Ben Bernanke - The Father of Extreme US Socialism

-edited

Looking for a reason for the upsurge in radical socialism, don't blame Trump, blame the Fed.

Writer David McWilliams penned an excellent article in the Financial Times: Quantitative Easing was the Father of Millennial Socialism.

McWilliams notes that Fed chairman Ben Bernanke's "cash for trash" QE scheme drove up asset prices and bailed out the baby boomers. The cost of course, was pricing millennials out of the housing market.

Unorthodox policy penalizes the asset poor.

What assets do millennials have? Hardly any. Instead they are saddled with mountains of student debt which, thanks to president George W. Bush, could no longer be discharged in bankruptcy.

The Bankruptcy Reform Act of 2005 would have better been called the Debt Slave Act of 2005.

Then, when the Great Financial Crisis hit, the Fed came along bailed out the banks, bailed out the bondholders, bailed out Fannie Mae, and bailed out the asset holders in general, leaving millennials mired in debt unable to afford a house.

Simmering Stew of Anger

The irony in this simmering stew of anger is people blame Trump, not the Fed.

But socialism, even AOC's radical socialism is not about Trump, at least directly.

Peak Trump

I had a lengthy phone conversation with David Stockman after I finished reading his new book, "Peak Trump".

The first thing I said to him was "This really isn't about Trump, is it?"

He laughed, then responded along the lines of, "You are correct. Trump is a symptom of the problem. He wanted to drain the swamp but failed to do so. He never really had a good chance of doing that, but he failed to make the most of the chance he had. We are where we are because of decades of Congressional and monetary mismanagement."

I gave his book two thumbs up in "Peak Trump" by David Stockman: Book Review

Trump Won the Election Because

  1. Obama promised change and failed to deliver. Wars continued so did drone policy. Obamacare was a disaster. In his first term, Obama bailed out the banks.
  2. The millennials wanted Bernie Sanders and the Democrat leadership rigged the primary for Hillary. Many disillusioned millennials then sat the election out.
  3. Trump's message appealed to union workers in the rust belt states who believe China was stealing our jobs.
  4. Many believe Hillary is a bigger warmonger than Trump.
  5. People genuinely cannot stand Hillary, for many good reasons.

It took all of those things for Trump to win, and then just barely.

Rise of the Radicals

Now, instead of drifting towards the middle, the radical Left, epitomized by AOC and her Green New Deal, have an open battle to win the heart and soul of the Democratic Party.

​For example, AOC's Green New Deal Pricetag of $51 to $93 Trillion vs. Cost of Doing Nothing.

But why should she care?

Also note that the socialist don't like tax breaks for Amazon. The result was Hooray! No Jobs for New York.

But why should socialists care when the Stunningly Absurd "New Green Deal" guarantees living wages no natter what you do or what your skills are?

And let's not forget Progressive Lies Like "Free College" and "Medicare For All".

Pompous Twit

Today ZeroHedge noted Greenpeace Co-Founder Rips "Pompous Little Twit" Ocasio-Cortez As "Garden-Variety Hypocrite" On Climate.

Yes, AOC is an economically illiterate pompous twit, obvious even to a the Greenpeace co-founder.

I have a socialist friend who knows full well how nonsensical his plan is.

But he is so irritated by bailouts, Trump, tax cuts on the rich that he doesn't give a damn. He is rooting for AOC to "balance things out".

So, here we are.

Yet the irony is that independents will not vote for extreme nut cases with $80 trillion plans, nor will they vote for the likes of Elizabeth Warren or Kamala Harris with their preposterous Slave Reparation Proposals.

You don't right wrongs by being stupid, no matter how irritated you migt be at the current politics.

Mike "Mish" Shedlock

Comments
No. 1-17
Tengen
Tengen

Agreed. When your banking overlords don't care about price tags because they can print whatever they need, this ideology bleeds into politics. AOC's budget looks completely ridiculous, but does it really matter when every other candidate's budget is only a little less absurd?

If anything, someone like AOC may be the tonic we need by hastening the crash of the kleptocracy. We've feverishly applied lipstick to this pig for long enough!

lol
lol

Blame DC,blame the 2/3 of the population that gets a "check" from big gov every month,a handout from big gov,subsidy from big gov't,loan/contract from big gov't,entitlement from big gov,paycheck from big gov and on and on,the fed is the enablers...…..but the 220 million amerikans that live off big gov't is the ONLY reason for the rise of communism errrrrrr socialism!

pgp
pgp

Actually looking at the problem more deeply you have to blame 100+ years of US capitalism for the state of the world today which perhaps started with the founding of the FED but which was ultimately supported not just by banks but big companies and a fascist government policy of foisting exploitative economics (aka US democracy) on the world, often at the point of a gun.

Extreme capitalism obviously hasn't worked out, extreme socialism is just the inevitable hysteresis effect of a society crushed by elitist self-interest and unregulated greed culminating in a suffocating and dying planet.

Lets just hope history doesn't repeat with a communist revolution or it will be 100 years of government oppression with the same cretinous establishment in charge.

Greggg
Greggg

Trump will be reelected in 2020. Reason: Most people realize Jefferson's fears have come true, “I predict future happiness for Americans, if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” Occasional Cortex now represents more than half the news coming from the democrats.

wootendw
wootendw

"You don't right wrongs by being stupid, no matter how irritated you migt be at the current politics."

That is true in regards to AOC's plan but there other plans that should be equally worrisome because they sound sensible to most voters, at least in the short run. Even when bad policies do cause harm, the voters don't always know the reason - "the invisible foot of government" as Dick Armey once put it.

For example, raising taxes on the 'rich', meaning those with higher incomes. As long as they think someone else will pay, voters won't care.

Regulating businesses is another vote-catcher, particularly among those who were disgusted by the bailouts. Numerous people blame the crisis on the 'repeal' of Glass-Steagall, not realizing that Glass-Steagal included the creation of the FDIC which was not repealed (but should have been).

Raising minimum wage until it really does cause unemployment in middle-class communities is always a vote getter.

There's plenty to worry about from the left.