The Republican Party is merely “a coalition of gangs,” David Stockman, the former congressman and Reagan-era budget director, tells Newsmax TV in an exclusive interview.
“The Republican Party is not really a party. It doesn’t stand for anything except re-electing itself,” Stockman, who directed the Office of Management and Budget under President Ronald Reagan, tells Newsmax. “The neocons are only oriented to an aggressive, imperialistic foreign policy of big defense establishment and suppression of our civil liberties. That’s bad.
“The tax cons want to just cut taxes — any time, any day — regardless of the fiscal situation,” Stockman adds. “That has gone to an absurd length. The social cons, social policy people — the right-to-life issue and gay marriage and all of that — that’s irrelevant to governing a democracy in a free society.
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“That’s basically the heart of the Republican Party,” Stockman concludes. “In that mix, how can you find anything that’s going to stand for conservative economics, fiscal rectitude, free markets, sound money? It’s not there.
“The Republican Party is basically irrelevant to the economic crisis that faces the country.”
Stockman, 66, who represented Michigan in Congress from 1977 to 1981, is the author of “The Great Deformation: The Corruption of Capitalism in America.
The New York Times best-seller details how the Federal Reserve, Congress — and the White House, in particular — have fallen prey to “crony capitalism,” leaving the nation teetering on the brink of fiscal collapse and dysfunction.
“Crony capitalism is why we bailed out Wall Street” in the financial crisis that peaked in 2008, Stockman tells Newsmax.
He notes the particular roles Treasury Secretary Henry Paulson, the former CEO of Goldman Sachs, and Fed Chairman Ben Bernanke played in the $700 billion debacle.
“George Bush had no clue. The Congress was buffaloed — [Paulson] and Bernanke went around, created panic everywhere in the Beltway and became virtual dictators,” Stockman adds. “It was a coup d’etat,” and the two investment banks remaining, Goldman and J.P. Morgan Chase, “should have gone to Chapter 11.”
Adding even more insult, “AIG didn’t need to be bailed out; the insurance companies were all protected by their regulators. It should have been liquidated,” Stockman says.
“I call that a terrible, drastic abuse of power and a permanent Rubicon, because if you can’t let Wall Street pay the price of its own gambling behavior, then why is anybody in America going to believe that free enterprise is good for you?”
More broadly, Stockman says, “crony capitalism” reflects “leaders who have adopted policies that are dangerous, reckless, and will ultimately destroy our free enterprise system and the prosperity which Main Street Americans are capable of producing.
“When you have wild men, like Bernanke and company, running the Fed and just crushing the financial system and savers in America, when you have people like the president and the Congress that’s unwilling to make any tough choices about anything, and just keep borrowing money on the grounds it’s going to get better in 2017 or something, you are in big trouble.
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“When you have Wall Street and corporate leaders who don’t care about any principle except keeping the game going and stimulating it for one more quarter so they can report better earnings and get a pop in the stock and cash in their options, the corporate leadership in America today is basically sold out. They support everything.
“The head of GE, for crying out loud, says Obama’s doing a great job,” Stockman tells Newsmax, referring to Jeffrey Immelt.
“Give me a break.”
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