David Stockman

David Stockman’s career in Washington began in 1970, when he served as a special assistant to U.S. Representative, John Anderson of Illinois. From 1972 to 1975, he was executive director of the U.S. House of Representatives Republican Conference. Stockman was elected as a Michigan Congressman in 1976 and held the position until his resignation in January 1981. He then became Director of the Office of Management and Budget under President Ronald Reagan, serving from 1981 until August 1985. After leaving government, Stockman joined Wall Street investment bank Salomon Bros. He later became one of the original partners at New York-based private equity firm, The Blackstone Group. Stockman left Blackstone in 1999 to start his own private equity fund based in Greenwich, Connecticut. He is the author of many books on politics, finance, and economics. He runs the subscription-based analytics site ContraCorner.

April’s CPI Codifies the New Age of Inflation

At the commodity level, the global food index is still up by 28% versus prior year—a figure which may well accelerate substantially over the balance of the year if the soaring price of fertilizers leads to the predicted cutbacks of farmer applications and therefore materially reduced yields this fall.

The Fed Is Not Fixing the Problem

There is no chance of staunching inflation if real yields remain mired deep in negative territory. Yet if the nominal yield on the UST should rise to 5-7%, and thereby marginally enter positive real yield territory, there would be carnage on Wall Street like never before.

Real Personal Income Down 20% from One Year Ago

Neither the American economy nor economists’ models are built to handle fluctuations of such gigantic magnitudes. Accordingly, the American economy is now flying blind into a direction which includes soaring inflation and an abrupt reversal of the massive monetary and fiscal stimulus that drastically distorted economic activity during the past two years.

How Virus Spending Became the New Virus

In a word, the combination of government induced “supply-side” contraction and ultra-stimulated merchandise “demand” has no parallel for folly in the annals of Washington economic policy. It was a destructive eruption in a class all by itself, and the foundation for the runaway inflation now plaguing the American public.

How the C-Suite Embraced Lockdowns and Economic War

The utter economic waste and injustice to employees, shareholders, and various other stakeholders brought on by the new corporate virtue signaling is now starkly evident in the global data that prove beyond a shadow of doubt that the whole Virus Patrol-dictated anti-Covid regime was completely wrong from the very beginning.

Patriotic Duty My Eye

As it happens, however, America has already done nearly 800 million tests, yet has some of the worst WITH-Covid mortality statistics in the western world. So we are at a complete loss to comprehend how more government-mediated “testing” will accomplish anything constructive.

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