Heard heard David Stockman about the Fed keeping the rates low on Bloomberg following the close of the market on Monday. He explained why it had started with the high 16%+ interest rates with Carter but it should have gone away a long time ago and rates been allowed to fluctuate.
Looks to this non-economist that the Fed policy on interest rates and the debt ceiling may have caused a slow-down to this economy to get much worse with the Bernanke Fed policy. Add to that the fact that Obama and liberal Democrats have gone on a spending spree with the new laws they have passed like Obamacare. The first mistake was bailing out the banks at the end of the Bush term -- they should have been allowed to fail and the strong ones would have gotten stronger if the Feds would have stayed out of the bank bailout. Too many Goldman Sachs people have been in the Administrations for years who have led us down this path while they give out big bonus and makes tons of money on the backs of the taxpayers. Goldman Sachs and other large financial institutions have their people going in and out of Administrations at will -- one leaves and is replaced with someone else from Wall Street.
Is that why the attacks on Rick Perry are so nasty filled with lies and half truths -- the folks at Goldman Sachs and other financial institutions don't want someone new in the White House that is not about to have those types in his Administration? They prefer their puppet Obama to keep the money rolling into their coffers so they can get their large bonus' and make millions on the backs of taxpayers.
More and more people who are not afraid to take on the big guys are speaking out that Perry is right about Fed policy hurting the dollar and the economy. David Stockman from the Reagan Administration is one of them. You can also view exactly what Rick Perry said on the video below:
David Stockman: Rick Perry Is Right, the Fed Is “Totally Wrong”
By Peter Gorenstein | Daily Ticker – 6 hours ago
Texas Governor Rick Perry made headlines in only his second day on the presidential campaign trail when he said the Federal Reserve's money printing policies are almost "treasonous." President Obama reacted Tuesday saying the GOP hopeful should be "a little more careful" with his words.
The Daily Ticker's guest David Stockman agrees with Obama about Perry's poor choice of words but also wholeheartedly agrees with Perry's sentiment. " I think he was dead on in his thought," the former director of the Office of Management and Budget in the Reagan administration tells Aaron Task in the accompanying clip. "I think it's time Republicans woke up to the fact that is the fundamental problem in our economy today."
Stockman, who has long been a critic of the Fed's low interest rate policy, says it is "totally wrong." Stockman says "exceptionally low" interest rates have resulted in excessive speculation on Wall Street "that is utterly destroying our capital markets" and adding to the already unsustainable debt crisis. He goes on to say, "The fact is the Fed is the number one problem holding back this economy, punishing savers, savaging low income people trying to buy food, energy or fuel."
Stockman fears the worst is yet to come when current tax breaks and stimulus come to an end in 2013. "The mother of all Keynesian contractions is coming in 2013 -- when all these tax cuts expire, when all this stimulus is gone."
What results will be another recession caused by a necessary but painful period of austerity that will crimp growth and job creation. Therefore, current deficit projections will have to be revised downward as tax revenues fall behind and the millions of new jobs Congress anticipates never materialize.
Source: Yahoo Finance