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Stockman: "Ron Paul Is Right: The Fed, And The Lunatics That Run It, Are The Heart Of The Problem"
Former Reagan OMB Director David Stockman was 'allowed' on CNBC this morning - much to their chagrin now we suspect - and espoused his own brand of truthiness, starting with this epic tirade:
"Ron Paul is the only one who is right about the Fed, and the Fed is the heart of the problem. They have destroyed the capital markets and the money markets; interest rates mean nothing; everything is trading off the Fed and Wall Street isn't even home - as it's now a bunch of computers trading word-clouds emitted by this central banker and that"
In this environment, he goes on, everyone is being given the wrong signal - i.e. the Ryan/Romney campaign is abnout restoring vibrant capitalism; how can you do that when the financial markets are dead - the lifeblood of a capitalist system. And that is the problem today.
An excellent discussion ensues diving into the lack of fiscal discipline (that is enabled by a Fed ZIRP) as "[politicians] will never do it when you can keep borrowing free-money forever" and summed up nicely with this subtle sentence:
"The Fed (and the lunatics that run it) are telling the whole world untruths about the cost of money and the price of risk."
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I'm thinking digitized $ so they get every cent of tax that is due them.
From where I stand, everything looks to be pretty well under control, relative to world history.
There is no plan to crash the system.... crash of the system is given once the equation is used... the only question is how big the system becomes before the collapse.... and how big the collapse is... ie the amount of body bags needed. Last time 100+ million, this time, my guess 1-3 billion, if nukes are use another dark age or extinction.
Am all ready IC,
i have told my wife to bake cream filled donuts with chocolate icing to place them as mines infront of those blue armored hammers as one suggested earlier.
i hope i will fullfill my part
/sarc
Those blue, armored hummers are called 'plebe smashers'.
Romney also belongs to a cult that passes itself off as 'christian' while having nothing in common with the christian religion.
If he lies about his most basic beliefs, who would believe him on anything else?
Romney also belongs to a cult that passes itself off as 'christian' while having nothing in common with the christian religion.
If he lies about his most basic beliefs, who would believe him on anything else?
Dude, he doesn't know he's in a cult,if you believe in what you were raised to believe, 9-10 times, you follow the same path.
You do him an injustice calling him a LIAR.
And, no, I am not Mormon.
Obama claims to be a Christian, when most anyone w/half a brain knows he is a MUSLIM.
Name one POTUS, that THOUGHT there were 57 states in the USA.And the SO called Christian Church he attended for years, teaches Black Liberation Theology.(check that crock of horse patties out).
You can almost hear them screaming.. "Commercial break, not now, 30 seconds ago!!"
The actual heart of the problem is the financial system itself, which inevitably leads to increased money supply and speculation.
STOCKMAN ALSO SAID:
QUOTE FUCKING QUOTE
REPUBLICANS BANKRUPTED AMERICA
And you clowns want to fire obama and hire romney, mister wall street banker, to REPEAT SAME???
DUH BITCHES... TAKE YOUR REPUBLICAN HEAD OUT OF YOUR CONSERVATIVE ASS.
CNBC anchors must be on a low-IQ diet.
There's not too many vitamins left in The Oracle's old seed for Becky Q.
stockman is completely ON POINT.
BENANKE SHOULD BE FIRED ON DAY 1 .. AMEN.
Sadly, he can't be, as the central bankers are appointed for 12 year terms.
As such, I would have him arrested under the Coinage Act of 1792. It would be nice to see central bankers hanging in the streets.
What is sad is the whole panel of idiots that think just like him at the Fed.
I think a banker "necklacing" aka "goodyear special" would be very pretty. Especially if executed at night.
http://en.wikipedia.org/wiki/Necklacing
Fed Governors are nominated by the President and confirmed by the Senate for 12 year terms. The Chairman comes from their ranks, is nominated by the President, and confirmed by the Senate for 4 year terms.
I think his characterization of Wall Street as "the boys and girls who want a little more" is almost correct. He might have added ... who want a little more, don't give a damn about the future and say "screw everyone else".
Wall Street is made of spoiled perma children.
I like it when Stockman says "it is an abomination" referrring to the extereme low rates in place.....
I was thinking maybe he meant
" it is an Obama-nation"
a place where you pay money for people to keep your money.
David Stockman: some fucking sanity for a change. If Romney would get his head out of his ass, he'd take Stockman's advice, or better, solicit RP's support on all fiscal matters including dealing with the Fed and Treasury Dept.
Mitt, this isn't fucking rocket science. You'd win the election.
he'd say one thing (like a certain Kenyan Prez I know) and do the same shit as his predecessor
If Romney came out and said he would touch Medicare in the near future, then you could kiss FL goodbye and any chance of winning.
He lost Florida when he chose Paul Ryan (voucher boy).
Geezers don't care that it won't effect them. Geezers are, always, worried, terrified about their Grandson and his SS/Medicare.
They lost Florida, will probably lose Virginia again and diffinitely have lost Ohio since auto workers won't cross Obama.
He lost Florida when he chose Paul Ryan (voucher boy).
Geezers don't care that it won't effect them. Geezers are, always, worried, terrified about their Grandson and his SS/Medicare.
They lost Florida, will probably lose Virginia again and diffinitely have lost Ohio since auto workers won't cross Obama.
Re-Check on Fla, there are TONS of Jewish folks there, and Obama pissed them off royally..............
And thrust me Geezers do care..............they are old enough to remember when there were RIGHTS in this country.......Ryan will likley be enough to pull Ohio thru.Before that, it was definitely a lost cause.
+1. These days election are all about transfering wealth from the gov't to people receiving entitlements and wealthfare.
It does matter at this point. Even if entitlements were ended today, the USA is still bankrupt. No way to pay back the trillions already spent.
Land, beans, Guns and Gold.
Jeezus fucking Christ ... you still think Mittens would "save" America - with some "advice" from Ron Paul? Are you one of those people who thinks the Mafia could be "turned into a charity" if only Don Corleone would take some advice from Mother Theresa!?!
Dumb fucking sheep! (not just you, but the 8 people who've upticked you as well)
Gee thats a great idea promise SS to everyone unconditionally, take their money automatically out of their paycheck and then change the rules to not give it back to people who succeed in life and 'dont need it' after Clinton raided the SS fund to 'balance' the budget as debt continued to balloon. FIRE THEM ALL stop THEIR pension payments put THEM on Obamacare the cheatin' bastages and move election day to April 16th
PRESS RESET ALREADY for the sake of sanity
I'm in love. I would gladly pay more taxes if everyone's rates were raised.
What kind of economists do they have at the Fed and did where did Bennie learn Econ 101? He has essentially destroyed arguably the most important pricing mechanism in economics, the price of money.
So no one knows the true cost of money, so how do they make rational decisions? Obviously they cannot, and we end up with our present dilemma. No fiscal discipline, no economic growth and basic commodities (like gas and food) taking a larger share of the middle class budget. Add in around 17% real UE, 88M not in the labor force, 48M people on food stamps, healthcare costs rising at 12-15% per year, 60T in unfunded future entitlement liabilities and tell me how we work our way out of this?
Free money will extend this far longer than we thought possible, but at some point it just will not work anymore. What then?
sschu
Here is Bernanke's play book:
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm
**** But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.........(I love this part)....... A striking example from U.S. history is Franklin Roosevelt's 40 percent devaluation of the dollar against gold in 1933-34 ( he doesn't call it confiscation?), enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed, consumer price inflation in the United States, year on year, went from -10.3 percent in 1932 to -5.1 percent in 1933 to 3.4 percent in 1934***
But, Bernanke never gives an end to the story? He never explains where the economy or the state of the State will be when he employs his chichanery.
Now that he has actually done the deed, how will it end? Can it end? Will we have QE forever?
16 trillion in debt and counting!!! Where does it end?
I can't wait until we have wage inflation, I start making $250,000/year and my mortgage remains $787/month PITI.
The problem is the insuing tax cuts, for people making less than $250,000 will be meaningless when minimum wage is $120/hour.
Funny, I could have sworn people aren't making any more money than before they added trillions of new debt in the past few years. Prices go up on financial instruments (stocks, bonds, energy, PM's), wages and residential land stay largely the same and/or decrease.
Here is the other thing. If you think the economy is bad now or was bad when Volker put the hammer down in the early 1980s, you haven't seen anything yet. If they do what Stockman proposes, a 1930s type depression will ensue.
This is the dilemma, the economic and individual pain to "fix" the situation is far more than the people are willing to consider. Not sure, but I would guess a whole lot of small businesses and folks on the cusp would go bankrupt if they truly try to implement the policies he describes.
The opportunity was wasted in 2008-09. Good luck to the politician who says now is the time for austerity after bailing out Wall Street, GM, AIG etal.
sschu
Damn how did they let that guy on tv without cutting to commercial and setting him straight?
Romney Obama.... makes no difference, they all work for the same crowd. Peole are imagining things if they think the masters will not be served if a change is made.
Bernanke gone? Don't worry they will replace him with the next cock puppet.
If justice was applied equally and with proper recourse.
Ben Bernank would have been put to sleep or in jail along with all the other criminal zionist bastards who are hell bent on destroying not just America, but the whole god damn world.
And the fucking real irony is, it's fucking paper for fucks sake.
Half-witted fucking imbeciles.
Stockman oversaw the Reagan Revolution by increasing Defense Spending and cutting taxes. The FRBNY cannot raise interest rates because the Treasury will be unable to pay interest on the debt.
The only way out of this is to cut military spending 20% over four years, get rid of the cap on Social Security tax, place a Medicare tax on Capital Gains, let insurance companies operate across state lines and reform tort law. Can I please get my medical records digitized to lower my medical cost? Every Doctor I see wants to do the same test and it is costing my, self insured, employer a fortune. My doctor won't even send me test results. He says " I'll call you if we see anything unordinary."
It is time to default on our debt. Tell the NYFRB to go eat cake. Start acting like farmers and form cooperatives and get the Gov't out of our lives.
They should provide for the common defense and maintain Social Security and Medicare.
Why do we need cops when they shot more innocent bystanders than criminals?
helping - you have the absolute right to take possession of your own medial records. If you ask for them and are willing to sign a release, the medical provider MUST give you a copy of them, including outsourced test results and x-rays. I co-own a medical practice, so I am 100% certain of this.
Ten cents a page.
Look at the agreement you force your patient to sign before the Doctor will see them. I have the right? I might have the right but, I sure get tired of enforcing my rights. I get a bill from Lab Corp to pay $43 for blood work. I asked my Doctor ,many months before, to, please, send me a copy for my records. When I call the Doctors office I get a message machine. In called LabCorp and they tell me they can't send ME the results. I will have to ask my Doctor.
If you don't want to get sick. Don't see a Doctor. They will, definitely, make you sick. They don't make money off healthy people.
helping - yes we have patients sign a HIPPA notice.I assume you are in the US, so it is probably the same boilerplate language as everyone else's.
I don't honestly know if a lab must send you the copy of your results if asked, but I know they can. They do it as a matter of course in NH and ME.
If your doctor won't give you a copy of your records, at no charge, I'd find a new doctor. If they won't return your call, I'd go in face to face and get them. They can legally charge you for copies, but most do not. We don't. We might have when we used films for x-rays and only then just for those copies, but now that they are digital it's no added cost.
I know it is a bitch to be vigilant about this and to always feel like it is a struggle, but when we roll over, who wins?
I understand your final line. I myself haven't been to see a general practitioner in more than 5 years. But I don't think I'd get sick intentionally from one.
For the record, I am not one of those lunatics..........
Yes you're an entirely different lunatic ;->
Imagine if we had a Volcker coming in and raising rates by 1pct overnight ?? Tanking BITCHES ...
But still doesnt solve the problem of price control of interest rates through the fed
Imagine when the bond market starts pricing in the US debt properly. One percent overnight ... you bet.
No. Fucking. Shit.
Fuck it. Buy silver.
I hate how the douce bags have to CONSTANTLY interupt and attempt to inject either humor or hubris. Let the guy fucking talk! But no... Must take control of "my show".
This guy says no shit facts. Therefore not happening.
the truth gets 20 seconds, half of which is interrupted. then lies all day long. and lots of t&a and perfect smiles and sterile humor.
Agree with Stockman. But....SCOREBOARD. SP 1433.
Zimbabwe , Japan, and Wiemar Republic all think your looking at the wrong score.
Whoops. Japanese Finance Minister in career move. One way.
TOKYO (Kyodo) -- Financial Services Minister Tadahiro Matsushita was found dead at his residence in Tokyo on Monday, police said, adding they suspect the country's top financial regulator committed suicide.
http://mainichi.jp/english/english/newsselect/news/20120910p2g00m0dm0840...
Bernanke as a child...
http://www.trimbroker.com/zona_obchodnika//grafy/gr_bernanke.gif
This is what happens in a centrally planned economy. When people learn that the market is rigged, they leave the market.
One of the reasons that Uncle Ben is flooding the market with printed money is to reduce volatility in the stock market. Volatility can lead to a panic, and a panic would be disastrous in our weakened economic state.
People have adjusted to the existence of the Bernanke Put. Short-sellers, put purchasers and other bears have been burned so many times in the last two years by market-distorting liquidity injections. In response, they have left the building. Bears are useful, because they add liquidity to the market by standing willing to sell securities. This liquidity has been crowded out by the Fed’s action.
Investing has nothing to do with fundamentals anymore. All investors are attempting to front-run the Fed’s next rounding of money printing, and they have bid up the asset markets to near record highs. Expensive markets are risky markets, so paradoxically the Fed has actually increased systemic risk.
If the markets were still functioning and not dysfunctioning, short-sellers would have stepped in and provided the necessary selling pressure that would have tamped down the exuberance of the markets. This is no longer happening, and we are all the worse off for it.
While Uncle Ben thinks that he has pulled off quite the coup by purging volatility from the system, he has actually guaranteed that the next crisis, which will make the GFC look like a correction. Retail investors want no part of this and have been leaving the stock market slowly but surely over the past few years. Mutual fund outflows and declining ETF trading show that this trend has not abated.
This whole scenario is actually playing out like a Greek tragedy. Our protagonist is attempting to avoid fate, but the very actions he takes make this fate more likely and more catastrophic.
Bernanke is a student of the Great Depression. Bernanke is what is known as a “reflationist.” With 20/20 hindsight, reflationists believe that had the Federal Reserve of the 1930?s merely loosened monetary policy, the whole depression could have been avoided.
Reflationists are merely another version of interventionists that have taken over the intellectual mainstream. As such, all they believe in is intervention. The United States substantially eased monetary policy throughout the 30?s by running large budget deficits and devaluing the dollar.
A common interventionist trope is that if the intervention fails, then it wasn’t large enough. This is the road that Bernanke is leading us down. He believes that the problem with the monetary easing during the depression was that there was not enough of it, and now the only thing wrong with QE1, QE2 or Operation Twist was that we needed to more of it.
When you believe something for your entire adult life, writing papers, making speeches and teaching students these ideas, then it is way too late to change your mind at 58 years old. He keeps throwing money, our tax payer money, at our economic problems by purchasing assets from the banks and offering these same banks cheap financing. All the while, he never stops to consider that his actions are part of the problem.
Ultimately, the taxpayer is the one bearing the present costs of these dangerous policies. High gas prices are one effect of money printing. Another are these low trading volumes.
The taxpayer will also bear the costs of these policies after the next market crash. All of those securities on the books of the Fed will plunge in value creating a massive loss and unleashing the pent-up instability of the past few years.
Don’t worry about Uncle Ben. He’ll be fine. These cheap loans and asset purchases have guaranteed him a cushy job in one of the banks he subsidizes. It is the rest of us who will be cleaning up this mess for a generation.
dareconomics.wordpress.com
I agree with Stockman. Mittens & Co are a big wrecking crew, but he sounds a bit like one too. Cheney and TBTF was wrong. RPIR on this. When your problems aren't solvable it means something else is replaciing it; an epic shift to global govt & financial; ultimately centred in the Mid-east. The west is out.
damn good shit!!!
what a view....how bout it!
When money is easy to create, we must not be surprised when government not only gives itself the power to do so, but becomes addicted to the short term benefits. While Bush was a minor addict (in his approval of the GM bailout and TARP), BHO has taken to consuming air-backed money like he took to conuming pot while in his early years.
I can't agree with Ron Paul on this, the FED is not the heart of the problem. The heart of the problem are those who appointed and introduced the FED into the office and keep it running, that is, the US Congress, having failed to fulfill its constitutional obligation in conducting the monetary policy. The FED is just doing what it is allowed to do and if it's misusing its mission it does so because it can. Ron Paul's anger and objections are misdirected.
It's like opening the Pandora box. Pandora itself is not responsible for the consequent disaster but the person who opened it. Being angry with Pandora is simply ridiculous. One must have known what it meant to give all the monetary powers to a private cartel.
Why are guys like this missing in action in every administration... compare this guy with faggela Geithner... Mitt would do himself proud if he named Bill Black as AG, Stockman for treasury, Jim Grant to the Fed... ah, one can dream...
If you own physical PM's would you not vote for more spending & printing?
I love Ron Paul.
I hate O & Mit.
But under O or Mit the PM's will shine brightest correct?
Somehow, the American people have to become educated regarding:
Who is really running the country, and
how they are doing it.
As long as 90% of the population does not understand these realities, they are easy targets to be manipulated by the likes of Obama, Romney, or any other puppet the Banksters stick into public awareness. And even worse, they become major obstacles for meaningful change.
The Banksters hit a Home Run when they gained control of the main stream media.
Outside the USA we have to laugh at you "defending democracy" when you are not a democracy yourself.
Your system only allows Obama or Romney (+2 other no hoper wacko's) to be elected, none of which will be good for the elctorate.
You had the chance to select Ron Paul and save your own butt and chose no to.
So don't come crying in a few months when you find out the Presidential decider is no choice at all
I know how to take that smile off your face Josh.
I'm thinking you are in Europe somewhere.
U.S.taxpayers just borrowed trillions of dollars to bail you out.
I'm calling the loan!
Awwwww, why the long face?
BOHICA 2012
"How my G.O.P. destroyed the U.S. economy." Yes, that is exactly what David Stockman, President Ronald Reagan's director of the Office of Management and Budget, wrote in a recent New York Times op-ed piece, "Four Deformations of the Apocalypse."
Get it? Not "destroying." The GOP has already "destroyed" the U.S. economy, setting up an "American Apocalypse."
If there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. The nation's public debt ... will soon reach $18 trillion." It screams "out for austerity and sacrifice." But instead, the GOP insists "that the nation's wealthiest taxpayers be spared even a three-percentage-point rate increase."
In the past 40 years Republican ideology has gone from solid principles to hype and slogans. Stockman says: "Republicans used to believe that prosperity depended upon the regular balancing of accounts -- in government, in international trade, on the ledgers of central banks and in the financial affairs of private households and businesses too."
The voters of this country are for the most part complete retards looking for handouts.
ANY politician who takes Mr. Stockman's sage advice should consider his term in office a suicide mission.
WHY?????
1)The thieves in congress, elected by the retard McDonald's eating moochers, will not go along with ending the fantasyland life styles we have acclimated ourselves to. 2) Immediate firing/jailing of Bernanke and Greenspan, 3)Cutting defense budget by 1/3, 4)Ending Bush tax cuts entirely, and 5)Means testing Medicare, so those who can afford to, will pay, rather than rely on handouts.
All fiscally sound ideas; not a snowball's chance in hell of ever becoming reality unless Mitt plans on a 4 year sacrificial tour of duty. The current clown occupying the oval office is Never going to consider these ideas.
You might want to speak with John Galt.
My friends ask me, if I am going to vote and I politely say NO.
And they say "but you have to vote for the lesser evil otherwise you will not express you vote".
I politely note that if I do not vote, I am expressing my vote, by saying " I do not like any of the 2 candidates".
If only people understand that (but for that you will have to be intelligent enough), then the voters will be able to express their real rights.
Because what happens, when the president is chosen with only 10% percent of the possible votes ... is that a democracy, and than the real questions start to pile ...
Just to note, I would have voted if Ron Paul was on the list.
Much conversation has been said about voting for the lesser of two evils is still voting for same.
On the flipside if there is a candidate one deems more evil, is it possible to submit a negative vote for that candidate?
That might make the game interesting, just as the two-point conversion did for the NFL.
/sarc
Too bad there are only a few people with enough courage to speak the truth. This is what leadership is supposed to be about.
I'm still hopeful that one day a President, during his nomination speech, will tell the people the truth.
Like: 'Fellow Americans, I began my career as a public servant believing certain things were possible. That if only I was elected I could help turn this nation around. But..just seconds before coming out here I was brought back into a room where I was blind-folded and sat down in front of several men. These men then told me how things were going to work around here and how I needed to do what I was told or else...well, you can guess what else. I was basicaly told I have no real power and must present to the American people, and to Congress, exactly what I am told to present. I am telling you this now because I refuse to go along with this. I know my life will surely end but I believe it's about time people knew the truth".
or something to that effect. I get that it will most likely never happen but what a glorious awakening if it did.
How Tom Clancy-ish.
By the time anyone is even close to being able to run a serious campaign for the nomination of either party, they are already part of the group (at least figuratively) that sits down with the new president to tell them how it's going to go.
Yeah, you are probably right. They are groomed after all from the beginning. But what if right?
Who can disagree with Ron Paul or David Stockman per the Fed's criminal insanity? No doubt, it is nothing but instructive to see such language from insiders. Howver, neither of these respective Jeffersonians recognizes how their brand of "solution" is even more insane than the Fed's policy surely is. Truth is, though, if either advocated otherwise, then, surely, neither CNBC nor any other sold out mainstream enterprise (be it media or political parties) would give these men the time of day. It is because their cure is worse than the disease they find avenue for expressing their views. In my lifetime this trend goes back to Ross Perot and Sen. Gary Hart before that. Only presenting alternatives that are worse than the mainstream is a staple of Herr Goebbels continuing legacy.