Obama was down seven points in the polls in September 2008, when suddenly we had to give bankers a trillion dollars of taxpayer money and put Obama in the White House – or the world would collapse.
In his upcoming book, The Great Deformation: The Corruption of Capitalism in America, Stockman lays out how we have devolved from a free market economy into a managed one that operates for the benefit of a privileged few. And when trouble arises, these few are bailed out at the expense of the public good.
By manipulating the price of money through sustained and historically low interest rates, Greenspan and Bernanke created an era of asset mis-pricing that inevitably would need to correct. And when market forces attempted to do so in 2008, Paulson et al hoodwinked the world into believing the repercussions would be so calamitous for all that the institutions responsible for the bad actions that instigated the problem needed to be rescued — in full — at all costs.
Of course, history shows that our markets and economy would have been better off had the system been allowed to correct. Most of the “too big to fail” institutions would have survived or been broken into smaller, more resilient, entities. For those that would have failed, smaller, more responsible banks would have stepped up to replace them – as happens as part of the natural course of a free market system:
David Stockman: How Washington DC and The Fed Sacrificed America for Wall Street | Peak Prosperity
It was the ultimate “never let a good crisis go to waste” and it opened the door for fundamental transformation!
By prolonging the bottoming out of ass-wipe organizations, the left has seized what they need, especially with the MSM rat bastards in tow.
Without the internet slowing their progress, we’d have been using our ammunition a long time ago!
Article has went offline — whole site. Catch it in Google Cache!
Climate Change Endgame In Sight?
We need a constitutional separation of bank and state.
Bernanke was a Bush appointment.
Bernanke was appointed by GWB, but he was kept on by Obama, for one simple reason: Bernanke will do anything to keep his master happy. Thus, Bernanke is bought and paid for. At least when Bush was President, Bernanke was somewhat prudent. But from Bernanke’s standpoint, the game has now changed.
Bernanke is currently printing money at the rate of $80 Billion+ per month! No economy can endure that for long. A crisis will come. Then Obama, with Bernanke as his enabler, will step up and “save” the country — by severely limiting everyone’s freedom, economic and otherwise.
The bankers, as usual, will cash in. Bernanke is one of them. And don’t think that this Administration didn’t sit up straight and pay close attention to Cyprus: depositors there had up to 80% of their savings arbitrarily confiscated — only one week after the government assured them that their savings would never be expropriated, because their deposits were ‘insured’.
A terrible precedent has been set; governments are now able to steal depositors’ savings. And who will stop them?? Who stopped the EU from robbing the depositors in Cyprus? Answer: no one. No government even criticized the Cypriots’ illegal expropriation.
Government bureaucrats everywhere are salivating at the thought of $Trillions in private savings accounts. Just about every government on this planet is flat broke. Cyprus demonstrated an easy fix, which allowed gov’t bureaucrats to keep their jobs: simply steal the depositors’ money! From a bureaucrat’s point of view, what’s not to like? The King needs money. Take it!
There is a plan to this apparent madness, and it is as plain as the nose on your face. Don’t listen to what they say. Look at what they do.
I totally agree that QE is grossly irresponsible. Why do you think the Dow has just broken through its all-time peak? It’s not justified by improved fundamentals; it’s purely a result of excess liquidity.
Now we just have to hope that some of that 80 billion dollars a month will “trickle down” to the average American to buy groceries, pay for healthcare and utilities, and settle the mortgage instalment.
Not to worry, the extraordinary economic genius savior is going to set a whole new generation straight…
“(CNSNews.com) – President Barack Obama, who has increased the national debt by $53,377 per household, has proclaimed April “National Financial Capability Month,” during which his administration will do things such as teach young people “how to budget responsibly.”
I continue to be amazed.
A couple of big companies go bankrupt and the world’s finances crash into crisis in 2008.
Five years on every major western government, and who knows how many others, is either bankrupt or propped up by enormous debt (to whom ?) and we have a stock market rally ??
Speaking of bailouts, when you finally run out of other people’s money to spend, you do lose.
“A judge accepted the California city of Stockton’s bankruptcy application on Monday, making it the most populous city in the nation to enter bankruptcy.
U.S. Bankruptcy Judge Christopher Klein said the bankruptcy declaration was needed to allow the city to continue to provide basic services.
“It’s apparent to me the city would not be able to perform its obligations to its citizens on fundamental public safety as well as other basic government services without the ability to have the muscle of the contract-impairing power of federal bankruptcy law,” Klein said.
The city of nearly 300,000 people has become emblematic of government excess and the financial calamity that resulted when the nation’s housing bubble burst.”
Still wondering how Michigan can handle Detroit, yet California can’t handle Stockton???
Is it because California has multiple shitholes in the pipeline?
Speaking of frauds…
“BREAKING: James Hansen to leave NASA to be full time activist”
“At the same time, retirement will allow Dr. Hansen to press his cause in court. He plans to take a more active role in lawsuits challenging the federal and state governments over their failure to limit emissions, for instance, as well as in fighting the development in Canada of a particularly dirty form of oil extracted from tar sands.
“As a government employee, you can’t testify against the government,” he said in an interview.”
Homer may not have found the missing heat, but he sure knows where the gravy train is. Move over Al, you have seriously delusional competition for stupid people’s money.
April 1 has nothing to do with this announcement?
Anthony says not.
“I checked first, thinking this was some April Fools joke, it appears legit. (h/t to Tom Nelson and Skiphil)”
I’m gunna celebrate his departure tonight, with a nice glass of white wine.
Here’s to you Jim Hansen. The most effective Shylock since, well, Shylock!
You’ve successfully bled the world dry with your carbon tax scam. I bet you end up working for the subsidiary of a London carbon credit financial outfit – Goldman Sucks?
You’ve out-Madoffed, Bernie Madoff. You’ve out Enroned Enron!
The morally bankrupt man will not make any challenges in court, as he’d actually need to back up his hypothesis and stand in front of real scientists and factual data. He’ll pull an Al Gore to the max and allow the MSM to back him up with full coverage till the end…
I really want to pull my 401K out, but can’t. The libs are absolutely planning to steal it. I’m now pumping money into Silver, RE, and other liquid assets. I’d like to buy some diamonds, and some Canadian or Swiss Gold/Silver, Canadian Oil Royalties, and Foreign farmland. But I can’t move quickly enough.
It is very difficult for the average person to protect themselves from a corrupt system. Most don’t have enough assets to diversify.
You have to imagine those 1.6B hollowpoints Janet bought are probably related to this. When do they plan to pull the trigger?
As long as the QE continues, the Dow and NASDAQ will keep on rising, so pump your cash into the markets. When Bernanke announces an end to QE, it will still take three months for all that liquidity to filter through the system, so you will have plenty of warning to sell up your position before the crash comes.
QE can’t end until the government stops over spending which it won’t do. So the process may be pushed to the point of collapse. At that point it doesn’t matter where your liquid assets are held.
Why was Obama injected into this article?
Can’t speak for Steve, but O and his advisors had no second thoughts in giving the unions (GM-Chrysler) other peoples money, nor did they make any objections to spreading the stimulus to their pals with 5% going to the poor & needy.
Wealth redistribution was brought to the forefront and the theme fits the agenda.
A good crisis is just what’s needed for the fundamental transformation, I suppose.
What do you think he meant by fundamental transformation and how do you suppose he would go about it?
Obama wasn’t even elected in September 2008 — it seems a bit unfair to push him into Steve’s headline.
I also find it ironic that the author of the book, Mr David Sockman, was director of the Office of Management and Budget in the Reagan administration when Reagan spent an a much larger amount of money, percentage wise, than Obama or even George W as demonstrated by this data below.
The growth of government spending is at its lowest during the current administration, averaging 1.4% per year through to fiscal year end 2013 (Sept. 30).. Here they are since the first Reagan term:
Reagan 82-85 8.7% average annual increase
Reagan 86-89 4.9% average annual increase
Bush Sr. 90-93 5.4% average annual increase
Clinton 94-97 3.4% average annual increase
Clinton 98-01 3.9% average annual increase
Bush jr. 02-05 7.3% average annual increase
Bush Jr. 06-09 8.1% average annual increase
Obama 10-13 1.4% average annual increase
Looks like the Republicans like spending money more than the Democrats.
If you’re going to use such a silly metric, then you can’t attribute debt levels ending ’09 to Bush if he left office in January ’09. US national debt at the end of ’08 was approx. under 9 trillion. Now it’s over 16.5 trillion. How does that square with your claim that he made things worse by only 1.4% ?
This is the way budgets are calculated. Obama’s numbers will continue until the end of 2013. But even combing Bush’s last numbers with Obama’s, they are still below Reagan’s first numbers.
You can play budget numbers until you get a headache. I just find it unfair that Obama was injected into a story that takes place before he was elected and was written by someone who bears a great deal of personally responsibility for the biggest spending — by percentage — of any president in the past 35 years (at least).
Obama signed off on the TARP’s and Operation Twist 1 and 2 and QE 1, 2 and 3 as well as 5 budget deficits exceeding $1 trillion each. He hasn’t cut government spending in any meaningful way (barring easter egg hunts). But then no left winger totalitarians ever do.
Obama has a great fiscal record. LOL
As I said, you can play budget numbers until you get a headache, but still it was unfair and unnecessary to include Obama into this story.
I think true democracy is very fair. Especially combined with freedom of speech.
These people, including Obama, want to rule the world! Meanwhile they are puppets for the ‘pezzonovante’ who are pulling their strings. When they are caught saying one thing and doing another, I think it’s the epitome of fairness to call politicians to account. No matter what side they come from. Many people call them the “demopublicans” saying it’s really a one party state in the US (so to the UK and Australia). I’m not completely convinced, but both US political parties have demonstrated an amazing ability to spend money, that they don’t have, that all US citizens will pay back with interest for ever. Or watch their dollar’s purchasing power be trashed. I’m betting they’ll continue to trash the dollar.
Too, You’re not going to be taken seriously if I show you the actual numbers and you defend your bullshit percentages by replying vaguely “this is this way it’s done”. I’m no defender of Bush’s economic policies but it’s absurd to say Obama is better than Bush when he just multiplied all of Bush’s mistakes and added his own.
“Of course, history shows that our markets and economy would have been better off had the system been allowed to correct. Most of the “too big to fail” institutions would have survived or been broken into smaller, more resilient, entities”
Bullshit. The entire system would have gone down in a flaming heap. The scandal is not what was done to rescue the banking sector at the time, but how it was allowed to get itself into that mess in the first place. And that failure is and continues to be directly attributable to government + Fed policy.
And the gatekeeper in New York, Timmy boy!
…the giant vampire squid’s left eyeball.
Bullshit. The entire system would have gone down in a flaming heap.
That’s our last best hope…the whole regime just goes away Soviet Union style.
I guess we’ll see.
In the long run you may end up with a better planned city if you burn the old one down. But I suspect most of the people living there won’t be happy with such an approach in the medium term.
And you know, there is no law of nature that states that if the existing system collapses it will be replaced with a purer Capitalist one. The replacement could just as readily be fascist or communist.
the existing system collapses it will be replaced with a purer Capitalist one. The replacement could just as readily be fascist or communist.
I am sure the dice have been loaded against us, but the phase transition would at least open up alternative possibilities…and the Revolution does not operate in a void.
Both the American and French revolutions were turned against them, at least for a time…and the collapse of the Soviet Union has, as of now, seen them lose another host of nations for that matter. Thing don’t always go according to plans.
And the opposition is in play…
You forgot to mention the Chinese and Russian revolutions. The French Revolution lead to the Reign of Terror and the Napoleonic Wars where the French people ended up being ruled by an emperor. (Someone who we would now describe as a dictator or fascist.)
Well I agree with you, and I suspect that (polpot, robespierre, lenin) is what they have planned for us…I just see more wriggle room in a total collapse scenario.
Check out this great comment on an article at Atimes…