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If a former Reagan administration official is correct, we are likely to see the next major financial collapse by the end of 2017. According to Wikipedia, David Stockman “is an author, former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.” He has been frequently interviewed by mainstream news outlets such as CNBC, Bloomberg and PBS, and he is a highly respected voice in the financial community. Like other analysts, Stockman believes that the U.S. economy is in dire shape, and he told Greg Hunter during a recent interview that he is convinced that the S&P 500 could soon crash “by 40% or even more”…
“Middle class America just can’t see the wood for the trees. The last 65 years have been paradisic, but the end is coming and nobody sees it or worse, is even prepared to consider it.
All the pieces are in place, yet I’ve just been in contact with all my lot in the States & they’re either shocked about how the campaign against poor Hillary is going, or upset about the muck raking over Donald’s penchant for young girls. Is he really worse than Bill Clinton?
Nobody can grasp they are both from the Rothschild “end of America” stable.”
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The Red Chip casino took another one of its patented 6.5% belly flops this week. In fact, more than 1,300 stocks in Shanghai and Shenzhen fell by 10% – the maximum drop permitted by regulators in one day – implying that the real decline was far deeper.
This renewed carnage was the worst since, well, the last 6% drop way back on January 29, and It means that the cumulative meltdown from last June’s high is pushing 45%. And all this red chip mayhem did not come at an especially propitious moment for the regime, as the Wall Street Journal explained:
Why won’t the American people listen to the warnings? David Stockman was a member of the U.S. House of Representatives from 1977 to 1981, and he served as the Director of the Office of Management and Budget under President Ronald Reagan from 1981 to 1985. These days, he is running a website called “Contra Corner” which I highly recommend that you check out. Stockman believes that a global “debt super-cycle” that has been building for decades is now bursting, and he is convinced that the consequences for the U.S. and for the rest of the planet will be absolutely catastrophic. His findings are very consistent with what I have been writing about on The Economic Collapse Blog, and if Stockman is correct the times ahead of us are going to be exceedingly painful.
While we are used to David Stockman’s detailed and lengthy “nailing” of the real state of the world, the following brief clip of an interview with Fox Business, in which David explains how to ‘fix’ so many of our problems, can be summarized perfectly in just seven short words: “Replace The Fed with the free market.”…
– Can Kickers United—–Why It’s Getting Downright Hazardous Out There (Contra Corner, Aug 20, 2015):
It’s getting downright hazardous out there, and not just because the robo-machines were slamming the “sell” key today. The real danger comes from the loose assemblage of official institutions which claim to be running the world.
– Wall Street Still Didn’t Get The Memo—–China’s Done, Tops In! (David Stockamn’s Contra Cormner, July 28, 2015):
Bubblevision’s Scott Wapner nearly split a neck vessel today denouncing the US stock market sell-off. It was completely unwarranted, he thundered, because China don’t have nothin’ to do with anything.
The collapse of red capitalism in China is exporting gale force deflation to the global economy, meaning that the already evident rollover of world trade is just beginning its descent.
So S&P profits are not immune, not by a longshot. One of these days, perhaps soon, even Scott Wapner will get the memo.
– David Stockman Warns “It’s One Of The Scariest Moments In History” (ZeroHedge, March 1, 2015):
“The Fed is out of control,” exclaims David Stockman – perhaps best known for architecting Reagan’s economic turnaround known as ‘Morning in America’ – adding that “people don’t want to hear the reality and the truth that we’re facing.” The following discussion, with Harry Dent, outlines their perspectives on the looming collapse of free market prosperity and the desctruction of American wealth as policymakers “take our economy in a direction that is dangerous, that is not sustainable, and is likely to fully undermine everything that’s been built up and created by the American people over decades and decades.” The Fed, Stockman concludes, “is a rogue institution,” and their actions have led us to “one of the scariest moments in our history… it’s a festering time-bomb and we’re not sure when it will explode.”
– Europe’s Greek Showdown: The Sum Of All Statist Errors (David Stockman’s Contra Corner, Feb 10, 2015):
The politicians of Europe are plunging into a form of ideological fratricide as they battle over Greece. And “fratricide” is precisely the right descriptor because in this battle there are no white hats or black hits—-just statists.
Accordingly, all the combatants—the German, Greek and other national politicians and the apparatchiks of Brussels and Frankfurt—- are fundamentally on the wrong path, albeit for different reasons. Yet by collectively indulging in the sum of all statist errors they may ultimately do a service. Namely, discredit and destroy the whole bailout state and central bank driven financialization model that threatens political democracy and capitalist prosperity in Europe——and the rest of the world, too.
– The BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging (David Stockman’s Contra Corner, Oct 31, 2014):
This is just plain sick. Hardly a day after the greatest central bank fraudster of all time, Maestro Greenspan, confessed that QE has not helped the main street economy and jobs, the lunatics at the BOJ flat-out jumped the monetary shark. Even then, the madman Kuroda pulled off his incendiary maneuver by a bare 5-4 vote. Apparently the dissenters – Messrs. Morimoto, Ishida, Sato and Kiuchi – are only semi-mad.
Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year – a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP. And that comes on top of a central bank balance sheet which had previously exploded to nearly 50% of Japan’s national income or more than double the already mind-boggling US ratio of 25%.
– The Siege Of Kobani: Obama’s Syrian Fiasco In Motion (David Stockman’s Contra Corner, Oct 6, 2014):
Another humanitarian catastrophe may be just hours away at Kobani. The latter is the Syrian Kurdish town on the border with Turkey that is now surrounded by ISIS tanks and is being pounded day after day by ISIS heavy artillery. Already this lethal phalanx, which fuses 21st century American technology and equipment with 12th century religious fanaticism, has rolled through dozens of Kurdish villages and towns in the region around Kobani, sending 180,000 refugees fleeing for their lives across the border.
Self-evidently the lightly armed Kurdish militias desperately holding out in Kobani are fighting the right enemy—-that is, the Islamic State. So why has Obama’s grand coalition not been able to relieve the siege? Why haven’t American bombers and cruise missiles, for instance, been able to destroy the American tanks and artillery which a terrifying band of butchers has brought to bear on several hundred thousand innocent Syrian Kurds who have made this enclave their home for more than a century? Why has not NATO ally Turkey, with a 600,000 man military, 3,500 tanks and 1,000 modern aircraft and helicopters, done anything meaningful to help the imperiled Kurds?
Sept. 25 (Bloomberg) — Former Budget Director Under President Reagan David Stockman discusses central banks monetary policies and financial bubbles on “Market Makers.”