New Currency War starting?

Stockman is a partian idiot. He has no training or education in finance or economics. He makes his money being a partisan idiot -- he always has, always will. He recently wrote a book and now he is trying to sell it. Stockman knows virtually nothing about economics or finance.

 

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His NYT Op Ed piece was called: "Don´t shoot the messenger." That is what you are doing - attacking the messenger - not one word critical of the message.

Let me compactly summarize stockman´s message, first by quoting from post 28 in bold text:

"{US} has been printing more than a trillion thin-air dollars every year for last 4 or 5 years {and has at best} has made economy grow slightly, but at great price for next generation to pay."

Stockman, and I think the Fed and Treasury´s thin-air money presses can not forever hold up an economy that has already gone bust and will when they turn the presses off, interest rates soar, confidence in the dollar collapses, its reserves status and the PetroDollar are in history´s scrap bin etc.

Paulson´s plan was done mainly to make Big Bank CEO very rich instead of let big banks / the derivative factories / fail. Note all their derivatives piled on top of each other reached 30 to 1 leverage and would have only hurt the likes of Goldman Sucks if they failed. - Not the local banks, which held no bubble of derivatives but soild banking´s traditional activity, mainly take in deposits and lend the funds out on mortgages etc. as security.

Paulson, ex-CEO of Goldman Sucks had a vested interest in seeing his retirement paid when he left office and it would not have been if Goldman had failed. So he was distoring reality, telling Congress late into the week-end night: there would be no economy on Monday, etc. if Congress did not approve TARP etc.

I made a post, even before Congress voting explaining in detail why Paulson´s plan would fail (Treated only the sysmptons, not the fundamentals, etc.) and it did fail, leading to even greater QEs, etc. being "needed" and now 85Billion per month, with no end in sight - "QE-infinity." See that thread here:
http://www.sciforums.com/showthread...-or-not-quot&p=2025940&viewfull=1#post2025940

Here is the start of that thread:

After discussion of goals 4 & 5, here are the main footnote comments:
--------------------
*The "feet dragging" Republicans refusing to accept Paulson's plan, even with the CEO bonus caps etc., have a good point (as do I). We only need to insure that ALL mortgages will be paid in full, not buy them all. These Republicans no doubt want to give this job to private insurance compainies, but as the biggest (AIG) has already failed, that will not work.

**If Uncle Sam receives a fraction of the title of house sold at auction, and it is rented by buyer, Uncle Sam receives that fraction of the rent and pays none of the maintenance expenses.

*** Joe American remaining in “his house” after US (FHA?) holds the entire title via "rent to buy" instead of sale is best option, if Joe can afford it. Many who cannot pay their old mortgage will be able to, especially if they still have any equity in the house. Effectively, the US (FHA?) grants Joe a new mortgage with principle equal only to the old unpaid balance.

“Better” socially and economically because Joe as renter will not damage “his house.” - That is hard to control. - It is very tempting (to a transitory renter) to sell the dishwasher etc. during the last month of the rental contract, if he is planning to move to another house. That renter can always claim it was broken and did not bother to tell Uncle Sam. - "I just discarded it as the repair man said it was not worth fixing." etc.

Second reason "rent-to-buy" is better is it eliminates the sales commission the real estate agents would take and other title transfer expenses. (US got title cheaply directly from Joe without auction expenses. - No one can claim US does not own the house, even if not recorded at the local court house etc. but it should be. The county can contribute by making no charge to US for recording in land records as this plan helps hold up their assessment based taxes on the house.)

 

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Would a 'partisan idiot' write a book called....?

http://www.amazon.com/The-Triumph-Politics-Reagan-Revolution/dp/0060155604

 

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Yes he would, he did. He is a partisan idiot. He makes his money playing the right wing nut case circuit like so many others.

After serving as director of Management and Budget in Reagan's first term, he went to work in private equity where he was a failure. And as I previously mentioned he lacks an education in business and economics. He is a dedicated partisan. And a few years ago he was indicted for fraud related to the company he put into bankruptcy...yeah a real economic authority!

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This guy really knows what he is talking about - NOT!

http://en.wikipedia.org/wiki/David_Stockman