The Peak Debt Twilight Zone

http://viableopposition.blogspot.ca/2013/09/the-peak-debt-twilight-zone.html

In light of the fact that we are now facing yet another debt ceiling brouhaha and with the Fed grappling with its own tapering issues at the same time, I thought that a few quotes from David Stockman's "The Great Deformation" are particularly pertinent.  Given that the mainstream media is playing up the political divisions over this issue rather than the practical problems that ever-mounting debt will place on the economy and that it is wonderful that the stock market is reacting positively to the continuation, however brief, of QE, we are being distracted from the real and very serious issues that are looming.

For those of you who aren't aware, David Stockman was the former Director of the Office of Management and Budget under the Reagan Administration from 1981 to 1985.  He was very controversial in Washington, resigning in August 1985 over his views that government should be smaller and that government spending growth should be reduced in line with decreases in taxation.

Let's open with some excerpts from an interview on Mises.  In that interview, Mr. Stockman notes that the Federal Reserve, under the guidance of both Mr. Greenspan and Mr. Bernanke have turned America's central bank into "a machine for fine-tuning every aspect of the economy" through an acceleration of the money supply as we can see here: