more with david stockman and david cohen, next. ♪ matt: david stockwell -- stockman is still with us.cs would have worked if it had been -- it was mainly proposed and not very much implemented. we had way too much increase in defense that put the budget into deep red ink. we had a tax cut we did not hold. we deregulated energy but not a lot of help, so therefore it is a great theory that remains 30 years later, still untested. question, a tutor given your experience under president reagan, running budget deficits, what do you think of u.s. fiscal policy? david: deficits become addictive. i left because i could not justify what we were doing. a tax cutade too big and too big a defense increase, but you could not get politicians to change course. that is where we are 30 years later, neither party will give any ground and what we have? $19 trillion in national debt and a 1981 we had $1 trillion in debt. now, politicians think that the debt is free. the weighted average cost on view,s 1.75% and in their it's a rounded error, it is not frightening. when we to go over in 1981, interest rate

coming up on "bloomberg ," david stockman will be with "bloomberg ," formerly with the reagann. stay with us. futures up three. this is "bloomberg surveillance ." ♪ tom: good morning, everyone. a lot of fun on "bloomberg surveillance." komal sri-kumar with us as well. we are going to do luxury as well. right now a morning must-read with vonnie quinn. what do we have? it is basically the idea that china's growth might be much worse than we thought, not a new view, but it puts some spin on it. they have a growth scenario that is far more pessimistic than official or private numbers would have us believe. time will tell, but i would not bet on a quick bounce of chinese growth, at least not a real one. isthis case, noah smith blaming banks and that revenue is not coming in. how bad is china growth? the growth target was to 6.5 percent officially. but having been to china twice this year, i think the various sectors are running more about 5% or less. vonnie: even that may be optimistic, at least according to this editorial and others. sri-kumar: it would be, and this is the problem

what david stockman told us they would do, which was to create such a fiscal mess that we would have to attack important method 40's. i won't let myself be put in that box. i don't think the american people ought to be put in that box. back ofot balance the $9,000 people who are on or $10,000 social security. the social security trust fund ought to be taken out of the budget. this is a phony budget balancing exercise. the trust fund can only be used for social security. there's 20 of money in the trust fund or cost-of-living increases. trying to show a lower deficit by showing a cost of living is phony and bad policy. repeatedly and i will say it repeatedly in the campaign and afterwards, no serious candidate can rule out taxes. i have also said emphatically and will continue to say when there's $110 billion in uncollected taxes, the first and you ought to do is go collect everything you can of that 110 billion dollars. if you need additional taxes, you ask for additional taxes. i think that's very straightforward and direct. i think it is unfair and unnecessary to be talking about e

alix: that was david stockman on .berg bill ackman long on the stock and says the stock could go over $400. a huge rift in that community. coming up in the next 20 minutes ," janetmberg markets yellen has markets on the move after saying a december rate hike is a live possibility. the volkswagen scandal is becoming the gusher that cannot be cap. it sounds a lot like bp and we will have the latest. facebook set to report its latest quarter after the bell. what is concerning investors this time around. we will have the preview. ♪ welcome back. it is time now for the bloomberg business flash. companies added 182,000 workers in october. the latest report from adp research institute signals a steady improvement in the u.s. job market. $90,000 -- 90,000 rise by 37,000ls may climb workers last month. the u.s. trade gap shrieking in september to a seven envelope. the deficit decreasing 50% of 40.8 billion here the august number was revised from 48 billion as demand from petroleum produced abroad fell to its lowest level in more than a decade while exports climbed. count steve jobs among

david stockman is here. one of the best economic financial mindset i know.ne week ahead of our big fox business debate. i would imagine the stock would be itching to get in there and get some questions on our deficit. overall financial whiz with us now. >> obviously and unfortunately the republican party is broke, dysfunctional and useless. by that, i mean fiscal rectitude. getting our 19 trillion debt under control. free-market capitalism. why? the republican party has been basically hijacked by big government. the only concern about the pentagon budget. willing to trade anything in domestic policy to support interventions. we saw that last week in the total to pick two laois and on the debt ceiling. basically, they do not understand it is not the government's business what goes on in your bedroom and are so upset by this immigration, building laws and policing every lawyer in the country about whether he is hiring someone that is legal or not that they are missing and are on alike the book. the non-interventionist, the small government budget balances are

yesterday we set out -- sat here with david stockman and said he must not read it.e to it. "courage to print." erik: john had a front row seat. john: most of the books that are written is history as they would like it to be remembered. stephanie: isn't that the way history works? isn: elements of that book the history as they wanted to be remembered. i think there is no question that the single biggest mistake of the financial crisis was allowing lehman brothers to go bankrupt in an uncontrolled way. everyone who was part of that process has made of reasons why that happened. but the fact is it was a mistake. stephanie: i think there is no question that john is the next 30 -- an extra ordinary television guest. he has been ceo of the cit group. i know you're out to lunch across me. we have to take a break. hold on. send us a tweet. john, i know you have lots of questions and we will have a lot more when we return. you are watching "bloomberg ." ♪ ♪ erik: welcome back. john is the ceo and chairman of cit. you have some five months or slightly less left in the ro

stockman,blamed david all those people for trying to undercut the tax policy that reagan had put forwardn 1981. he thought that reagan was being by the secretary of state, which i think is completely wrong. reagan's diaries show that what scholz was doing was exactly what reagan wanted. was against him on that and i think he was wrong. but fundamentally he always said good things about reagan. guest: i think the caller does have a point. that is the notion that reagan mp were -- camp -- ke just pals all the time was really not true. really pushed him to go further. he pushed against these tax increases. veered away from the original tax cut of 1981, but at one point if you are ever this, emp evenen demanded -- k demanded that reagan fired george scholz. reagan had no intention of doing that. he was close to george scholz who really did represent his view. but there were times when reagan was at that jack kemp past because he was pushing so hard for what he believed in. staff the white house that dumped to the press day after day all these negative how he was putting his ambition ahead of