Salient to Investors:

David Stockman writes:

  • Economists Piketty and Krugman are zero-sum anti-capitalists.
  • Real capitalism cannot thrive unless inventive and entrepreneurial genius is rewarded with outsized fortunes. Massive central bank  intervention is not necessary for capitalism to thrive.
  • The free market does not perennially slump toward underperformance and depressionary collapse without fiscal and monetary intervention. Heavy-handed monetary central planning destroys capitalist prosperity.
  • The panics of the pre-Fed period usually ended quickly when the overnight money rate soared by hundreds of basis points a day and often deep into double digits. Free market interest rates cured speculative excesses. The great speculators of the day like Jay Cooke ended up broke after 10 years, not worth $73 billion after three decades like Warren Buffett et al whose financial gambling fortunes are not due to genius, but to the Fed’s $50 trillion bubble..
  • The difference between fiat credit and honest savings is the fundamental dividing line between bubble finance and healthy capitalist prosperity. Free market finance is an unknown  concept today, and Wall Street and Washington both militate against it.

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