“The current ‘Money Bubble’ has been brewing for more than thirty years and is ready to pop.” So said David Stockman, today’s guest on The Two Mikes.
Mr. Stockman was President Reagan’s Budget Director and is a renowned financial and monetary expert. Since the end of Mr. Reagan’s presidency the increase in America’s total national debt — which includes public and private debt — has risen from nine trillion dollars to today’s total of 91 trillion dollars. The fault for this disaster lays squarely at the door of the Federal Reserve and its leaders, men and women who have monetized the debt since the Reagan era, thereby changing from its fairly constricted duties stated in its original charter to a “rogue government” that sees itself as a “monetary central planning authority”.
Mr. Stockman said that among politicians and the Federal Reserves’ leaders and staff there is an “enormous stupidity” that has abandoned tried-and-true free-market economics, they become raging advocates of never-has-worked Keynesianism, as shown by the FED’s recent statement that it does not know what to do about inflation save to keep raising interest rates.
Mr. Stockman also said that the federal government’s eager infusion of six trillion dollars into the economy — along with $880 billion in so-called “loans” in the PPP program, of which 750 billion was forgiven — only helped to further distort the economy, and, in reality, was really “hush money” paid because the government and the Federal Reserve quickly recognized that their ludicrous lockdown of the economy, businesses large and small, and schools was quickly creating a monetary, social, and societal collapse, one that continues expanding.
Mr. Stockman’s most recent book is The Great Money Bubble: Protect Yourself from the Coming Inflation Storm. It is published by Humanix Books and is available at Amazon and many other outlets.