Politics, , , , , , ,

Ex-Budget Director Stockman Says Trump Tax Cuts Will Cause ‘All Hell to Break Loose’



Aug.30 — David Stockman, former budget director for President Ronald Reagan, discusses Federal Reserve monetary policy and the state of the U.S. economy with Bloomberg’s Shery Ahn and David Westin on “Bloomberg Markets: Balance of Power.”

Author Since: Sep 20, 2018

  1. Totally wrong. Current US policy is drawing money out of other countries and into the US like a magnet. Tariffs are creating incredible investment opportunities in the United States to replace imports with domestically manufactured substitutes. Low taxes are another investment incentive and created a way for US corporations to repatriate profits earned overseas back to the US with little or no penalty. Increasing interest rates is making the US dollar stronger relative to other currencies and even stronger than gold which BTW is a horrible investment. The US is creating bankruptcy, worthless foreign currencies, inability to pay off dollar denominated debt and will result in social chaos all over the world. When the rest of the world is dead the US Treasury can print money like it's going out of style. This money will devalue old debt with easy to obtain cheap new dollars. Government and private individuals will become solvent again.

    What do you mean banks weren't to blame for the 2008 catastrophe? Do you people actually think you know what you are doing? The The Gramm–Leach–Bliley Act signed into law by President Clinton in 1999, lobbied for by the banks for a long time, and endorsed by most so called experts in finance repealing the Glass Steagal act recreated the conditions of the 1920s that led to the stock market bubble, crash, and depression. In both cases easy credit was advanced to speculate in a bubble market where the only collateral for he loans was the very thing being speculated on. In the 20s it was stocks, in the 2000s it was houses. But by 2000 the finance industry had invented tricky ways to disguise and transfer risk through instruments like CMOs, CDOs, and multiply risks with CDSs believing that the creators of the CMOs and CDOs were telling the truth about the quality of these instruments when in fact they were lying through their teeth and many were engineered to fail. It was so cynical that one division of Goldman Sachs was creating these instruments engineered to fail and selling them as high quality investment grade while another division was making bets against them. They made money the old fashioned way, they stole it.

    Testifying before Congress in December 2008 Alan Greenspan said "there's something about markets I don't understand." What he didn't understand was that self regulated means unregulated and the finance industry will use every trick they can think of both legal and illegal to make as much money as they can as fast as they can without any concern for the consequences. And the government not only let them get away with it, they aided and abetted this crime against the American people. One day all those hot shot experts, Bernanke, Geitner, went to Congress and said give us 866 billion dollars now or the entire financial structure of the world will collapse in three days. But we have a plan. So Congress gave them a blank check. A week later they came back and told Congress you know that plan we talked about last week, well we realized it wouldn't work so we have another plan. Where did the ten trillion dollars of government debt come from during the Obama administration? The Fed loaned money to banks at 0 percent interest and the banks loaned it to the Federal government at a guaranteed 3 percent interest. The financial catastrophe the banks had created for themselves was transferred to the American taxpayer. YOU PEOPLE KNOW NOTHING! ALL YOU ARE INTERESTED IN IS WALL STREET. YOU DON'T GIVE A DAMN ABOUT MAIN STREET. BUT IF MAIN STREET COLLAPSES SO WILL WALL STREET AND ALREADY PEOPLE ARE BEGINNING TO TALK SERIOUSLY ABOUT SOCIALISM. IF THEY VOTE FOR IT, IT'S GAME OVER FOR EVEN THE LARGEST CORPORATIONS.

  2. Yea because taxing us will work in the longrun to???? It all comes crashing down thanks to debt far greater than anything trump can spend now. Only option is to to hell with the debt. Crash the dollar and blame the federal reserve and banks for the bailout money then bring in a new currency backed by gold. Simple. Done. Your welcome. Problems solved

  3. It's the same game played again, where the very, very rich cash in and the rest of us eat the bill. Over and over and over again and the harder we're hit, the easier it gets to sell the idea of the right wing fear based politics of less government, more tax cuts, Freedumb etc.

  4. You don't have to be very bright to realise that Trump is serving Trump and nobody else. The USA is in for some serious financial pain over the next decade or so. He has sabotaged your future and every Trump supporter must be held accountable.

  5. Stockman is a moron. First he says the tax cut is actually fake, then says it will cause all hell to break loose. So amazing watching all the low IQ trash on youtube opining, though.

  6. Wall street needs to worry about causing a collapse again.
    Because next time they won’t survive.
    And I mean literally not survive.
    There will be civil war in most countries and they will be the first to get hunted.

  7. The big problem is the Trump tax cut and massive Trump spending bills. They are giving the economy a "sugar high" that will crash in a year or so and then it's 2009 all over again. Why do these republicans keep on repeating the same mistakes?

  8. No crap tax cuts don't work, unless there for lower income households. If you give huge tax cuts, it raises inflation, therefore fractionalizeing the value of the dollar, and basically raising taxes on the average American citizen. Instead of saying tax cuts for the wealthy, just call it what it is, raising taxes for the average person.
    Look into your portfolios, how much US commercial debt(bonds) are you holding? These corporations are very grateful for your contributions, now get another job so you can eat.😔
    Thanks 🙈 🙉🙊

  9. Trump tax cuts made himself and top 10% richer. However, federal government couldn't collect enough taxes to pay for spending. Trade war also damage US economy. I believe Trump will increase taxes for middle class and cut benefit when filing 2018 tax return. At this moment, inflation is up. Middle class is the biggest loser.

  10. Old man trump would be better off today if, instead of investing the way he did, he just put the millions his daddy bequeathed him into a simple interest bearing bank account.
    The "stable genius"/draft dodging coward is the single worst investor in the history of the republic.

    Old man trump is affluenza personified.

  11. On the other hand, can someone point out which one of this group told us that we were about to enter into the 'Great Recession'?

    Careful of wonks that talk like mechanics that are fixing an automobile, because if it was that straight forward, exact and step by step we would never have recessions or downturns because they would see it coming.

  12. What the hell is he talking about? The stock market is rigged, the government is corrupt. All these talking heads are FoS. Look at the history of these types, nothing they ever predict comes true. They just want their 3 minutes in the spotlight spewing out nothing turds. It hell breaks loose, it sure isn't because of anything Trump did. Fucking losers. You are sick fucks.

  13. David always a command of the numbers and facts. I wish he would expound more on the nonbank banks and how they could possibly screw the pooch. Like subprime car loans. Everyone has a new car except me. 😎. Something is up its beginning to smell like the housing bubble in 07’08’ and then it’s over!

  14. Holy sh*t, someone actually telling the truth on corporate media…mark your calendars, folks! That said, all of this is pretty obvious anyway. Trump is a corporate vampire, sucking the (economic) lifeblood out of the country. He knows his days are numbered. Whether he's around for another 2 years or less than that, the damage is done. He and his fellow swamp creatures have already successfully raided the store.