Thread: David Stockman on TARP, the Fed, Ron Paul and Reagan [FULL VERSION]

Good find, LAM.

I'll spread the word.

Smoothy....Milton Friedman fucked us with his 8T dollar "mistake" in regards to his monetary theory which was implemented in the 80's under Reagan.

here's a little tid bit that goes along with that:

"A third reserve currency is just what America needs. As Prof Micheal Pettis from Beijing University has argued, holding the world?s reserve currency is an ?exorbitant burden? that the US could do without.

The Triffin Dilemma ? advanced by the Belgian economist Robert Triffin in the 1960s ? suggests that the holder of the paramount currency faces an inherent contradiction. It must run a structural trade deficit over time to keep the system afloat, but this will undermine its own economy. The system self-destructs.

A partial Gold Standard ? created by the global market, and beholden to nobody ? is the best of all worlds. It offers a store of value (though no yield). It acts a balancing force. It is not dominant enough to smother the system.

Let us have three world currencies, a tripod with a golden leg. It might even be stable."

"No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."

Originally Posted by Swiper

"No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."

remember that the District of Columbia is not a state, it is a legal federal administrative division and technically separate from the United States.

Originally Posted by LAM

remember that the District of Columbia is not a state, it is a legal federal administrative division and technically separate from the United States.

it is not part of any individual state, but it is a part of the united states. your argument is a cop out. He has a valid point.

Originally Posted by bio-chem

it is not part of any individual state, but it is a part of the united states. your argument is a cop out. He has a valid point.

it's called the Residence Act of 1790 which allows the creation of a sovereign federal administrative district , Washington DC is a sovereign state. half of the district follows the laws of VA and the other half the laws of Maryland with Congress having full authority over the district. it was specifically designed that way so that the district could assume states debts.

my argument is documented US legislative history. which one of the 50 US states is Washington DC again?

The Fifty States (maps, flags, geography, population, statistics) — FactMonster.com

Originally Posted by LAM

it's called the Residence Act of 1790 which allows the creation of a sovereign federal administrative district , Washington DC is a sovereign state. half of the district follows the laws of VA and the other half the laws of Maryland with Congress having full authority over the district. it was specifically designed that way so that the district could assume states debts.

my argument is documented US legislative history. which one of the 50 US states is Washington DC again?

The Fifty States (maps, flags, geography, population, statistics) — FactMonster.com

the constitution is the supreme law of the land. isn't dc on US soil and operated by the us govt?

Originally Posted by Swiper

the constitution is the supreme law of the land. isn't dc on US soil and operated by the us govt?

as I stated learn the role of the federal district and you might understand how D.C differs from the other U.S states. the US constitution may be the supreme law of the land but it certainly isn't the ONLY law used to run the Federal and state governments. that would be like saying if it's not in the US Constitution then we don't have to do it which is laughable.

learn the difference between a U.S state and a federal district as they are not the same.

Originally Posted by LAM

Smoothy....Milton Friedman fucked us with his 8T dollar "mistake" in regards to his monetary theory which was implemented in the 80's under Reagan.

I've read up on and watch interview of Friedman.

But what is the "8 Trillion dollar mistake."

here's a little tid bit that goes along with that:

"A third reserve currency is just what America needs. As Prof Micheal Pettis from Beijing University has argued, holding the world?s reserve currency is an ?exorbitant burden? that the US could do without.

The Triffin Dilemma ? advanced by the Belgian economist Robert Triffin in the 1960s ? suggests that the holder of the paramount currency faces an inherent contradiction. It must run a structural trade deficit over time to keep the system afloat, but this will undermine its own economy. The system self-destructs.

A partial Gold Standard ? created by the global market, and beholden to nobody ? is the best of all worlds. It offers a store of value (though no yield). It acts a balancing force. It is not dominant enough to smother the system.

Let us have three world currencies, a tripod with a golden leg. It might even be stable."

I'll look into these, thank you.

I currently have time on my hands for a month. Cheers.

Originally Posted by LAM

it's called the Residence Act of 1790 which allows the creation of a sovereign federal administrative district , Washington DC is a sovereign state. half of the district follows the laws of VA and the other half the laws of Maryland with Congress having full authority over the district. it was specifically designed that way so that the district could assume states debts.

my argument is documented US legislative history. which one of the 50 US states is Washington DC again?

The Fifty States (maps, flags, geography, population, statistics) ? FactMonster.com

When did I say it was a state, or part of one of the states? What I said is he has a valid point. not one to be dismissed as you did.

See, that is your problem LAM. you don't read other peoples posts. you assume, and then try in your own way to educate, but the problem is you were off from the start because of your original poor, and incorrect assumption.

Good post LAM. For such a non-liberal I am shocked you support him. Though he does spell everything out clearly.

Originally Posted by oufinny

Good post LAM. For such a non-liberal I am shocked you support him. Though he does spell everything out clearly.

I despised Stockman when he was Reagan's budget chief (obviously seeing right through supply-side econ at the time) but he has seen the folly of his ways and is trying his best to right them by telling things the way there ARE and how we came to be in the economic situation we are in.

I have bought all of his books and read anything of his on the Internet that I find. got to give props to just about anybody that admits they were wrong in the past and actually puts effort into explaining themselves especially people in power at his level and above. I consider him a good man, he has stopped the lying and deceit and in the US that's as good as it gets for an ex-politician.

More from Stockman, who has a book coming out tomorrow:

--

Stockman Warns of Crash of Fed-Fueled Bubble Economy
By Richard Rubin - Apr 1, 2013

The U.S. economy is in a bubble inflated by 'phony money' from the Federal Reserve and will burst within a few years, warned David Stockman, who was budget director for President Ronald Reagan.

In an essay published yesterday in the New York Times (NYT), Stockman wrote that the Fed's quantitative easing policies following the credit crisis have flooded stock markets with cash even while the Main Street economy remains weak. The combination, he wrote, is unsustainable.
Enlarge image David Stockman

David Stockman, who was budget director for U.S. President Ronald Reagan, is the author of The Great Deformation: The Corruption of Capitalism in America, which will be published April 2. Photographer: Douglas Healey/Bloomberg
Fed Has Become 'Serial Bubble Machine'

April 1 (Bloomberg) -- David Stockman, former director of the Office of Management and Budget under President Ronald Reagan, talks about the impact of Federal Reserve policy on financial markets and the outlook for the U.S. economy. Stockman, author of "The Great Deformation: The Corruption of Capitalism in America."

April 1 (Bloomberg) -- Alfred Broaddus, former president of the Federal Reserve Bank of Richmond, talks about the Fed's ability to wind down its stimulus measures and Chairman Ben S. Bernanke's future at the central bank. Broaddus speaks with Sara Eisen and Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

"When it bursts, there will be no new round of bailouts like the ones the banks got in 2008," wrote Stockman, a former senior managing director at Blackstone Group LP (BX) and a former Republican congressman from Michigan. "?Instead, America will descend into an era of zero-sum austerity and virulent political conflict, extinguishing even today's feeble remnants of economic growth."

Stockman, 66, is the author of "The Great Deformation: The Corruption of Capitalism in America," which will be published tomorrow.

He rose to prominence during the early 1980s in the Reagan administration while pushing supply-side economics, which held that income tax cuts would boost economic growth and raise more revenue for the government.


Trojan Horse

Stockman quickly turned on supply-side economics. He said the benefits would only trickle down to the non-wealthy and that the tax plan was always a Trojan horse for accomplishing the primary goal. That objective was bringing down the top income-tax rate to 50 percent from 70 percent.

He resigned as budget director in 1985 and published a book criticizing the Reagan administration.

In an interview today on Bloomberg Television, Stockman said, ?We?re borrowing money and burying the future generations in debt.?

Entire: Stockman Warns of Crash of Fed-Fueled Bubble Economy - Bloomberg