The Gates of Berlin

For those of the tourists and tots who do not know who David Stockman was, this gentleman was President Ronald Reagan's budget director. Mr. Stockman was part of the triad targeted by the media for ruin, who included James Watt of the Interior and Ray Donovan who uttered the famous lines after those heinous liberals at Justice dragged him into court to "get Reagan" and the jury acquited him as innocent, in the words, "Now where do I go to get back my good name".

This was all part of the Buckley, Bush and Rockefeller RHINO's of the cartel softening up Reagan in the same way that they did Richard Nixon all to overthrow the Government of America.

The puppy press in that time smeared Mr. Stockman,  by stating that he wanted on school lunch programs to make ketchup a vegetable on the menu.
There was great fodder made of that ridiculous assertion as the press with the same attack as on Sarah Palin in vehemence went on to political rapine.

David Stockman took the burnt of the blows like all of these good men who were honest and were serving Ronald Reagan and Americans completely for America. It was criminal and is criminal in what was done to these gentlemen, as much as Linda Chavez when President Reagan tried to get her elected to the Senate and that ass Ed Rollins of the feudalcrats destroyed her campaign.

I would that each of you, as you ponder Mr. Stockman's book in knowing the realities he is speaking of in Americans have been lied to and robbed, to also note one thing as it is getting less and less noticable now as the Reagan people are dying. That reality is something missing from politics, and that includes Big Gulp Palin, who this blog is attempting to drag from the feudal brothel and wash this whore up to be presentable again, and that is, ALL of the Ronald Reagan people were and are titans in their presence.

Mr. Stockman was a young man in those days and not exactly thought of as a heavyweight like the inside group, but as they years have passed one notes that when he speaks now his words have immense weight to them, compared to what is on the political stage now, led by this Birther Obama Chin.

One does forget things, even in reviewing media files what Reagan's people were all about in Cap Weinberger, Richard Pearle, Bud MacFarland, Richard Secord etc... Yet when someone like Ed Meese weighs in on "law of the sea" that Obama was trying to pass to give up American rights, one hears Reagan speaking in that thunder and clash of lightniing in simply explaining "law of the sea" was another rapine of America in taking their work, technology and money and redistributing it to the 3rd world welfare state.

The Reagan people were gifted in cutting through subjects complex and telling you exactly the way it was. One gets glimpses of that in Mark Levin, but Levin bows to his Mockingbird Ashkenaz wages of lying to people just enough at times from sodomy to bio fuels to be outed as a liar serving someone else like Peggy Noonan or Ann Coulter.

Mr. Stockman might have his own verbiage of DEFORMATION, while I utilize STRANGULATION and the FEUDAL STATE, but his words are a thunder clap and lightning strike in simply and completely explaining all what has taken place, in exact ways that the legendary Milton Friedman spoke in teaching the ignornant about economics.

Ronald Reagan had the best people by God in the world and 30 years later, those people who were children then, still sound with that same great communication clarity.

Mr. Stockman does not address the wholesale Giethner Obama illegal running the stock market for bribes and revenue gleaning, in the US Treasury now the multi trillion dollar debt holder of stock margins, along with the using of US funds to create the Neo Roman and New Asian empires for spheres of rule, so he is either ignorant or intelligent enough to know if he spoke of those things he would end up like Andrew Breitbart, but he reality is David Stockman in a concise discourse explains what is wrong, what was wrong, and that nothing is fixed by Obama Bernanke, and the entire system is in worse shape, since the second 9 11 economic attack on America in the 2008 Obama Super Depression which installed him from the Gates of Berlin to ruin America as a competitor to the global feudal state.

It is at times like this that I miss Ronald Reagan and his Americans. They were leaders and that is they the Rovians and Obamaniacs have deprived America of them. One hears in them leadership compared to the lies of Obama, McCain and whatever else is puking out deceptions as the minders in the media like Mark Levin rant about STATIS and other uncomprehensible terms to cloud American minds from that shining city on a hill which spoke a concise America language all could comprehend.

I post Mr. Stockman's interview below, but offer that you at least click on the link as traffic flow assists paying the bills on some sites who advertise. It certainly is better to help a page which produces David Stockman than some Ulsterman type insider disinformation.

nuff said


agtG

DAVID STOCKMAN: We've Been Lied To, Robbed, And Misled

Adam Taggart, Peak Prosperity
 Then, when the Fed’s fire hoses started spraying an elephant soup of liquidity injections in every direction and its balance sheet grew by $1.3 trillion in just thirteen weeks compared to $850 billion during its first ninety-four years, I became convinced that the Fed was flying by the seat of its pants, making it up as it went along. It was evident that its aim was to stop the hissy fit on Wall Street and that the thread of a Great Depression 2.0 was just a cover story for a panicked spree of money printing that exceeded any other episode in recorded human history.

David Stockman, The Great Deformation

David Stockman, former director of the OMB under President Reagan, former US Representative, and veteran financier is an insider's insider. Few people understand the ways in which both Washington DC and Wall Street work and intersect better than he does.

In his upcoming book, The Great Deformation: The Corruption of Capitalism in America [37], 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:

Essentially there was a cleansing run on the wholesale funding market in the canyons of Wall Street going on. It would have worked its will, just like JP Morgan allowed it to happen in 1907 when we did not have the Fed getting in the way. Because they stopped it in its tracks after the AIG bailout and then all the alphabet soup of different lines that the Fed threw out, and then the enactment of TARP, the last two investment banks standing were rescued, Goldman and Morgan [Stanley], and they should not have been. As a result of being rescued and having the cleansing liquidation of rotten balance sheets stopped, within a few weeks and certainly months they were back to the same old games, such that Goldman Sachs got $10 billion dollars for the fiscal year that started three months later after that check went out, which was October 2008. For the fiscal 2009 year, Goldman Sachs generated what I call a $29 billion surplus – $13 billion of net income after tax, and on top of that $16 billion of salaries and bonuses, 95% of it which was bonuses.

Therefore, the idea that they were on death’s door does not stack up. Even if they had been, it would not make any difference to the health of the financial system. These firms are supposed to come and go, and if people make really bad bets, if they have a trillion dollar balance sheet with six, seven, eight hundred billion dollars worth of hot-money short-term funding, then they ought to take their just reward, because it would create lessons, it would create discipline. So all the new firms that would have been formed out of the remnants of Goldman Sachs where everybody lost their stock values – which for most of these partners is tens of millions, hundreds of millions – when they formed a new firm, I doubt whether they would have gone back to the old game. What happened was the Fed stopped everything in its tracks, kept Goldman Sachs intact, the reckless Goldman Sachs and the reckless Morgan Stanley, everyone quickly recovered their stock value and the game continues. This is one of the evils that comes from this kind of deep intervention in the capital and money markets.

Stockman's anger at the unnecessary and unfair capital transfer from taxpayer to TBTF bank is matched only by his concern that, even with those bailouts, the banking system is still unacceptably vulnerable to a repeat of the same crime:

The banks quickly worked out their solvency issues because the Fed basically took it out of the hides of Main Street savers and depositors throughout America. When the Fed panicked, it basically destroyed the free-market interest rate – you cannot have capitalism, you cannot have healthy financial markets without an interest rate, which is the price of money, the price of capital that can freely measure and reflect risk and true economic prospects.

Well, once you basically unplug the pricing mechanism of a capital market and make it entirely an administered rate by the Fed, you are going to cause all kinds of deformations as I call them, or mal-investments as some of the Austrians used to call them, that basically pollutes and corrupts the system. Look at the deposit rate right now, it is 50 basis points, maybe 40, for six months. As a result of that, probably $400-500 billion a year is being transferred as a fiscal maneuver by the Fed from savers to the banks. They are collecting the spread, they've then booked the profits, they've rebuilt their book net worth, and they paid back the TARP basically out of what was thieved from the savers of America.
Now they go down and pound the table and whine and pout like JP Morgan and the rest of them, you have to let us do stock buy backs, you have to let us pay out dividends so we can ramp our stock and collect our stock option winnings. It is outrageous that the authorities, after the so-called “near death experience" of 2008 and this massive fiscal safety net and monetary safety net was put out there, is allowing them to pay dividends and to go into the market and buy back their stock. They should be under house arrest in a sense that every dime they are making from this artificial yield group being delivered by the Fed out of the hides of savers should be put on their balance sheet to build up retained earnings, to build up a cushion. I do not care whether it is fifteen or twenty or twenty-five percent common equity and retained earnings-to-assets or not, that is what we should be doing if we are going to protect the system from another raid by these people the next time we get a meltdown, which can happen at any time.

You can see why I talk about corruption, why crony capitalism is so bad. I mean, the Basel capital standards, they are a joke. We are just allowing the banks to go back into the same old game they were playing before. Everybody said the banks in late 2007 were the greatest thing since sliced bread. The market cap of the ten largest banks in America, including from Bear Stearns all the way to Citibank and JP Morgan and Goldman and so forth, was $1.25 trillion. That was up thirty times from where the predecessors of those institutions had been. Only in 1987, when Greenspan took over and began the era of bubble finance – slowly at first then rapidly, eventually, to have the market cap grow thirty times – and then on the eve of the great meltdown see the $1.25 trillion to market cap disappear, vanish, vaporize in panic in September 2008. Only a few months later, $1 trillion of that market cap disappeared in to the abyss and panic, and Bear Stearns is going down, and all the rest.

This tells you the system is dramatically unstable. In a healthy financial system and a free capital market, if I can put it that way, you are not going to have stuff going from nowhere to @1.2 trillion and then back to a trillion practically at the drop of a hat. That is instability; that is a case of a medicated market that is essentially very dangerous and is one of the many adverse consequences and deformations that result from the central-bank dominated, corrupt monetary system that has slowly built up ever since Nixon closed the gold window, but really as I say in my book, going back to 1933 in April when Roosevelt took all the private gold. So we are in a big dead-end trap, and they are digging deeper every time you get a new maneuver.