Thursday, December 9, 2010

Once again, David Stockman sounds the alarm

David Stockman, former President Ronald Regan's budget director, won't stop punching at the insanity going on in Washington DC. And his latest article on the Bush Tax cut preliminary agreement has him livid.

Key points David makes now:
  • ... it's useful to recall the classic traits of banana republic finance. These include massive and chronic government debt issuance; reckless monetary expansion to absorb it; and pervasive economic distortions that cause an uphill flow of income and wealth to the top of the economic ladder. The Obama White House’s latest act of fiscal desperation accomplishes all three.
  • ... the Fed is stimulating not loans to Main Street, but global commodity prices and the short-term trading values of equities, corporate credit, and all manner of derivative risks.
  • ... two-year extension of the 15% capital gains tax rates, for example, will shield the winnings of speculators in risk assets like copper futures and Netflix (NFLX) call options, but won’t do much to incentivize real supply-side inventors and entrepreneurs.
  • ... the artificially bloated levels of income and consumer spending that resulted from eight years of Republican deficit finance and money printing have evaporated, and can’t be recreated by more of the same.
  • ... income and wealth is being driven to the top of the economic ladder, while Main Street is being punished with soaring living costs and anemic returns on bank account savings.
Well, it appears David and me are long lost twins. His are points I've made here time and again, long ago. It's likely that we also both see the same outcome. Republicans are going to absolutely destroy our country. We're all going to eventually live in the woods and hunt our supper from the creeks and trees in our back yards. It's only a question of whether it happens within the next 5 years, or 10. And I wouldn't count on our worthless Republican Senator Richard Burr doing a damn thing to right our economic ship.

North Carolina deserves better than Republican Senator Richard Burr.

No comments:

Post a Comment