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Former Reagan Budget Director David Stockman on the need to reform entitlements in an effort to rein in spending.
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Is the united goes to -- right analysts -- -- -- that relates to the other side of the equation social insurance is a myth.
There are no trust funds there's just confetti paper of two point seven trillion.
That we're gonna have to Levy on taxpayers someday to pay off those so called assets.
Social insurance is a huge myth nobody -- -- -- security -- -- I would radically means tested I would cut it by a couple of hundred billion.
I would reduce the number of people who are affluent and -- you know there's 55 million people getting Social Security or Medicare today.
Reduce that dramatically grandfathered editors are not people know I don't know -- can't because we're broke.
You know art when you hear these AW goes out -- 3040 years is -- security because even -- and it's about taking it away because I'll be that SOB because the everyone who is taking here right now after thirty years didn't pay for what they're getting the payroll tax was never close.
To what would fine on an actuary.
Any added that it takes three years for you to get everything that people every year for many higher especially so what I'm saying is.
If we get rid of social insurance radically means test Medicare and Social Security we cut hundreds of billions.
Then defense it's crazy it's 670 billion go back to what I call the Eisenhower minimum.
400 billion in today's dollars inflated dollars is what Eisenhower said was enough in 1960 when -- -- up begins and we -- these -- Report that as -- the Breda yet so -- Republicans don't wanna touch that Democrats don't wanna touch the entitlement programs and here we've been.
And 10-Q and then you have Obama saying we need a hundred billion -- green energy.
That's pure boondoggle.
We don't don't need any green energy loans guarantees subsidies.
All of this nutty stuff that's been going on for solar electric cars what what it's not -- -- -- government do.
The government ought to provide minimally for the defense in -- foreign policy that is non interventionist and stays out of the affairs of the cellular carrier.
In that regard I absolutely -- look at the last forty years everything has been a fiasco Vietnam are you kidding Afghanistan.
What are we doing there after ten years Iraq was a total waste of lives in Frazier.
So the point is the military industrial complex as part of the problem that needs to be shrunk.
And social insurance supported by organized labor and the liberals is the other side -- the spending problem.
In -- to be radically changed in if we don't get at the military industrial complex and social insurance were kidding ourselves.
The budget is just gonna roll on the deficits are going to grow.
Then once I tonight as much of them are at least Soviet countries stands -- -- room -- I don't see any of big guns of them happens.
Well I think that's why I say the budget is a doomsday machine.
We're facing a permanent fiscal cliff of this.
-- percent of GDP gap.
I don't see it -- he easily I see a constant political battle every year there's going to be a debt ceiling prices.
Every few months later -- it is taking it out of congresses have the president.
-- -- -- -- you know you can have a dictatorship.
You basically gonna have to have a bad blow up in the financial markets.
If they don't comment yes I do because when I blame Bernanke more than anybody else for this whole mess providing -- easy money when he says you can borrow money.
For three years to pay the federal deficit at thirty basis points -- surrounding -- to congress that zero.
Why is anybody gonna stand up to social insurance the military industrial complex the -- subsidies which are ridiculous.
This bill with sixty billion dollar boondoggle -- passed her say they.
Relief.
Who's going to stand up to that stuff.
When the great man and the apples building which happens to be where the Fed is located says don't worry I'll take care of it.
I'll keep the interest rate -- -- -- rock Rodham I'll print the money I'll buy the bonds.
Until we have -- house cleaning and the fat.
Until we get rid of these lunatics who I kept interest rates at zero that nothing is going to happen on the budget.
-- -- -- You already hit my appetite has brought it was -- Jensen.
But -- good stuff to think about.
Where we don't do -- do it now David Stockman -- smartest.
Budget guys -- ever know.
Present an amendment that since they're gonna see here you're here.
