. >> these are not especially happy days for budget director david stockman. december issue of the atlantic monthly has a long article about stockman in which he's quoted as saying things he no doubtedly wished he had not said. >> i got an early copy. i couldn't believe it. the president gave a news conference that day. i kept waving my hand. he didn't call on me. so i chased him out. >> your budget director more or less says with the economic program is wrong. it creates inflationary -- >> he had no idea what i was talking about, clearly. so i broke the story that night that the budget director blew the whistle on this plan. >> what he still contends were off the record conversations, stockman expressed disillusion. stockman refers to naive supply siders. the whole reagan plan is premised on faith, said stockman. none of us understands what's going on with all tease numbers. premised on faith. >> it was very, very damaging. a lot of people wanted him fired, but i thought we had to keep him because he knew more about the budget than anybody. so i prevailed upo

. >> these are not especially happy days for budget director david stockman.issue of the atlantic monthly has a long article about stockman in which he's quoted as saying things he no doubtedly wished he had not said. >> i got an early copy. i couldn't believe it. the president gave a news conference that day. i kept waving my hand. he didn't call on me. so i chased him out. >> your budget director more or less says with the economic program is wrong. it creates inflationary -- >> he had no idea what i was talking about, clearly. so i broke the story that night that the budget director blew the whistle on this plan. >> what he still contends were off the record conversations, stockman expressed disillusion. stockman refers to naive supply siders. the whole reagan plan is premised on faith, said stockman. none of us understands what's going on with all of these numbers. it is premised on faith. >> it was very, very damaging. a lot of people wanted him fired, but i thought we had to keep him because he knew more about the budget than anybody. so i prevailed upon

ways our motto was provided many years ago by the -- an old budget director, and old and former, david stockmanonce said budgeting should be about focusing on weak claims and not we can climbants and ideally we would like a budget process that could ferret out the programs and others that aren't performing and make digses in some ways accordingly. so, basically, the notion of here is that we would take a group like higher education, where we have $130 billion of tax and spending programs across many different agencies, and we could look at what collective outcomes are they achieving achn terms of access by studentness higher education in terms of states and parents' spending on education, and a variety of other outcomes we care about. and we would kind of look collectively at how well the current portfolio programs is working. whether those programs in some way offset one another as they often do. whether they are kind of compliment one another, or whether there are some areas that appear to be more effective than others and that's the notion of this. we would take period -- pieces of the budge

the central banks and the economies -- we want to bring in now somebody who knows about this, david stockman, the former director of omb under president reagan. know about this interplay. this is my question. which is the chicken and which is the egg? are the economy is driving the economy, or are the central banks -- are the central banks driving the economy, or is the economy driving the central banks? >> the real economies in the world are freighted down with debt. there has been a massive credit bubble for the last 20 years. for ae had enough capex decade. as a result, we have way too many commodities. commodity prices are falling. the export industries are now shrinking everywhere in east asia. this morning you saw taiwan had negative gdp in the first quarter. exports are down 10% to 20% in china, korea, japan, and so forth. when we had is a world going through a deflationary adjustment from a long credit binge that the central banks cannot do anything about. if they pretend that somehow they are stimulating growth, the only thing they are doing is stimulating more speculation in the fi

. >> and you watch david stockman or any commercials on cable about the coming -- >> coming crisis. >ah, blah, blah, blah. $19 trillion is a lot. >> it is. >> but what's unclear the unfunded liabilities of medicare and social security of ten times -- i don't know if it's ten times -- five or six times as big as that. and he says he's not going to do anything with it. >> this is the problem with the entire interview that he did. he said he wants to pay off the entire $19 trillion debt in eight years by also cutting taxes by $10 trillion over ten years. i don't know how you do that without completely eliminating social security, medicare. you can't do it. things are not going particularly well for trump. a lot of his comments on the economy didn't make sense. these are voters thinking sthigs the guy we want to entrust with the economy. >> do you think that's who read that article that didn't come with the preconceived notion -- >> i think it filters through ultimately to the electric trort. my question is how often do you see a major candidate for president predicting a major recession