This is How the Clintons Killed our Economy [VIDEO]

Bill Clinton could not create an economic boom but the Federal Reserve used interest rates to manufacture one that led to our horrible economy today.

Where did our horrible economy come from? Most people blame George Bush or Barack Obama. Both could be blamed for making irresponsible and economically destructive decisions. But the seeds of our horrible economy had been planted much earlier.

Hillary Clinton has used the myth that Bill Clinton knows how to fix the economy and caused job growth to compensate for her and Obama’s obvious economic incompetence. I mentioned pointed out that Bill Clinton can’t help, but the video above goes into more detail.  They refer to an essay written by David Stockman in which he writes:

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In fact, the roaring tech era prosperity was but an old fashioned crack-up boom. That is, a simulacrum of prosperity that was an artifact of monetary inflation and financial speculation. It was not merely unsustainable; it was guaranteed to boomerang against the future, and it has in spades.

The Greenspan Boom was thus the very fount of the financial toxins which have plagued this century. To wit, the housing and credit implosions after 2007, the stock market meltdown and the collapse of the Wall Street gambling houses in 2008-2009, the disabled, stall-speed main street economy since the crisis, the unspeakable windfalls to the 1% enabled by NIRP and QE and the desperation in the flyover zone of America that begat Donald Trump—-all had their roots in the 1990s monetary perfidies of Easy Al.

As Stacey Herbert and Max Keiser remind us, debt pulls wealth out of the future and consumes it in the present. This was Alan Greenspan’s policy. It “worked.” Lower interest rates caused a spending boom. Basically, hearkening back to Clinton era “prosperity” is like a family facing bankruptcy recalling fondly the days when they maxed out their credit cards and wondering why they can’t get those days back. The reason why they are facing bankruptcy is because they spent so much.

That was the story of the Clinton nineties. Savings declined and “growth” was borrowed from the future.

As it happened, however, the household savings rate plunged from 10% in late 1992 to 4% by the end of 2000. At the same time, total credit market debt outstanding soared from $15.8 trillion to $28.6 trillion or at a 7.7% annual rate.

This surging growth of household, business and financial sector debt far outpaced the growth of nominal GDP, which increased at a 5.5% annual rate. Consequently, the quintessential feature of Bubble Finance was off to the races.

To wit, during the Clinton Presidency credit market debt outstanding rose by nearly $13 trillion or by 3.4X the $3.7 trillion expansion of nominal GDP during the period.

So the reason for our horrible economy is the profligate borrowing and spending initiated during the Clinton presidency.

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