bill.

Michigander's picture

His key factors are all horse shit. Bill CLinton rode the dot com bubble and took credit for it. Period.

DirtySanchez's picture

Mr Clinton, more than anything else, was a student of the redistribution of assets in the former Soviet Union.

The Russian oligarchs literally took state assets, i.e.; military, arms,media, oil,mineral,banking,transportation,etc... and privatized them, with state approval. Thus, Russian insiders got obscenely wealthy and powerful by empowering and enriching their allies.

The Clinton's first, next, W Bush and his cronies, then Bozo and his flunkies have followed.

The jew central bankers take a lot of heat, but they are merely doing the dirty work for the powerful.

The establishment class in the USA was conceived in the early 1990's and we witness in horror as the abortion that was created now engulfs us all.

This will not end well.

 

 

 

monad's picture

He and Gore did everything they could to destroy the thriving middle class.

1980XLS's picture

At Least Gore invented the internet so the banksters had the new technology to fleece the sheeple Dot Com