Mark Steyn reports in the Corner at National Review Online:
I like to think I can hold my own in the apocalyptic doom-mongering department, but this guy leaves me in the dust: Reagan budget director David Stockman, writing in [Sunday's] New York Times. First, the numbers:It sort of reminds me of the classic Danny DeVito speech in "Other People's Money", which I once only half-jokingly invoked during a planning meeting with a former employer. "We're dead, all right," he said. "We're just not broke."Since the S.&P. 500 first reached its current level, in March 2000, the mad money printers at the Federal Reserve have expanded their balance sheet sixfold (to $3.2 trillion from $500 billion). Yet during that stretch, economic output has grown by an average of 1.7 percent a year (the slowest since the Civil War); real business investment has crawled forward at only 0.8 percent per year; and the payroll job count has crept up at a negligible 0.1 percent annually. Real median family income growth has dropped 8 percent, and the number of full-time middle class jobs, 6 percent. The real net worth of the “bottom” 90 percent has dropped by one-fourth. The number of food stamp and disability aid recipients has more than doubled, to 59 million, about one in five Americans.Then, what it all adds up to:These policies have brought America to an end-stage metastasis. The way out would be so radical it can’t happen. It would necessitate a sweeping divorce of the state and the market economy. It would require a renunciation of crony capitalism and its first cousin: Keynesian economics in all its forms. The state would need to get out of the business of imperial hubris, economic uplift and social insurance and shift its focus to managing and financing an effective, affordable, means-tested safety net…It’s a message for an anti-Easter: America and much of the rest of the west appear still to be living, but are already dead – walking around, shopping and spending, while underneath every vital organ has ceased to function.
The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest bubble pops, there will be nothing to stop the collapse.
Oh, but you keep reading those made-to-order front-page stories about our "recovery". Nothing to see here.