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-- back to Hannity as president Ronald Reagan's director of the Office of Management and Budget it's safe to say that author David Stockman knows a thing or two about the American economy.
In his new book the great.
Stockman warns that Washington needs to get its fiscal house in order or the US could be thirty trillion dollars in debt.
Within the next ten years -- I sat down earlier with the former director of OMB.
For an interview that each and every American needs to hear listen closely.
And joining us now is one and only David -- Are you sir very -- you distinction here and there often hated by the left and by the right.
Well I'm an equal opportunity critic I guess but you know we're in a big mess it's been brewing for decades and no one in particular is -- -- But we believed a lot of things that aren't true and what I do our car dealer at fault here you can't -- -- you even name names in the book I do I'm saying that there is no one who's at fault for the whole thing it's been -- if we didn't pilings and on the wagon.
Now we have made doomsday machine called the budget that can't be stopped it is heading towards you know thirty trillion in national -- I think in ten years.
The -- is really off the deep and it's becoming serial bubble machine.
That is crushing the sabres in America you know if you got a six month CD get a half a percent.
If you're on fixed income you're getting not think if someone was -- their whole life and saved a 100000 dollars to live in retirement.
400 dollars a year is what you're getting under uncle -- policies these policies.
They defy every Canon of sound money that people believed in for decades and centuries.
And that is essentially all this money has been printed this massive bond behind -- says simply putting it never gets out of the canyons of Wall Street.
The interest from zero interest rate basically -- them.
Value to speculators our economy has way too much debt and they're trying to encourage people to go back into the cool you know and do the same thing over again and it's a huge -- -- that I have a very pessimistic side of me.
That thinks that America will become Greece Spain Portugal Ireland.
Pick you -- pick your country.
Cypress I think we're headed there -- I'm wrong.
Well the title of my piece in the New York Times last Sunday which had been pounced upon four was sundown -- America not I'm not caught by Paul Krug man good me okay sir that's a blessing you know I think he definitely gets tough.
I guess so but the point is that's where we're head mean.
Because the machinery is out of control Bernanke has no clue how to get out of this.
A box -- and printing 85 billion a month that's just money made out of thin air.
It's buying all the government -- is piling up on the balance sheet of the Fed.
There is no precedent for -- -- Never don't wanna I wanna.
-- focus you on the -- for a second -- watch and the other night and move back to the book too big to fail yet.
I was -- was on HBO right hurt was in there whatever his name is.
But one of the things that struck me as the three characters that interest to me the most -- Paulson Bernanke and Geithner -- and -- I'm watching when the Fed and what they didn't go -- -- President Bush's.
This country's economy will collapse.
That's what they told him he has -- which led to TARP which led to the bailout of AIG in the banks and so on and so forth.
And I had totally disagree with that.
-- why why I wrote the book to try to demonstrated hour by hour day by day.
That this was a meltdown and the canyons of Wall Street it was one or two big highly leveraged gambling houses left Goldman Morgan Stanley we could've done without them AIG was not gonna collapse all over the world.
The holding company could have been bankrupted there was no depression 2.0 -- best Bernanke's.
You know you're -- a scholarship in the nineties there's also what is you've done by -- all this money.
He his only allowed everybody who was gambling making mistakes too leveraged you know using.
Short term funds.
Go back and do it again we're back in the same bubble you look at the junk bond market it's -- looking real estate it's beginning to bubble in the same places that.
Crashed look at the stock market it's back to where was I think that didn't listen.
I don't disagree with a word you're saying and I have as pessimistic outlook -- you do and I'm really worried about.
The people in this country that are doing the right thing.
-- are living within their means chef that put off vacations and don't buy new cars right and they have lost money in the value of their homes their biggest investment.
What do you say to people in this country how bad do you think this is gonna get I think the people of this country have to take back the central banks bank the Fed.
From that moment that the Fed -- I know but the monetary Politburo that's what I call -- what people trying to run the -- sitting there.
It's an anti democratic thing because right now tens of millions and savers are being crushed.
Because they decided.
That people ought to buy junk bonds rather than something's safe that they can -- what -- -- -- tell you what what do you see down the road America becomes what America gets you I think there and I do believe the energy sector could help him I think North Dakota can be duplicated that's my answer okay it could but if you have a monetary system has fallen apart if he had the central.
That is just massively funding speculation.
If you have a budget that is in the trillions each year in deficit.
All of these can -- -- -- something we're gonna have a battle over the budget every quarter every year for the next ten years and what we're going to end up.
We hand out in a bad place which I can't predict hasn't ever been here before -- -- had deficits this big.
No one is -- this money so fast in a short period of time homer off the charts isn't a client isn't here -- in decline but we're wandering in territory this dangerous.
-- -- had -- remain with us.
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