businesstrade.jpg

David A. Stockman - The Great Deformation

$
Daily Business Report
M A R K E T S
Mercantile
Article Archives
US Economic Forecast for 2012 and the Election Year Cycle
Shop the Local Merchant Economy
Right to Work vs Union State Economies
Rational Tariffs Lower Irrational Trade Deficits
International Business - Davos Style
Banking, Housing and Mortgages
David Stockman's Viewpoint on the Obama Budget Disaster
Regulations Harm Small Business and Protects Corporations
Gas Prices as an Indicator of Energy Costs
Governments Acting as Venture Capitalists
College Education Economics
Industrial Wind and the Production Tax Credit
Medicare and the Ryan Budget
U.S. Corporate Tax Rate Consequences
Corporate Spying and Intellectual Theft
The Foolish Exporting Natural Gas Policy
A Matter of Time for a VAT Tax
Big vs Small Bank Loans
Bankruptcy Trends in the Post Meltdown Era
Money Center Banks and Stricter Financial Oversight
Electric Power Generation under NYS Article X
Growth in the National Debt
Advantages of Chinese Trade Policy
Unemployment as a Lifestyle
Immigration Hurts American Employment
Bank for International Settlements on Big Banks
Small Business Assault from Obamacare
Compound Interest and the Debt Bubble
The Federal Centralization Economy
Parking Offshore Profits Hurt the Domestic Economy
The Record of Olympic Economics
Financial Algorithmic Trading
Goldman Sachs Above the Law
The MF Global Magical Mystery Tour
Destroying Internet Freedom by Taxation
The Permanent Unemployment Economy
Jackals of Jekyll Island - Federal Reserve Audit
QE3 Blowing Up the Debt Bubble
Riots Over Rotten Apple Mania
Gap Between College Costs and Inflation
Counterproductive Minimum Wage Mandates
Derivative Meltdown and Dollar Collapse
Central Banks Game Plan: One World Currency
European Commission Single Supervisory Mechanism
Lunacy of FEMA Hurricane Insurance Subsidy
Taxmageddon Holding Hands while Jumping Off the Cliff
The Direction of Equities in the Obama Economy
Is it FAIR to Tax the Rich out of Business?
California Dreaming: Bankruptcy, Pensions and Taxes
Pay Differential - Private Sector and Federal Government
Long History of HSBC Money Laundering
Swan Dive of 2013 Economy
Federal Reserve May Pause Quantitative Easing
The Economics of Sequestration
The state-owned Bank of North Dakota
Chinese Takeover with Free Trade Zones
Low Interest Rates Impoverish Savers
Bond Bubble Expectations
Currency Wars - Race to the Bottom
Government Subsidizes and Bankrupt Companies
Economics of Gun Control
Refuse to Buy or Sell with the Federal Government
The Cyprus Great Bank Robbery
Keystone Pipeline Blockage
Move Over IMF for the BRICS Development Bank
Obama Budget Proposes Cuts to Social Security and Medicare
The Risk and Reward of Bitcoins
Farm Supports and Social Welfare
Internet and Sale Taxes Dialectic
The Warren Buffett House of Cards
IRS as a Political Hit Squad
Revenue Budget Projections
Google and the NSA Connection
The Roubini - Faber Debate
Hydrofracking Boom or Bust
Goldman Sachs - first learn, then earn and serve
The Federal Reserve after Ben Bernanke
Implications of a Pyrrhic Real Estate Rebound
The New Normal: Part-Time Employmentyment
U.S. & Europe Trade Deal Honeymoon
Detroit City Bankruptcy Blues
J P Morgan and Commodity Manipulation
Strange Business Success Ventures
Business of Evangelism Religion
NFL Marketing Machine
Privacy Gone on Offshore Assets
Chinese Banks Quasi Government Institutions
Forecasts of a Doomed Economy
Financial Meltdown Five Years After
Corporate Profits and Worker Unemployment
Renminbi Soon to Be a Reserve Currency
Rehypothecation of Collateral
IMF Proposal to Tax Bank Deposits
Transfers excluded, JP Morgan Chase is Wired
Insurance Companies Profit from Obamacare
Climate Change by Executive Order
Economics of Non-governmental Organizations
Why Business Franchising is a Bad Deal
The Business of the Christmas Season
China Becomes Largest Trading Nation
Obamacare as a Jobs Killer
Does a 100 Trillion Debt Total Matter?
Underground Commerce is the Real Economy
Technology and the Future of Jobs
The Japanese Debt Economy
Individual Wealth in Perspective
Inevitability of Financial Bubbles
Russian Sanctions Backfire
Is the Dollar and Equities Ready to Crash?
Economic Reality of a Wealth Tax
How stable is the Bond Market?
Are International Stocks Safer than U.S. Equities?
David A. Stockman - The Great Deformation
Chinese and Japanese Deflationary Economies
Euro Crisis Deepens
Russia's SWIFT Settlement Alternative
The Swiss will not have more EU QE
Business of Global Warming Fraud
Economics of NYS Southern Tier Secession
Fear of IRS Tax Audits Diminish
Where is Global Economic Growth?
Government's share of minimum wage increase
Economic Growth Is Impossible
Replace the Business Cycle with Permanent Poverty
Who benefits from the lifting of Iranian sanctions?
Who Wins in a Currency Devaluation War?
Labor Day when there is no work
Municipal Bankruptcies and more on the way
Undeniable Social Security Demographics
Grinch that stole Christmass
Business Mergers Soar in 2015
The Chinese Market Crash
Driverless Vehicles Powered by Artificial Intelligence
U.S. Banks Ready for Negative Interest Rates?
International Trade Sinks with the Baltic Dry Index
SunEdison Green Power Bankruptcy Inevitability
Another Record Collection from Federal Taxes
BREAKING ALL THE RULES
BREAKING ALL THE RULES Forum
BATR Index
hub
Corporatocracy
Forbidden History
Reign of Terror
Stuck on Stupid
Totalitarian Collectivism
Global Gulag
Inherent Autonomy
Radical Reactionary
Strappado Wrack
View from the Mount
Solitary Purdah
Dueling Twins
Varying Verity
911 War of Terror
HOPE

davidstockmanbook.jpg

David A. Stockman - The Great Deformation

One sage of economics is mostly ignored because he dares to reject the Keynesian economics doctrine that is so essential to maintain the debt slavery milieu. The last hundred years fostered the dominion of the banksters. The economic future is bleak for humanity as long as the fraudulent monetary system of fiat money is allowed to continue. But before this conclusion can become a commonly accepted cultural axiom, the historic context needs to be understood by present generations.

Detlev Schlichter’s review of “The Great Deformation – The Corruption of Capitalism in America” by David A. Stockman, makes a strong case why his economic acumen is sorely under appreciated.

“Stockman puts his unsentimental assessment of America’s present reality into a broader historical context. Stockman identifies correctly the act of original sin that led America astray from the path of broadly free market economics and limited and fiscally responsible government, namely the abandonment of sound money. As America moved away from hard money, epitomized originally by the gold standard and a Federal Reserve with a strictly limited role as a bankers’ bank, and later, in already watered-down form, by the Bretton Woods gold-exchange-standard, and embraced an unconstrained fiat money system and ‘free-floating’ global paper monies it robbed the free market of its essential inner compass and ‘true north’ of market-based interest rates and market-enforced financial prudence.”

Myth one: The 2008 financial crisis was the result of unregulated markets. TARP and the Fed saved the country from Great Depression 2.0

Myth two: There was such a thing as the ‘Reagan Revolution’ and it revitalized American capitalism.

Myth three: The Great Depression was caused by the gold standard and was ended by Roosevelt’s Keynesian policies.

Myth four: Free floating paper monies are a sign of free market capitalism.

Myth five: Modern financial markets represent free market capitalism.

In order to appreciate the esteem background of Mr. Stockman, King World News provides a MP3 audio interview for individual use. They go on to state that ‘David Stockman is the ultimate Washington insider turned iconoclast. He began his career in Washington as a young man and quickly rose through the ranks of the Republican Party to become the Director of the Office of Management and Budget under President Ronald Reagan. After leaving the White House, Stockman had a 20-year career on Wall Street.”

For those intrigued about the man, a lengthy 1981 interview essay, The Education of David Stockman by William Greider appeared in The Atlantic. Bringing observations more current, Robert Garmong’s review of The Great Deformation, describes the thesis in the book.

“The Great Deformation is Stockman’s attempt to explain and diagnose the economic crash, connect it to historical trends, and warn against policies that will bring worse economic disasters in the future. Stockman presents a compelling case, based on economic theory and exhaustive research. His warnings for the economic future are chilling but powerfully argued.

The “Great Deformation” named in Stockman’s title is the distortion of the economy brought about by the Federal Reserve’s credit expansion since 1971, when Richard Nixon ended the last vestiges of the gold standard.”

Since the “Great Deformation” was first published in 2013, the serious business press has devoted intense reaction to a topic where disagreement is the norm. Now in paperback, on Kindle and in audio format, the opportunity for a much broader readership will develop.

The latest reflection on Stockman’s web site, the Contra Corner, the author Jerzy Strzelecki writes the article, On The Impossibility Of Rational Calculation Under A Keynesian/Friedmanite Central Banking Regime.

 “David Stockman’s book is the first one in the history of economic thought which describes in detail, mostly based on economic history of the United States from the World War I to the present, and in particular on the basis of a detailed analysis of the period from 1985 to 2012, what happens in the economy when a Central Bank, liberated from the anchor of the “barbaric relic” consisting in a linkage between money and gold, becomes a completely discretionary master of the interest rate, replacing in the process of its determination “the invisible hand” with a “visible hand” of the Monetary  Political Bureau of the Open Market Committee of the Federal Reserve System.”

Here lies the significance of the book and the titanic struggle that still needs to be waged over the unavoidability of monetary destruction when all empirical ties of restraint are severed from money creation. Add the destructive foundation of debt generated obligations on the origination of fiat specie, and you have the economic inevitability of tyrannical enslavement. 

In a world where a Noble Prize for Economics is bestowed on a Federal Reserve apologist like Paul Krugman, the expected media convergence opposing David Stockman is laughable. An illustration of this attitude, registered in the Huffington Press cites a Stockman published op-ed in The NYT highlighting the themes of his new book “The Great Deformation: The Corruption Of Capitalism In America”, as “Krugman criticized the op-ed, calling Stockman a “cranky old man,” and referring to the piece as “just a series of gee-whiz, context-and model-free numbers embedded in a rant -- and not even an interesting rant.”

Understand that the banking establishment is committed to the Federal Reserve monocracy. The essential economic power resides in the money creation process. Debating such a fundamental reality is sheer heresy to the ruling powers. Surely, the controlled media censors such discussions, and it is clear that the financial plutocrats own and set the agenda for their media presstitutes.

For those who remember the brilliance and courage of Stockman during the Reagan administration, the burden to widely distribute his arguments to a severely misinformed society is crucial. The topic of the nature of money is so critical and so profoundly misunderstood, that any hope for a public awakening, both economic and political, is at stake. Stockman is no crank, he is a prophet. Unless there is a monetary revolt, doom is preordained, so spread the word. Sign-up for the Contra Corner Daily Digest.      

James Hall – October 29, 2014

Subscribe to the BATR Realpolitik Newsletter

Discuss or comment about this essay on the BATR Forum

a free speech forum open to the public
BATRforum.gif

This site  The Web 

marketslogo.gif

tumblr page counter