of level. the experiences from someone where you are setting is in the target in the crowd that is extreme violence. and i felt there were a lot of people down and i want to lead a life that i lead. i want to show them where it goes and to really know what they're stepping into and make them think. so that's why it was important to me. ..

and it was important to me because it's important to show where the dark side goes, what happens, the other side and not glamorizing. i told you the story in 23 years trying to get it published as a message there, never give up. you can't change any of this for

nothing. present to the place either accept the love with my foster parents. i was worried nothing and i thought one book to be off the press with my name on it. that was what turned it around to be a bestseller, letters of the website in different places has been spies from all walks of life. one and 20 books to sign up for a film will make it. i was fortunate enough to have a red carpet film premiere and i said to my wife, she came to me,

and then she told her parents have been taught three times. she then tells her parents -- [inaudible] and so she's been through a lot with me. the next time was at 8:00 in the morning, so just made the headlines with the older press. showing here today the red carpet that is worth that and you when all that was gone, is that an all-night party?

now, are foster parents both passed away sick of never see you turn my life around. i've got to do something at issue with me. iraq across the store. the red carpet at com and the site is still there. would you like to take a picture? my foster parents who want to go with me. this is the moment of churning around. >> host: cass pennant is an author and as he says they wholemeal edges. his website is cass pennant.com. he's the author of eight books. anyone coming out this year. >> guest: a new one coming out this month. the foot of look at a bouncer

security guy. this one night days with one eye blind and no window at. >> host: we are out of time. you are watching booktv in london on c-span 2.

>> booktv attended a publication party for david stockman held at the offices of qorvis communications in washington d.c. mr. stockman mingled with invited guests amid infernal remarks about his book. it is about 40 minutes.

>> they kind of wonder. >> how often do you do things like this? >> we do other things here. when they told me her book was coming out several months ago -- [inaudible] >> imposed a new wicked have a lot of people. there's no memory of pre-1990.

i was doing the c-span thing with brian lamb. he's got this footage from 1981 and 1982. as i say, i actually was on c-span sunday morning talking about the book a little bit. >> you do bloomberg. >> they just let me come in and they had that walking thing reset down an airplane that theme song from what was the apocalypse now? >> yeah, please.

[inaudible] >> shoot a bear isn't she -- [inaudible] she's one of the 20 euros in the book. >> i was much younger. [inaudible] i was at clinton's cea. >> what good career. >> well, i'll look for it and get it up on my list. >> is that rate?

you're not in the budget business? >> what is your field? >> this is a family affair. [inaudible] i am on the warpath in the current budget productions because i didn't see as a model of the economy, which is obsolete. it's kind of potential gdp, springs back in four years. we stay on the path of potential gdp forever. why are we using models that way over project to the economy and

result in a projection far lower than it is. i took the last 10 years and said cut-and-paste. we had the same economics as the last 10 years because i don't see any reason why it couldn't get any better. when you do that is 15, 20 charland. not trying to make it worse, just true. overcurrent have another recession. these projections are 14 year. >> we kind of have this rule that if we can get the deficits down below 3% of gdp at all be okay. it may not. >> its current 1.7% since the first quarter of 2000.

that's not a cycle. that is a trend peered if you project the gdp at 1.7 rail 3.9 nominal, pretty ugly. so go redo. good to see you. >> i saw you yesterday. i miss you a zillion years ago, but i just wanted to say i read the op-ed and said he thought the deep end. and then i heard the rest. as you can tell i disagree. [inaudible] >> at the retake. debunks a lot of mythology in the public dialogue, things about the republican area and the new deal, including the fact

in 1937 they try to balance the budget. that's not true. i don't know if we got into this yesterday, but with an accident all stimulus, when the bonus scheme that was made in the summer of night 1036 with world war i and they didn't realize that 3 million who receive them with cash in their bonds immediately. there is the equivalent of a $1 trillion stimulus in today's dollars. at the shelves are empty, reordered, and storage, industrial projections took off in the veteran spent their last dollar. it ended and i had nothing to do with the roosevelt secretary

treasury. >> when i asked you yesterday about okay fine, you're supposed to let them go down. is that it will be constrained to wall street. my sense was there is enough mortgage-backed comment that her in the equities of community banks. >> no, there weren't. you've got to read my book because of the entire mainstream banking commercials to them, at the balance street had 100 billion, which is nothing. it would have been written -- they wouldn't have those securities. >> in that case, maybe with the benefit of information, i am

more sympathetic even though i'm not -- [inaudible] >> they walk home. they were panicked. they could have looked into it. they could have realized all the rest of it was the iranians in tory shelves -- >> you don't think after leaving they just freaked out? >> a freak out because the institutions they knew and loved were going down by arguing that made any difference. >> if they had known not, they probably still would've done the same thing. >> i think it is well-meaning.

>> he was in the wrong job. [inaudible] he got himself all hot and other and all of a sudden he basically thought he was threatening the world. bush had no clue in the treasury took over. [inaudible] for nike runs around telling about the great depression. >> chapter 31. chapter 31 called naki laid out

or do all the difference 30s, which is night and day from today. our industrial economy came. this time as china. the rebels here are basically like a huge importer, debtor, consumer economy. millions of jobs, which wasn't good with this stimulus in june june 2009 before any of this stimulus took over. [inaudible]

[inaudible] >> how long were you dare? [inaudible] >> i had to be an active first-term, better than transportation. >> when i first started as on the commerce committee. all these battles over jimmy carter's energy program. >> i not had the graduate endured in washington. by the economic in minnesota, so you're going around the country looking for places to speak. >> you know former senator david invited me to speak to some

organization around minneapolis somewhere, i think in late april. i think it's like april 25th or 26. >> great, we'll talk to dave. >> that would be great if you could do that. >> thank you, everybody. before introduced david, need to brag for a second. a couple weeks ago, someone got the work we did for & co. he ran to the one commercial with the cars, dallas says. two people did it appear cassie, where you? we just wanted to brag for a

second. [applause] a couple of other quick things. we set up a special wireless network for everybody today. if you'd like to live to eat while this is going on, hashed out to party and it's up to have you follow us. they will be in the conference room there where they will be signing books. let me introduce david. just two quick very true stories. 27 years ago i was coming back from a trip to hawaii. as glamorous as that sounds, as they are doing gramm-rudman boat. i was coming back day this book was published. it wasn't available in the bookstore in honolulu, someone like i'm in l.a., i ran to the

bookstore. got a copy of it, read it. today, 27 years later, david corrected a huge miscarriage of justice. he signed it. the other quick story i mentioned before he began testifying on capitol hill about military pensions. he said something to the effect of how he was outraged is just a terrible thing to generals who were interested in their pension. i say this today because yesterday almost three decades later, the current secretary said almost exactly the same thing, talking about pensions, military benefits come at those things and everything had to be on the table. this clearly a man ahead of his

time. when you think about the fact chuck hagel said that yesterday you think we arranged almost. i'm not going to utah. secretary haeckel as much my letter language. that's not surprising if you've read the book or anything, you know he says and thinks directly and unambiguously, which brings us to david slater spoke, "the great deformation." not a book and tape and then afterward i missing very intentionally. in no particular order, wall street, corporate america, republicans, democrats and the federal reserve. i'm not going to repeat what you said about william miller, but anybody else who might have passed by at any one time. what david said 27 years ago in this book.

those of you to read about it or google that, you know what he said they are created all kinds of ways given the people he hasn't dated in this book have no doubt the ways of the cross and in every single direction. rather than me telling you any more, please welcome david stockman. [applause] >> well, thank you for coming. the debate shouldn't have a closer, but i warn you i am wired. washington to get there someone wearing a wire and it's having a healthy thing to do. i want to say a few things and hopefully take a bunch of questions and i'm happy to send the book and so forth. i have to start by confessing i'm really gratified all of you came to a book party when i'm not even a real author. according to some, i am a cranky

old man who got lost somewhere in 700 pages to air at least according to professor krugman. so i am politically incorrect, but i have to say when i did the times piece on sunday and the reaction came immediately not only from an, but many of his fellow travelers, all of a sudden the book took off. i was amazed. a 700 page book has a lot of great history and so forth in may. normally you would think that would go right up to number five on the amazon list in one day, the first day. this is not to brag because i want to point out what is ahead of me. there were two diet cokes in front of me and one called the walking dead, which is a novel of horror stories.

what i think is this really is a diet book about the national diet they were going to have to have over the next decade or longer if there's any hope whatsoever and i don't get that much chance of a moscow fiscal imbalance under control and reeling in what i call the rogue central bank that is sending in their mismanaged image in continues to do so. what i thought it would do here because you possibly can into the details pathologies standing and waiting as i would give four or five provocative soundbite, and be happy answer any questions that may result from anyone who's not quite convinced because i'm not going to provide any evidence. i'm just going to say it. and if you're still not convinced come on by cheap to buy the book because that's all they are and you hopefully be convinced that the yen. here they are, i think we have

underway a massive failure of the machinery of government. i think it's a little ironic as the public dialogue of decades in america has been the failure of the private economy about the imperfections of capitalism and the need to pile on government one responsibility after another through the arm of the federal reserve, central bank for fiscal authorities or tax codes or entitlements that fits so many problems i don't want to listen today, that you're familiar with them. take care on this location between regions. have a socialist safety net for 50, 60, 70 million people in poverty. the massively subsidizes and so forth. all of these things have come

crashing down. it's got too many responsibilities. the costs are too great. the inability of our democratic system to do with it is nontransparent because what are the proponents of big government , both republicans and democrats. anytime anywhere for any purpose essentially turns the irs and the revenue code into another room of big government to make this happen in the energy area in housing for the financial industry and on and on i could go. so we ended up with a massive government, which is a jobs machine in the eyes of anybody on the spending program, republicans on the tax side. we end up spending beanpole and

upo 24% in both parties paralyzed on either side of this enormous gap in between. in a democracy, if you don't have a conservative party willing to defend the treasury to pay the government's bill if you can't cut spending, not that eisenhower did and what he's one of great heroes come you end up with two free lunch parties competing for the affections not only the elect area, but the whole money raising political action committee special interest group process that now totally dominates the system. the first thing is the budget has become a doomsday machine. the farmer structural, much bigger than anybody imagined, far bigger than the seven land. it's not a glide path down.

it's going to go up if you use honest economics. honest economics, a simple way to explain it, do a cut-and-paste job on the last 10 years in terms of the unemployment rate, gdp growth rate pier project forward and you'll get 15 to 20 trillion deficits and that gap is so huge that there's no way the politicians will ever be able to deal with it because any pain they talk about today, which is minor is closing the gap. one example, the idea that we should change the cost of living adjustment is a good idea, but only takes 200 billion over 10 years come 1% or 2% out there. the price is going to occur is

going to happen month after month, year after year. but going to spill over in the economy. that's going to fundamentally undermine confidence and i'm not trying to paint a story at doom or gloom, which it is. i'm trying to get the honest truth of about the budget doomsday machine. second is the fed is a maker. they do untested. but what is considered to be wacky as recent as 1990 that she might've taken the pole upon. they are expanding the balance sheets the balance sheet simplified so fast. they are so deeply involved in all the financial markets that interest rates have been destroyed. wall street today is nothing but a casino that is frontrunning entreating what the feds may do in there for the fun or good is the greatest bubble ever created

and when it explodes come a huge problem on a pin. the political parties have failed. i say may book basically they become glorified whose job is to introduce politicians to money and the political action committee and the other mechanisms of getting reelected. the party stand for nothing or if they do have worth in the platform they betray it the first time they get a chance. look at what the republicans did. rampant crony capitalism is now the machinery of government. high battle section on what i called the black panic to demonstrate there is not a great depression to point out coming down the pipe. if the debian gave economics which means it was that bill, with the possible, wasn't going to happen, but a cover story for

bailing out goldman sachs, bailing out morgan stanley. aig was not a contagious disease. there never was going to be payrolls that couldn't be paid. all of this is urban legends created in a few days to allow all the basic goldman sachs occupation of the treasury bill qaeda and to wall street with t.a.r.p. with massive liquidity injections in order to bail out the last few investment tanks standing, which are really big gambling casinos in glorified hedge funds that could have gone down that wouldn't have done great harm in the long run to our economy. as many other propositions in the book. that's mild compared to other propositions in the book. we cover are pretty extensive

terrain. there's a lot of analysis, but i hope that gives you some flavor for it and there's one or two people not convinced. we can take questions. thank you. [applause] >> we are going to take three quick questions. anybody have a question for david? >> looking forward, not back, do you have ideas about restructuring the side? do you think it's the fault of the fed members who are too tied to wall street? if you have a correction for the fed going forward, what do radio? >> yeah, i do. go back to the original design in 1914 when it opened. design was created by the chairman of the house banking committee that created it.

a lot of you are familiar with classical classical, one of the greatest monetary and financial thinkers to be elect to office. not appointed, elected. he basically said the job of the site is to run for banks can come, get cash to the penalty rate and some of you may be familiar with. it would not own any government debt. it would not intervene intentionally or perlite within the financial markets. it would never be in wall street and therefore wouldn't become a national monetary planning agency and end up with 12 people trying to run the world. the other conception was built in friedman. the great debate of the 20th century was not hayek versus canes. it was really friedman versus

class. friedman was supposedly a great free-market guy who created this monster of the federal reserve intervening in the debt market. he was a conservative, so we set only put those who read book reviews, not doing anything in the money supply grows at 3%. he never explained how the process is going to deliver in munich that would have the discipline. what we have instead is people interested in power, people interested in running the economy and the world in finding excuses to do it for maternity three-masted beaches the a substantial economic

>> in 2008, most of us remember there is a real sense of panic for potential panic. how would you have carried forward or not bomb that? >> great question. during the panic of 1907, which is every bit as dire as does any one a couple commercial commercial banks for failing to teddy roosevelt was president. he was in louisiana bear hunting. he got a message there is a crisis on wall street. he set out kerry will continue bare and sit in the swamps of louisiana the next 10 days. by the time he back on wall street is taking care of his own problem. not the fed, not printing

presses, not the taxpayers money. the next thing when you open in a carried a lot on the -- when you open with our money to try for banks in the group, he screwed up. you put the bank and the situation. you are gone. you're out the door. a new team is coming in tomorrow morning. he then settled the board of directors supervising have failed. that's how a real financial crisis is solved if we let the market system work. during the four or five days at the panic of 1907 of bernanke impulse and running around injury not panic, there was no central federal reserve.

nevertheless, they got it under control in the economy suffered for a couple years, but it worked its way out. it's an indication to me that the mechanism missing today's interest rates. bernanke couldn't even imagine. on sundays the interest rate when a tiny%. peaked at 50% or 80% of the speculators to bribe money on margin device stocks for by stimulus they were wiped out for the next generation nobody did it again until 1929 and then make a wiped out over 40 years it didn't happen again. i think we are really off the deep end. it is basically coddling wall street, not helping the ministry of economy. how can anybody save money if

you're getting half a percent. that's where machinery of government has come off the deep end in his doing things that are harmful to any kind of orderly and healthy recovery. not only of our economy, the political system as well. >> i remember 19% mortgage. my question is, when will we see the turn? in other words, $4 billion for security every day to keep it going. what are the first symptoms will see when they start to pull back? >> the problem is they've taken themselves hostage as i said in a "new york times" piece sunday, they are in a monetary prison their own making because now there are literally hundreds of billions a treasury bonds owned by speculators and fast money traders who buy the bond under

98 cents on the dollar in the repo market. they pay 10 cents -- 10 basis points to borrow their earnings 180-point. the cab docketing the spread, laughing all the way to the bank to be like a baby because uncle ben is going to keep the overnight rate at 10 basis points and be massively intervening in the market. what he hasn't out through if there's ever a hint, a slightly detectable smoke signal the fed will stop, all of these smart guys will unwind, payback the repo, saw the bond yields go up, prices go down. then the slower bond traders figure out something that is sweeping his weaker wall street.

and then they really slow footed traders who were out in kansas city and other places will suddenly find their end of the week mark is down and a reduction in costs are in, so they panic and start selling. my point is there is no big. this market is so propped up, so medicated, hot tub, artificial and unsustainable that if the fed ever stops, of course it can print a billion dollars a day for eternity. if you think you can, why is anybody working? just have the fed print money and they're all sitting around having a good time. this is not a sustainable ideas. they've taken themselves captive and that's why we are in a dangerous time. [inaudible]

>> it's a good question but the whole idea of the dollar is a reserve currency is more or less a myth. a reserve currency in a fixed exchange rate system, where something has to be the settlement not set up your code, dollars, dollar basis hammerstein as it was in the 1920s. when you have a floating rate system where every government is manipulating and managing like japan does, like taiwan does, like all the rest of them do, the reserve currency has no meaning. they are buying dollars, putting them in their central bank, expanding their own money supply to keep their exchange rate down in the export machine mercantilist economic policy coupling. so what type name is the so-called reserve currency of the dollar is transformed into a

mechanism for us to burn money from everybody else in the world through their central banks and constantly pegging their currencies in intervening in the exchange market. if the convoy of monetary motel, the bombs going, but they never come out. if you look at the "usa today," 12 trillion total outstanding, 5 trillion central banks. that's unnatural. what if political banks stop buying to reach the point they can't buy anymore? on the margin you need real at risk investors to buy a chunk dollars in debt a year or even more and not through the day of reckoning arrives. >> first of all, big round of

applause. [applause] speed and accuracy luck -- ..