David Stockman how to turn the US economy around
To kick off this weekend’s show David Stockman joined Cory to discuss his new book, Trunpled! A Nation on the Brink of Ruin… And How to Bring it Back”. They spent the first three segments outlining the issues the current US economy is facing and how it got to this point. They also share some ideas of how the country can get back on track.
Click here to purchase the book from Amazon.
Click download link to listen on this device: Download Show
We have two indepently problems.
A. Debt
B. Politicians.
A debt problem can never be solved by increasing debt. Increasing debt may be necessary as a short-term bandaid in going towards a long term solution, but debt has been used to bring forward future spending into the present and there is a limit. Everything is relative to GDP, of course, and the carrying cost of debt obviously gets easier as interest rates decrease. However, we have reached the limit as ZIRP approaches.
NIRP is not long term sustainable as it always ultimately will result in monetization, in order to maintain negative rates
The problem with politicians is that they want to be re-elected and thus will not or cannot inflict the level of cost-cutting necessary.
I see the only solution as a Constitutional imposition on politicians, such that they have to limit spending. Hence Convention of the States.
Term limits.
Limited spending as percentage of GDP.
Limitations on regulatory powers.
Limitations on Presidential powers.
Stricter definition of Commerce clause, to limit expansion of government powers, etc.
Returning power to the states and the people will help limit the corruption that has grown.
Although I am sure there are many thoughtful and reasonable suggestions on these issues, the one that seems to get very little attention is a need to turn back to God. There is the source of real wisdom. This is by no means a slight to CFS or others, as my comment is directed to the society at large and I am one of the least able to come up with the best solution. The scriptures demonstrate that when individuals and groups had problems they could not solve on their own or by their own abilities, there was someone they could turn to for help. When Moses got to the Red Sea, he couldn’t open it up, but he knew someone who could. If we had the faith and willingness to turn to God for help, I know we would get it. In my life I have seen this to be true. Miracles happen when we lean on God and not on our own wisdom. I am sorry if this sounds preachy, it is not my intent, only my confidence in whom I can trust.
FWIW Interesting discussion on the subject of better governemnt on limiting the cronyism which is inherent in Congress
http://www.econtalk.org/archives/2016/09/terry_moe_on_th.html
Are there many Americans today who wish the President of the United States had more power relative to the other branches of Congress? Terry Moe is one of them. In this week’s EconTalk episode, Moe–a professor of political science at Stanford University and a senior fellow at the Hoover Institution–talks with EconTalk host Russ Roberts about his new book (co-authored with William Howell), Relic. Moe wants to give the President the power to propose legislation that Congress would have to approve or reject free of amendments. Moe argues this would improve legislation and reduce the cronyism and special interest influence on Congress.
Long live the Emperor!
You’ve got to be joking.
I guess Moe never heard that power corrupts. Just look at the destruction caused by barely restricted immigration, with lower income jobs being taken by immigrants, taxation hollowing the middle class. Because taxation is excessive to support the welfare system.
The current President demanding more and more spending, with the country already bankrupt. I beg to differ. We need a balanced budget, term limits and limitation on powers of the executive. The current President is a prime example why Moe is completely wrong, but what would one expect out of Stanford, out of a bankrupt state like California.
Moe ,Larry and Curly…..moment
What about Shemp?
Great job Cory, you are a seasoned interviewer and at such a young age. I must say that David Stockman’s ideas mirror mine very closely except for one point which wasn’t mentioned in the interview but might be in his book. That point is the overproduction of goods. Industry has become more mechanized and thus more capable of producing on a huge scale than ever before by the application of artificial intelligence or A I as it is known. Technology is like rust you can’t stop it and it is destroying jobs at an alarming rate and will only speed up more as time goes by. If the word entitlements bothers people as it does me, you will have a world where much work is redundant now and will be more prevalent tomorrow and the day after. Humans are losing jobs because they can’t compete or keep up with intelligent machines. Artificial Intelligence is not only affecting low level and semi-skilled jobs, blue collar skilled jobs, white collar jobs, but also professional positions like doctors, lawyers, teachers, and professors. It is all encompassing in it’s grasp and it threatens the very basic existence of our society.
Soon we must provide a guaranteed income because jobs will be out of reach for most humans. This means that entitlements are not going away but will be increasing in the future. The new technology is a job destroyer not a job creator. DT
If you read David Stockman’s articles one year ago he was anti- Trump, it’s good that he has the ability to change his thinking, most people can’t. DT
Bob M thinks that Trump is a fool, Bob M is only fooling himself. DT
Hillary: Bernie Sanders Supporters Live In Mother’s Basements – LEAKED AUDIO
https://www.youtube.com/watch?v=a_KfsTS0WGc&list=TLTmxEkgmajXUwMTEwMjAxNg
As news of Trump’s taxes breaks, he goes off script at a rally in Pennsylvania
Christie, Giuliani: Trump’s Tax Writeoff Was ‘Genius’
Donald Trump’s decision to take a $916 million loss on his 1995 income tax return showed his business acumen and “genius” at figuring out how to minimize his tax bill, two of the Republican presidential candidate’s advisers said on Sunday.
Hilly is a joke, her 2015 Tax return show $700million tax credit,…,There should not be an income tax according to the founding fathers.
For Martin Armstrong believers:
For Tooth Fairy Believers:
One of the BEST ever interviews …Imho
Armstrong that is
Brexit.
England paid for part of the bloated bureaucracy of the EU. Now it’s leaving, so it want to leave with some of the goodies it paid for!
https://www.ft.com/content/bb899c94-8715-11e6-a75a-0c4dce033ade
October Surprise Coming-Gerald Celente
Published on Oct 2, 2016
Trends researcher Gerald Celente says, “The media is very favorable to Clinton for a very obvious reason as we see it. . . . Here’s some facts: The fact is once upon a time, there used to be a thing called communications regulation. . . . Bill Clinton deregulated the industry to allow the few to own everything. So, six companies now control over 90% of the media. Why do you think they are supporting her? Hillary and Bill Clinton get paid $250,000 to $300,000 for a half hour or hour speech when you can hear them BS for free all day long. It’s called pay-back. That’s all it is. It’s a sellout to America. Nobody is calling them out because why should “presstitutes” call them out? They are working for the whore master. They get paid to put out. That’s what they are doing. They are putting out the propaganda by the whore masters who run the media.”
Join Greg Hunter as he goes One-on-One with Gerald Celente, Publisher of The Trends Journal.
They got it slightly wrong 35 years, by blaming the Saudis. After they have bled the US of most of the wealth they can, and bought up world resources, it is going to be China that takes the US down.
https://m.youtube.com/watch?v=C9yyiD0MTvc
Trump “Deep Throat” Emerges: Someone Leaks Donald’s ’95 Tax Filing To The NYT
For months democrats had complained that it was only damaging information associated with Hillary and the Democratic party that had been leaked during the election season, a string of hacks which was promptly assigned to Russia and Putin. That changed overnight.
Comments on the New York Times Story On Trumps Tax returns
Okay – I do not know whether Donald Trump had the wherewithal in 1995 to bear $916 million of losses personally. But I doubt it. (If he did his financial career is different from what is popularly accepted.)
So the alternative is the debt was forgiven in some way. But then the story the New York Times is running is wrong – because the $916 million of losses would not have survived the debt forgiveness and hence would have wiped out his NOLs and thus he would not be allowed to shelter his income for the next 18 years.
Unless that is there is an avoidance scheme the New York Times has not worked out. Those schemes go by the name of “debt parking”.
Debt parking
Here is how debt parking works.
http://brontecapital.blogspot.com/2016/10/some-comments-on-new-york-times-story.html?spref=tw&m=1
Fukushima Radiation Has Contaminated The Entire Pacific Ocean (And It’s Going To Get Worse)
The nuclear disaster has contaminated the world’s largest ocean in only five years and it’s still leaking 300 tons of radioactive waste every day.
That wont stop people investing in uranium.
You’ve got it backwards. It won’t stop society’s demand for cheap “clean” energy. If it did, then investment in uranium WOULD stop.
I have it backwards?
Have you par chance seen whats happening to the pacific?
Might be just me but it doesnt look too “clean”.
Not that it matters, too few people will bother to care to change anything.
Celente at Usawatchdog..
Silver has some fork support around the 18.72 level today:
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=1&mn=1&dy=0&id=p13880321444&a=453701233
Arc support this week is also at the 18.72 area:
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=4&mn=7&dy=0&id=p99096419672&a=401841004
Worker Discovers Warehouse in Ohio loaded with Ballots for Hillary Already Filled Out
So here is a photo of some plastic containers. We don’t get to see what’s inside, if anything. Photo could be ten years old or a month old, who knows? It’s also not a warehouse, but a truck. I’ll move on…………
That was one of Armstrong’s behind the curtain contacts. They may pull the lids off the next batch of containers to see whats inside.
Vice president running for office from Ohio wouldn’t have anything to do with that…..joke, another Moe ,Larry & Curly moment.
Gold has gone 8 months without pulling back to test the 30 week MA. The last time it did that was in 2011 when it was on its way to $1923.
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=9&dy=22&id=p62826399746&a=451259276
Thanks, good to know that I am in agreement with Rule on his negative view of lithium and REEs.
I believe Friedland’s comment about platinum vs gold is disingenuous. He’s too smart for that.
Way off topic, but good news:
With HIV spreading at a rate of 2 million a year, UK may have a cure?
http://www.thetimes.co.uk/edition/news/british-scientists-on-brink-of-hiv-cure-w7zb86zw0
I do not have verification on this story:
If true, the unconvicted criminal would also be guilty of conspiracy to commit homicide.
Nothing would surprise me….deep state must continue ….where is the $6 trillion the Pentagon can not find….
He did decide not to release report. zero hedge
The problem with Stockman’s “solution” is that after cutting payroll taxes, politicians will not cut spending sufficiently.
People will suffer horrendously from the economic downturn caused by interest rate increases after the FOMC is abolished and the recession period will not be as short as Stockman believes. Government will still be borrowing to finance debt carrying cost. If they do this by monetization, the drop in the dollar will cause high price inflation for everyone. If they try to do it by increased consumption taxes, as Stockman suggests, price inflation reduces growth at the level needed to actually increase tax revenues.
We have an instability of positive feedback and have probably gone beyond the point of no return.