The New Empire of Debt: The Rise and Fall of an Epic Financial Bubble (55 page)

2
Gardner Ackley, memo to Lyndon B. Johnson, July 30, 1965.

3
Lyndon B. Johnson, State of the Union Address, January 12, 1966.

4
Joseph Califano,
The Triumph and Tragedy of Lyndon Johnson,
Touchstone Books, 1992.

5
Ibid.

6
Ibid.

7
Ibid.

8
The Columbia Electronic Encyclopedia,
copyright © 2005, Columbia University Press.

Chapter 9 Reagan’s Legacy

1
Claes G. Ryn, “Appetite for Destruction: Neoconservatives Have More in Common with French Revolutionaries Than American Traditionalists
,” American Conservative,
January 19, 2004.

2
Ross MacKenzie, “The Reagan Legacy: He Led a Revolution. Will It Survive?”
Economist,
June 10, 2004.

3
Ronald Reagan, Inaugural Address, January 20, 1981.

4
Murray N.Rothbard,“Repudiating the National Debt,” Ludwig von Mises Institute, posted Friday, January 16, 2004,
http://www.mises.org/fullstory.aspx?control=1423&id=74
.

5
Rod Martin,
Thank You, President Bush: Reflections on the War on Terror, Defense of the Family, and Revival of the Economy.
World Ahead Publishing, August 30, 2004.

6
Ibid.

7
Jude Wanniski, “A Chinese/Asian Currency Zone?”
http://www.wanniski.com/showarticle.asp?articleid=4529
.

Chapter 10 America’s Glorious Empire of Debt

1
David H. Levey and Stuart S. Brown, “The Overstretch Myth,”
Foreign Affairs,
March/ April 2005.

2
H. A. Scott Trask, “Perpetual Debt: From the British Empire to the American Hegemon,” Ludwig von Mises Institute, posted January 27, 2004.

3
Thomas Jefferson to James Madison, September 6, 1789.

4
Ron Suskind,
The Price of Loyalty: George W. Bush, the White House, and the Education of Paul O’Neill,
Simon & Schuster, 2004.

5
Alan Greenspan at the Adam Smith Memorial Lecture, Kirkcaldy, Scotland, February 6, 2005.

6
George Orwell, “The Lion and the Unicorn: Socialism and the English Genius,” essay, 1941.

7
James Surowiecki,
The Wisdom of Crowds,
Anchor, 2005.

8
F. A.Von Hayek,“The Pretence of Knowledge,” Nobel Memorial Lecture, December 11, 1974.

9
Richard Duncan, “How Japan Financed Global Reflation,” ANDONGKIM, May 20, 2005.

10
Ibid.

11
See note 1.

12
Ibid.

1
http://www.princeton.edu/pr/news/03/q2/0612-brain.htm
.

2
“Dennis Kucinich on Free Trade” On the Issues,
http://www.issues2000.org/2004/Dennis_Kucinich_Free_Trade.htm
.

3
Alan Greenspan at the Adam Smith Memorial Lecture, Kirkcaldy, Scotland, February 6, 2005.

4
Robert McTeer, Dallas, 2001.

5
Edmund L. Andrews, “Greenspan Shifts View on Deficits,”
New York Times,
March 16, 2004, section A, column 1, page 1.

6
http://www.census.gov/prod/www/abs/decennial.html
.

7
See note 3.

8
Ibid.

9
Stephen Roach,“Global:ConfessionTime.”Global Economic Forum,Morgan Stanley, February 7, 2005,
http://www.morganstanley.com/GEFdata/digests/20050207-mon.html
.

Chapter 12 Something Wicked This Way Comes

1
Thomas Friedman,
New York Times,
March 8, 2004.

2
Ibid.

3
Ibid.

4
“Outrage and Silence,” Thomas L. Friedman,
New York Times,
May 20, 2005.

5
Paul Craig Roberts, Counter Punch, March 16, 2005,
http://www.counterpunch.org/roberts03162005.html
.

1
David Streitfeld, “They’re In—But Not Home Free,”
Los Angeles Times
staff writer, published April 2, 2005.

2
Ibid.

3
Ibid.

4
Joyce Cohen, “The Hunt: Becoming a Mogul, Slowly,”
New York Times,
April 10, 2005, late edition—final, section 11, column 1, page 12.

5
Ibid.

6
Warren Buffett and Charlie Munger, Berkshire Hathaway shareholders meeting, April 30, 2005.

7
Jane Hodges, “Flipping Real Estate . . . Without Getting Burned,”
Seattle Times,
May 3, 2005.

8
Ibid.

9
Testimony of Chairman Alan Greenspan, Federal Reserve Board’s semiannual Monetary Policy Report to the Congress before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, February 16, 2005.

10
Dan Ackman, “Retirement Doomsday,”
Forbes,
May 4, 2005.

11
Alan Greenspan, at the Federal Reserve System’s Fourth Annual Community Affairs Research Conference,Washington, DC, April 8, 2005.

12
William Shakespeare,
The Tempest,
Act iii, Scene 2.

1
Richard C. Koo,
Balance Sheet Recession: Japan’s Struggle with Uncharted Economics and Its Global Implications
, John Wiley & Sons (Asia) Pte Ltd, Singapore, 2003, p. 284.

2
William Bonner and Addison Wiggin,
Financial Reckoning Day: Surviving the Soft Depression of the 21st Century
, John Wiley & Sons, 2003.

1
Peter Thal Larsen, “Goldman Pays the Price of Being Big,”
Financial Times
, August 13, 2007.

2
Citigroup Inc., Q3 Earnings Call Transcript, October 16, 2008.

3
James Howard Kunstler, speech in Vancouver for SFU urban studies program, “Challenges to Cities and Agriculture from Peak Oil,” January 24, 2008.

4
Economagic: Economic Time Series Page,
http://www.economagic.com/em-cgi/data.exe/var/togdp-householdsectordebt
.

5
Robert Plummer, “Madoff Millions Vanish into Thin Air,” BBC News, December 15, 2008.

6
“Citigroup’s Chuck Prince Stops Dancing,” Wcomimportuser1,
Time.com
, November 4, 2007.

7
“Keep Your Shirt On,”
Economist.com
, August 5, 2007.

8
Ron Chernow,
The House of Morgan:An American Banking Dynasty and the Rise of Modern Finance
, Grove Press, 2001.

9
Andrew Clark and Elana Schor,“Lehman Brothers Chief Executive Grilled by Congress over Compensation,”
Guardian.co.uk
, October 6, 2008.

10
Christine Harper, “Morgan Stanley Said to Be in Talks with China’s CIC (update 2),”
Bloomberg.com
. September 18, 2008.

11
Ruth Gledhill,“The Archbishop of Canterbury Speaks in Support of Karl Marx,”Times-Online, September 24, 2008.

12
Garrison Keillor, “Garrison Keillor: Where Were the Cops?”
International Herald Tribune
, September 25, 2008.

13
“Why Paulson Is Wrong,” Luigi Zingales, Robert C. McCormack Professor of Entrepreneurship and Finance, University of Chicago, September 21, 2008,
http://www.voxeu.org/index.php?q=node/1670
.

14
HR 1424 Library of Congress.

15
Nathaniel C. Nash, “Let Banks Enter Securities Field, Greenspan Says,”
New York Times
, November 19, 1987.

16
Andrew Balls, “Greenspan Relaxed about House Prices,”
Financial Times
, May 21, 2005.

17
Jessica Holzer, “Greenspan Sees a Soft Landing,”
Forbes.com
, October 26, 2006.

18
Speech by Chairman Ben S. Bernanke at the Federal Reserve Bank of Chicago’s 43rd Annual Conference on Bank Structure and Competition, Chicago, Illinois, May 17, 2007.

19
David Jackson, “Bush: U.S. Is Not Headed into a Recession,”
USA Today
, February 28, 2008.

20
Michael M. Phillips and Greg Ip, “Henry Paulson Dismisses Mortgage Rescue Plans,”
Wall Street Journal Online
, February 29, 2008.

21
Gabriel Madway, “Paulson: Subprime Mortgage Fallout ‘largely contained’,”
MarketWatch,
March 13, 2007.

22
“Bear Sterns CEO: No Liquidity Crisis for Firm,” CNBC.

23
Stephen Labaton, “Agency’s ’04 Rule Let Banks Pile Up New Debt,”
New York Times
, October 2, 2008.

24
Jeannine Aversa, “Bernanke: Fannie, Freddie in No Danger of Failing,”
USA Today
, July 16, 2008.

25
George W. Bush, Speech to the Nation on Financial Crisis and Economic Recovery Plan, September 24, 2008.

26
Brian Wingfield and Josh Zumbrun, “The Paulson Plan: Bad News for the Bailout,”
Forbes.com
, September, 23, 2008.

27
“Paulson Defends Federal Financial Rescue Effort” (transcript), NewsHour with Jim Lehrer, PBS, November 13, 2008.

28
Anton Antonowicz, “Barack Obama’s Victory Changes the World,”
The Mirror
, November 6, 2008.

29
“U.S. Elects President Obama,” editorial,
The Guardian
, November 5, 2008.

30
Bernard-Henri Levy, “Obama Arouses a Wild Yet Reasonable Hope,”
Financial Times
, November 5, 2008.

31
Ibid.

32
David Brooks, “Revolt of the Nihilists,”
New York Times
, September 30, 2008.

33
Martin Wolf, “Congress Decides It Is Worth Risking Depression,”
Financial Times
, September 30, 2008.

34
Murray N. Rothbard,
America’s Great Depression
, Fifth Edition, The Ludwig von Mises Institute, 2000.

35
Alex Kerr,
Dogs and Demons:Tales from the Dark Side of Japan
, Hill and Wang, 2001.

36
Ralph T. Foster,
Fiat Paper Money:The History and Evolution of Our Currency
, Foster Publishing, Coin and Stamp, 2008.

37
Remarks by Governor Ben S. Bernanke before the National Economists Club, Washington, DC, November 21, 2002.

38
“Les Bourses de Paris, Londres et Francfort clôturent en forte baisse,”
Le Monde
, January 14, 2009.

39
http://www.rbz.co.zw/pdfs/2008%20MPS/AprilMPS2008.pdf
.

40
The Crisis and the Policy Response. Remarks by Ben S. Bernanke, Chairman Board of Governors of the Federal Reserve System at the Stamp Lecture. London School of Economics. London, England. January 13, 2009

41
Joseph Tainter,
The Collapse of Complex Societies
, Cambridge University Press, 1988.

42
Ibid.

43
Giovanni Battista (Giambattista) Vico,
Scienza Nuova (The New Science)
, 1725.

44
CNN Politics, “Commentary: Obama’s Lofty Ideas Lack Specifics.”
http://edition.cnn.com/2009/POLITICS/01/08/campbell.brown.obama/
.

45
“DoAsset Markets Really Provide Lifetime Buying Opportunities?” The Gloom,Boom & Doom Report, a publication of Mark Faber Limited, January 2009.

46
E. D. Hirsch,
The New Dictionary of Cultural Literacy
, Third Edition, Houghton Mifflin Company, Boston, 2002.

47
Thirty-Six Stratagems
, published in English by Harro von Senger, 1992, 2000.

48
“Bin Laden: Goal Is to Bankrupt U.S.,”
CNN.com
. November 2, 2004.

1
James Surowiekci, “Why Gold,”
New Yorker
, November 29, 2004.

Index

Ackley, Gardner

Adams, John Quincy

Afghanistan

Africa

Albigensia

Albright, Madeleine

Aldrich, Nelson W.

Alexander the Great

Alternative minimum tax

Al-Qaida

America/Americans:

borrowing habits

China, financial relationship with

getting poorer, not richer

national security

net worth

in 1980s

optimism in

perceptions of

personal savings

prosperity in