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
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