Comments on: The End of Sound Money and the Triumph of Crony Capitalism

By: David Calderwood

David Calderwood — Fri, 13 May 2011 16:26:12 +0000

This was a very insightful column. My question is, why does Mr. Stockman then get on MSNBC and say that the major Federal entitlement programs should by “saved” by “means testing” them?

The invasiveness of means testing would require each person to list EVERY single bit of personal property, from gun and coin collections to artwork, from financial assets around the world to every bit of real estate and royalty-producing patents, music, and books. In short, it would mean a financial strip-search and cavity probe by the IRS, far worse than the current nightmare.

Was Mr. Stockman’s comment simply him staying “between the boundaries of acceptable discourse” necessary to avoid revealing truths that get one excommunicated from polite punditry?

By: T Paine

T Paine — Tue, 15 Mar 2011 23:01:46 +0000

I won’t speak for Mr. Fox. I will say that, while I have been writing and saying the same things as Stockman for the past 2+ years on the phony financial Armageddon, I don’t think Stockman’s correct on the Reagan supply side issue. Federal receipts did double during Reagan’s tenure. http://www.whitehouse.gov/omb/budget/Historicals/
Unfortunately, he never cut the dept of ed or energy as he said he would and spending increased accordingly. Most people also forget that Reagan, Dole, Rostenkowski, and Mitchel (gang of 4) raised soc sec taxes enormously in 1983 and again raised taxes in ’86. No one can say that Reagan cut taxes overall.
This speech is an important contribution to the national discussion. I hope it’s passed around the country and world.

By: Joe

Joe — Tue, 15 Mar 2011 22:00:40 +0000

To call Jeff Immelt of GE a “crony capitalist” is giving him a compliment. He is nothing but a “green whore” and if you don’t believe me just ask Obama. It really is a sad day to see GE the company fall so far in such a short period of time.

By: The Fresh Prince of Darkness

The Fresh Prince of Darkness — Tue, 15 Mar 2011 20:39:48 +0000

Yes, I too would like to know what China is “slowly learning.”

By: Sione

Sione — Tue, 15 Mar 2011 19:52:21 +0000

Dick

You write, “In 1981 Stockman even admitted he didn’t know what he was doing or what Supply Side economics was.”

What did he say and in what context did he state it?

You state, “The biggest problem is he did not/does not understand what Robert Mundell has been teaching since the 1960s, something that China is slowly learning.”

Interesting. Please elaborate some.

You write, “Stockman’s formulation would lead to economic confusion and chaos, just as it did in the Reagan administration because he still doesn’t understand anything but seeking the lime-light.”

Provide your formulation so I can contrast it against Stockman’s. It’d be good to work out what exactly what went on, who is right or wrong and why that might be so.

Thanks for your help.

Sione

By: Dave M

Dave M — Tue, 15 Mar 2011 16:26:21 +0000

Yes…this symbiotic relationship between the legislators and the financial market could be used as a definition of fascism. It is interesting to note how the western powers avoided calling Nazi Germany a socialist power, allthough it was, and instead labeled as fascist and moved it to the extreme right of the political spectrum. In reality it was of course more closely aligned with communism. Personaly I group all political parties that either control or are controled by a segment of industry as Statist.

By: Dick Fox

Dick Fox — Tue, 15 Mar 2011 12:01:47 +0000

Stockman always starts out pretty good but then, as usual, about half way through he proves that he does not understand economics and he certainly did not/does not understand the Supply Side Revolution led by Robert Mundell, Art Laffer, Bob Bartley, and Jude Wanniski. Stockman is that kind of man who knows just enough to be dangerous and that he is. In 1981 Stockman even admitted he didn’t know what he was doing or what Supply Side economics was. The biggest problem is he did not/does not understand what Robert Mundell has been teaching since the 1960s, something that China is slowly learning.

Stockman’s formulation would lead to economic confusion and chaos, just as it did in the Reagan administration because he still doesn’t understand anything but seeking the lime-light.

By: mstob

mstob — Tue, 15 Mar 2011 11:17:11 +0000

Im with pbergn. I think crony capitalism triumphed long before this. What we are seeing now is the result of it being in place for decades.

By: Nathan

Nathan — Tue, 15 Mar 2011 03:35:54 +0000

Rather than calling this Crony Capitalism, wouldn’t it be more appropriate to call it fascism?

I just hate connecting the label “Capitalism” to this kind of treachery. So many people are so easily confused about capitalism as it is. Sometimes it seems like most think capitalism is evil.

By: Ohhh Henry

Ohhh Henry — Tue, 15 Mar 2011 02:31:27 +0000

the nation's number one crony capitalist — Jeff Immelt of GE — jumped on the phone to Secretary Paulsen and yelled "fire"! Soon the Fed and FDIC stopped the commercial-paper unwind dead in its tracks by essentially nationalizing the entire market. Even a cursory look at the data, however, shows that Immelt's SOS call was a self-serving crock.

GE? Where have I heard that name recently ... oh yes, now I remember.

By: v

Tue, 15 Mar 2011 01:52:44 +0000

Greetings David & all
US v. BVNH Case #5:09-CR-00027 Statesville NC March 7th 2011 about 5 weeks
Pray for Liberty Dollar trial victory Maccabees 2:3-20-40 God Divine Presence
Pray you have time to report this trial
Prayerfully v

By: Franklin

Franklin — Tue, 15 Mar 2011 00:32:02 +0000

Your initial sentence is profound and telling. And it is a reality I observe as well.
I’m overwhelmed by the paradox, the widespread accusations, cynic disdain of a civic refrain, culminating in, ironically, a pathetic “can’t beat ‘em, join ‘em” betrayal of individual self-reliance.
Troubling but perhaps not perplexing.

By: Franklin

Franklin — Tue, 15 Mar 2011 00:23:09 +0000

What’s the difference?

By: Chris

Chris — Mon, 14 Mar 2011 22:43:43 +0000

I commend Davis Stockman for using facts and data to dispell the myth that the whole system would have collapsed. Certainly, there are those who have argued the same thing, but very few have been willing and able to support their view with actual facts. It is true that is there does not seem to be much one can do about it, but this whole web site is about the battle of ideas. And the battle of ideas must be won first before any of this will ever change.

By: Jim

Jim — Mon, 14 Mar 2011 21:57:34 +0000

An extremely in-depth look at the current regime and crises, and I look forward to posting this link in quite a few places.

By: Ryan

Ryan — Mon, 14 Mar 2011 21:57:26 +0000

Stockman specifically addresses the fact that the Fed has the other central banks in tow. Competitive devaluation will not make people wealthier.

By: billwald

billwald — Mon, 14 Mar 2011 20:34:08 +0000

Revolt against the people we elected last year or the people we elected three years ago?

By: Dave M

Dave M — Mon, 14 Mar 2011 19:47:02 +0000

It seems that more people daily are becoming enlightened to the corrupt nature of the financial markets yet they are becoming more entrenched in the political system than ever before.

The question Evan posed as to “what next” can best be answered by what we are seeing in Egypt, Libya Bahrain ect. The end result will be a Peasant Revolt.

By: billwald

billwald — Mon, 14 Mar 2011 18:28:38 +0000

On the other hand, the US dollar has only a couple of percent against the Canadian dollar, the euro, and the British pound since the latest depression started. I can’t see the yuan replacing the US dollar in the near future.

By: pbergn

pbergn — Mon, 14 Mar 2011 17:50:21 +0000

Disagree with the main premise of the article that the “crony capitalism” has triumphed recently…

It has been around since inception – it was ALWAYS just that – a “Crony Capitalism”…
In fact, I will go even further, and tell you that the Feudalism has never even been abolished, but on the surface…

So, nothing new here… The $1bln+ question IS – “What are you going to do about it?”… It is a nature of Man to pull the blanket to his side… An there is NOTHING, NOTHING you can do about it…
Any system even if it starts in a fair, even-handed state, will eventually corrupt itself given sufficient time, since the Mother Nature is asymmetric, and not all are equally capable, gifted or willing, and most of us are not capable of contributing enough while consuming disproportionately large amount of limited natural resources…

So the system will ALWAYS be just that – RIGGED for the benefit of the conniving and more unscrupulous…