Sunday, October 20, 2013

Marshalsea Prison: Generational Theft




Geoffrey Canada ’74 and Stanley Druckenmiller ’75: Generational Theft from Bowdoin College on Vimeo.


WSJ - Stanley Druckenmiller: How Washington Really Redistributes Income


 "I did not think it would be nutty to tie entitlements to the debt ceiling because there's a massive long-term problem. And this president, despite what he says, has shown time and time again that he needs a gun at his head to negotiate in good faith. All this talk about, 'I won't negotiate with a gun at my head.' OK, you've been president for five years."

One of the great ironies of the Obama presidency is that it has been a disaster for the young people who form the core of his political coalition. High unemployment is paired with exploding debt that they will have to finance whenever they eventually find jobs.

Zero Hedge - Stanley Druckenmiller's World View: "Catastrophic" Entitlement Spending, "Bizarre" & "Illusory" Asset Markets, & Beware The Taper

Druckenmiller opines on the looming catastrophe in entitlement spending "when you hear about the National debt being $16tn; if you actually took what we promised to seniors and future taxes, present value to both of them, that number is $200tn," why the Fed exit will be a big deal for markets, "it is my belief that QE has subsidized all asset prices and when you remove that, the market will go down," and his changing views on Obama "I was drinking the hope and change Kool-aid... in hindsight, he probably needed more experience for this job." Looking back to the financial crisis, he warns, "...a necessary condition to have a financial crisis, in my opinion, is too loose monetary policy that encourages people to take undue risk and go on the risk curve and do silly things.

 “It really solidified to me during the sequester period when the whole debate was going on about cutting government spending in our fiscal issues, and that is when I first came to understand the lack of knowledge on this topic, not just from seniors, but future seniors. If you listen to the sequester debate in spending and where the debt is, I find it inconceivable they didn’t know the facts, including I would be surprised if the President knew the facts given the statements he was making.

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