Wednesday, May 15, 2013

David Stockman: The Truth About Milton Friedman

Thomas DiLorenzo writes:
One chapter of David Stockman’s new book, "The Great Deformation: The Corruption of Capitalism in America” that will be of special interest to Austrians is chapter 13 entitled “Milton Friedman’s Folly.”  Here are a few snippets:

“Friedman’s single variable-fixed money supply growth rule was basically academic poppycock” (p. 262).

“[B]y unshackling the Fed from the constraints of fixed exchange rates and the redemption of dollar liabilities for gold, Friedman’s monetary doctrine actually handed politicians a stupendous new prize.  It rendered trivial by comparison the ills owing to garden variety insults to the free market, such as rent control or the regulation of interstate trucking” (p. 264).

“The very idea that the FOMC would function as faithful monetary eunuchs, keeping their eyes on the M1 guage and deftly adjusting the dial in either direction upon any deviation from the 3 percent target, was sheer fantasy” (p. 265).

“[T]he Greenspan and Bernanke Fed have been wholly preoccupied with manipulation of . . . interest rates, and have relegated Friedman’s entire quantity theory of money to the dustbin of history.”

“Friedman jettisoned the gold standard for a remarkable statist reason” (p. 267).

“Friedman thoroughly misunderstood the Great Depression and concluded erroneously that undue regard for the gold standard rules by the Fed during 1929-1933 had resulted in its failure to conduct aggressive open market purchases of government debt, and hence to prevent the deep slide of M1 during the forty-five months after the crash” (p. 268).

“Friedman thus sided with the central planners” (p. 269). [...]

“For all practical purposes, then, it was Friedman who shifted the foundation of the nation’s money from gold to T-bills” (p. 273).

Read the rest here. 

1 comment:

  1. The quote, "For all practical purposes, then, it was Friedman who shifted the foundation of the nation’s money from gold to T-bills", is one of the most important economic and political truths of all time.

    A New Trust is coming: the world is pivoting from trust in bankers, carry trade investing and credit, in particular Treasury debt, to trust in nannycrats, totalitarian collectivism, public private partnerships and debt servitude.

    Liberalism featured the Banker’s Regime, Milton Friedman Free To Choose, fiat money system. Now, Authoritarianism features the Beasts’ Regime, regional governance, totalitarian collectivism, debt servitude, and austerity, diktat money system.

    Diktat Money was born out of the Cyprus Bank Deposit Bailin and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability. CNBC reports Eurogroup Chief says France must speed up reforms. Jeroen Dijsselbloem, the president of the 17-nation euro bloc of nations, said France needs to accelerate its reform program after the country was given a two-year extension to meet European Union budget-deficit targets. I comment, most assuredly, God has put, and is putting Liberalism's leaders, such as Milton Friedman, Phil Gramm, and Robert Rubin, out to pasture, and bringing in Authoritarianism's new leaders. New leaders for a new age.

    The Eurozone has been and will continue to be the lynchpin in Christ’s Dispensation, Ephesians 1:10, to bring democracy and investment choice to completion, that is its fulfillment, and introduce regionalism and diktat to fruition. With three Greece Bailouts, and now the Cyprus Bank Deposit Bailin, diktat is coming to underwrite mankind’s economic and political activities, as Jesus Christ is bringing forth a New Regime, that is the Beast Regime of regional governance, totalitarian collectivism, and debt servitude, Revelation 13:1-4, which will be accompanied by the rise to power of a New Pharaoh, Revelation 13:5-10, and a New Monetary Pope, Revelation 13:11-18.

    To accomplish His aims, He is unleashing the Four Horsemen of the Apocalypse. The First Horseman of the Apocalypse is the Rider on The White Horse, who has a bow, without any arrows to effect a bloodless global and economic coup d’etat, to transfer the baton of sovereignty from nation states to regional leaders and regional sovereign bodies such as the EU Finance Ministers and the ECB, Revelation 6:1-2.

    With the failure of Credit, AGG, and Individual Currencies, such as the Australian Dollar, FXA, the Euro, FXE, and the British Pound Sterling, FXB, on the week ending May 10, 2013, the dynamos of toxic credit, JNK, Global Industrial Prouction, FXR, nation investment, EFA, Small Cap Naton Invesmtne, IFSM, and leveraged speculative financial services, IXG, will be winding down, crony capitalism, European socialism, and Greek Socialism.

    The dynamos of regional stability, regional security and regional sustainability are powering up regionalism, where the Beast regime of regional governance, totalitarian collectivism, and debt servitude is rising to rule the world in ten regions and occupy in all of mankind’s seven institutions, as foretold in bible prophecy of Revelation 13:1-4.