Down with the Fed! 4

From Mauldin Economics: Things That Make You Go Hmmm…

If you jump to the 27:00 minute mark of this edition of The Charlie Rose Show, you will find an excellent interview with David Stockman about his wonderful recent book, The Great Deformation. Stockman finally gets the platform he deserves with Charlie Rose, and I urge you to watch him explain why the Fed is a perennial “bubble machine”. Stockman’s takedown of Paul Krugman alone is worth the price of admission — though even the normally neutral Rose can’t resist taking a shot at a former establishment insider turned outsider.

Posted under Commentary, Economics, United States, Videos by Jillian Becker on Tuesday, April 15, 2014

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This post has 4 comments.

  • Don L


    I loved Rose’s comment about Krugman…”Just because he was wrong then doesn’t mean he’s wrong now.”. ‘Twere it I, my come back would have been, “Can you name any instance or topic about which Krugman has ever been right?”. In fact, Charlie’s comment that he’s had all these intelligent and expert people on his show also requires asking what, if anything, this illustrious group has been right about? Nada!

    The answer is that over the last 100 years, there has not been one school of economics, except the Austrian school, which Stockman now advances, that has ever been correct with any economic analysis, prediction or implementation. There isn’t any school of economics, again other than the Austrians, that can explain the phenomena of stagflation – an economic eventuality that is impossible, yet has happened and is happening: recession with rising prices.

    And, Stockman’s discussion of the FED and Greenspan and, especially, Bernancke was right on. They are dangerous. And, what is criminal, they personally know that what they are doing as the FED chair is destroying lives for the benefit of member banks.

    What Stockman was saying, if your not familiar with the Austrian concept of the business cycle, is that had the wall street banks been allowed to fail…the great recession would be over by now. Honest rates are rates set by people interacting willingly and agreeably in markets. It’s a two party scenario. The FED intervenes and becomes a third party and a win win becomes a lose, lose gov’t wins situation as it sets interest rates.

    When people save, money is available and rates fall as supply outpaces demand. And, when people aren’t saving and money is tight, interest rates rise…it’s basic supply and demand. When the FED forces rates down below honest free market rates…it sends the wrong signals to business. Low rates says their is money available to consumers…they are delaying purchases…so large investment in plant & machinery and RE development (big ticket stuff) is understaken because rates are low and when the large investments come to be completed/built…consumer funds will be available to buy what can be produced. WRONG!

    There are no savings…the plant is unsupported, the homes can’t be purchased. Billions of bad investments because the FED played with the rates. With this recession all manner of wrong explanation is given to hide the FED’s doing. There would never have been a housing crisis if the interest rates were free and honest…notwithstanding the political push to not check docs or credit. The demand for money would have made the rates out of sight even for adjustables.

    Anyway, thanks Jillian…good post!!!

    Oh, again, I present the Peter Schiff Was Right Video. He’s laughed at and scoffed by the Charlie Rose intellectuals and economic experts…but Peter, the Austrian economics guy, was right.

    • Jillian Becker

      Peter Schiff was soooo right. I hope the others all choked on the egg that smothered their arrogant faces a short time later.

      • Don L

        Unfortunately, they escape responsibility or accountability. Including the supposed Fair & Balanced FOX, the failures are continually trotted out as experts – let’s all support central planning – and the guy, Peter Schiff, and other Austrian economics adherents, are ridiculed and ignored.

        Here is the only video of any one of them being called to account. Amazingly and horridly, it’s on the Bill Maher show. Gag and sorry. The video recaps the original video and then the ignorance of Laffer, Reagan’s economic architect, is revealed…that’s pretty telling!

        Laffer is a central planiing socialist…a 3rd-way guy – a fascist who doesn’t understand that there is no such thing as a little bit of socialism. His curve maximizes revenue to the government…not a consumer/tax payer benefit. Most of what he said in this video is gibberish. And, what wasn’t said was that the FED was behind the collapse. They never give away the goose that lays the golden egg of corruption and graft.

      • liz

        Interesting how Schiff is ignored and ridiculed by all sides.
        Sort of like how Rand is ignored by the Right because she’s an atheist, and ignored by the Left because she’s a capitalist.
        Schiff is ignored by all because whether right or left, theyre all central planners.