Mandeville, LA – Exclusive Transcript – The idea that the great recession has ended and we’re now in some kind of a boom just because all of the funny money that Bernyankme and company are printing is just landing in the laps of brokers on Wall Street, this is by design. Check out today’s transcript for the rest…
Begin Mike Church Show Transcript
Mike: I think I kind of covered the $642 billion budget deficit news. Were you surprised when you sent the story two days ago about surpluses being debated now in statehouses and states that have Republican governors and Republican assemblies now trying to figure out what to do with all the spoils of the Wall Street boom and the resurgent American economy?
AG: It’s a little surprising. We’ve seen here in DC, which is by no means Republican, that there’s a big budget surplus because spending never stops in this city. The idea of what they’re trying to do with cash in DC is another issue that’s coming up. We haven’t heard that the economy is doing great. Unemployment is still really high and the job numbers are always buffeted by something surprising, whether it be weather or time of the year, some kind of crazy event which causes unemployment to stay higher or creep even higher. The idea that there are surpluses does surprise me. The idea of keeping it for a rainy day fund seems to make the most sense in my mind.
Mike: What about paying the debt down? What about all those unfunded liabilities? Last time I heard, every one of the states I saw listed had billions in unfunded liabilities.
AG: Yeah, but isn’t that, as sad as it is to say, kind of fantastical numbers that don’t really exist in real time, so these governors or city councils or mayors, if we break it down into small jurisdictions, they don’t really see that as a liability because it’s not ever present in their books? It’s not something that’s tangible for them to solve.
Mike: What about the liability — first of all, I think the idea that there is a robust recovery is just preposterous. The amount of people that are working today in real numbers and as a percent of the population is less than the amount of people that were working in 1979. More and more people are dropping out of the work force either permanently and going on government subsidence, or just dropping out permanently. They’re either working multiple part-time occupations or just not working at all. I don’t know what they’re doing, but I do know that the household reporting, which is making actual phone calls, indicates that this is the case. I also know that Gallup — the Gallup organization tracks employment, too. It issues a report. Its out-of-the-workforce numbers have been steadily increasing over the course of the last decade. Certainly that has ramped up over the course of the last five years.
The idea that the great recession has ended and we’re now in some kind of a boom just because all of the funny money that Bernyankme and company are printing is just landing in the laps of brokers on Wall Street, this is by design. I can remember talking about this when Bernyankme announced about a year ago or so that he was going to pump $80 billion every month into the money supply or into the economy and told one of the FOMC meetings that he was at that the explicit and stated goal was to make the Dow Jones Industrial Average and the stock market rise. Gee, I wonder who that benefits the most. Don’t we have a large enough disparity between those that are employed and working and living month to month, check to check, and those that are in charge and are employed and not living month to month, that are not working check to check? This only exacerbates the problem. I fail to see where there is any recovery.
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This nonsense about a housing recovery is even more ridiculous. You have interest rates at zero. Hell, the interest rates are almost negative now. Would you be experiencing any kind of an increase in the amount of new homes that are being built — again, I don’t know why anyone is cheerleading this — if interest rates were at eight percent? I think everyone knows that the answer to that question is no. I don’t see where the boom is. Any governor who’s going to go out there and say [mocking] “Happy days are here again. The state needs to spend like there’s no tomorrow. Let’s get to it,” is probably not going to be a governor for very long, although the sheeple do love the spoils of their government throwing oodles and oodles of money their way, don’t they? Two very divergent takes on the same subject.
End Mike Church Show Transcript