Tuesday, October 04, 2016

David Stockman: America Now Lives Under A "Perverted Regime"

The rise of Trump - and Bernie Sanders too - vastly transcends ordinary politics. In fact, it reaches deep into a ruined national economy that has morphed into rank casino capitalism under the misguided policies and faithless rule of the Washington and Wall Street elites.

This epic deformation has delivered historically unprecedented set-backs to the bottom 90% of American households. They have seen their real wealth and living standards steadily deteriorate for several decades now, even as vast financial windfalls have accrued to the elite few at the very top.

In fact, during the last 30 years, the real net worth of the bottom 90% has not increased at all. At the same time, the top 1% has experienced a 300% gain while the real wealth of the Forbes 400 has risen by 1,000%.

That’s not old-fashioned capitalism at work; it’s the fruit of a perverted regime of printing press money and debt-fueled faux prosperity that has been foisted on the nation by the bipartisan ruling elites.

To be sure, the proximate cause of this year’s election upheaval is similar to that in Reagan’s time. Back then, an era of drastic bipartisan mis-governance generated an electoral impulse to sweep out the Washington stables.

Now, however, it is not just the Beltway political class that is under attack. The very foundations of American economic life are imperiled. What remained of healthy market capitalism in Reagan’s time is no more.

It has been battered by 30 years of madcap money printing at the Fed. It labors under the $50 trillion of new public and private debt generated by that monetary eruption. And it staggers from the destructive blows of serial financial bubbles.

These bubbles have self-evidently resulted in a destructive boom-and-bust cycle in the financial system, but also much more. Bubble Finance has drained productivity and efficiency from the Main Street economy and has channeled vast resources to speculators and wasteful malinvestments.

~ "Trumped!" by David Stockman

1 comment:

Anonymous said...

David Stockman is a truth teller.
He is also extremely intelligent and a fantastic writer.
I have read his blog for years now and almost always agree with his point of view.

I highly recommend that the commenters read his material.