“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: Continue reading »
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. Continue reading »
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%. Continue reading »
– 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? Continue reading »
– Barack, We Hardly Knew Ye (David Stockman’s Contra Corner, Sep 11, 2014):
With your drums and guns and guns and drums, hurroo, hurroo
With your drums and guns and guns and drums, hurroo, hurroo
With your drums and guns and guns and drums
The enemy nearly slew ye
Oh my darling dear, Ye look so queer
Johnny I hardly knew ye…..
This memorable stanza from the classic anti-war song could not be more apt with respect to Barack Obama. He became President because he campaigned across the land draped in the garlands of peace. Yet he has now promised to spend his final three years in the White House smearing his face with war paint and strutting around the imperial city marshalling his “drums and guns and guns and drums”.
And let’s be clear. The President’s so-called “counter-terrorism” campaign—-that special kind of violent eruption which isn’t a “war”—-is not really about punishing some barbarians who have beheaded two innocent Americans and who have also recruited perhaps a dozen not so innocent Americans to join their blood-thirsty ranks. Civilized adults just do not start a war on the other side of the world on account of such thin gruel, as horrific as the actions involved might be. Continue reading »
From the interview:
Stockman: “Train wreck is a pretty good term to describe what is coming. But this train wreck isn’t simply going to hit a wall out of the blue. Actually, it has been forming and accumulating and expanding for many years now, and yet it has simply been ignored, particularly by the financial markets which have ridden this bubble to these extreme and historic heights.
But when you take the balance sheet of the Fed from $900 billion to $4.5 trillion in less than 70 months, and when that pattern is replicated around the world, that is a train wreck in slow motion. The only issue is, when does it hit the wall? The answer to that question is it’s not very far down the road, and I can promise you that is when all hell is going to break loose.”
– David Stockman Interview On Today’s Turbulent Financial Markets: “Stay Out Of Harm’s Way” (David Stockman’s Contra Corner, Aug 10, 2014):
Eric King: “David, the man who is counsel to big money around the world, Michael Belkin, just spoke with KWN and issued a dire warning for the financial markets. I just wondered how you see things at this point with the Dow recently tumbling and everything that is happening across the globe? What should we expect?” Continue reading »
Published on Aug 3, 2014
Full description and discussion at: http://www.peakprosperity.com/podcast…
David Stockman, former director of the OMB under President Reagan, former US Representative, best-selling author of The Great Deformation, and veteran financier is an insider’s insider. Few people understand the ways in which Washington DC, The Fed, and Wall Street work and intersect better than he does.
He’s extremely concerned by the “perfect storm” he sees of concurrent failures in US policy across foreign, monetary, economic, and fiscal fronts.
“There is a war coming in Europe,” he said. “Do you really think this matters?”
– Top Financial Experts Say World War 3 Is Coming … Unless We Stop It (Washington’s Blog, July 30, 2014):
Nouriel Roubini, Kyle Bass, Hugo Salinas Price, Charles Nenner, James Dines, Jim Rogers, David Stockman, Marc Faber, Jim Rickards, Paul Craig Roberts, Martin Armstrong, Larry Edelson, Gerald Celente and Others Warn of Wider War
Paul Craig Roberts – former Assistant Secretary of the Treasury under President Reagan, former editor of the Wall Street Journal, listed by Who’s Who in America as one of the 1,000 most influential political thinkers in the world, PhD economist – wrote an article yesterday about the build up of hostilities between the U.S. and Russia titled, simply: “War Is Coming”. In the article, Roberts notes: Continue reading »
Tags: Barack Obama, Charles Nenner, David Stockman, Economy, Gerald Celente, Global News, Government, Hugo Salinas Price, James Dines, Jim Rickards, Jim Rogers, Kyle Bass, Larry Edelson, Marc Faber, Martin Armstrong, Middle East, Military, Nouriel Roubini, Obama administration, Paul Craig Roberts, Politics, Society, U.S.
– Here’s What Wall Street Bulls Were Saying In December 2007: Read And Take Cover! (David Stockman’s Contra Corner, July 28, 2014):
The attached Barron’s article appeared in December 2007 as an outlook for the year ahead, and Wall Street strategists were waxing bullish. Notwithstanding the advanced state of disarray in the housing and mortgage markets, soaring global oil prices and a domestic economic expansion cycle that was faltering and getting long in the tooth, Wall Street strategists were still hitting the “buy” key. In fact, the Great Recession had already started but they didn’t have a clue:
Against this troubling backdrop, it’s no wonder investors are worried that the bull market might end in 2008. But Wall Street’s top equity strategists are quick to dismiss such fears.
Indeed, with the S&P 500 at an all-time high of 1460, the dozen top Wall Street prognosticators surveyed by Barron’s anticipated still more index gains during 2008: Continue reading »
– Why Financial Reporters Are Clueless: They Copy And Paste Keynesian/Wall Street Propaganda (David Stockman’s Contra Corner, June 25, 2014):
By David Stockman, former director of the Office of Management and Budget (1981–1985)
This morning’s Q1 GDP revision might have been a wake-up call. After all, clocking in a -2.9%—-cold winter or no—it was the worst number posted since the dark days of Q1 2009. Well, actually, it was the fourth worst quarterly GDP shrinkage since Ronald Reagan declared it was morning again in American 30 years ago.
Lindsey Williams is NOT an expert (in my opinion).
– Dent, Faber, Celente, Maloney, Rogers – What Do They Say Is Coming In 2014? (Economic Collapse, Dec 12, 2013):
Some of the most respected prognosticators in the financial world are warning that what is coming in 2014 and beyond is going to shake America to the core. Many of the quotes that you are about to read are from individuals that actually predicted the subprime mortgage meltdown and the financial crisis of 2008 ahead of time. So they have a track record of being right. Does that guarantee that they will be right about what is coming in 2014? Of course not. In fact, as you will see below, not all of them agree about exactly what is coming next. But without a doubt, all of their forecasts are quite ominous. The following are quotes from Harry Dent, Marc Faber, Gerald Celente, Mike Maloney, Jim Rogers and nine other respected economic experts about what they believe is coming in 2014 and beyond…
– David Stockman Rages Market “Valuation Has Lost Any Anchor To The Real World” (ZeroHedge, Dec 9, 2013):
The current malaise of news, data, and spin is “meaningless,” David Stockman tells Bloomberg’s Tom Keene, adding that markets are exhibiting “the kind of speculative froth you get at the top of a cycle where valuation loses any anchor in the real world; from earnings or the prospects of the economy.” As he argued before, “owning stocks here is very dangerous,” and despite Keene’s best efforts to denigrate Stockman’s “of course it’s a bubble,” perspective; the former inside-man exposes the hard mathematical truths of valuations, performance, and reality in this brief clip. Who is to blame – The Fed or Wall Street? “It is a question of who has taken whom hostage,” Stockman concludes ominously, “it’s a co-dependency… it’s very dangerous.”
“Wall street demands that the Fed keeps dishing out the liquidity, keeps dishing out the monetary heroin…
– David Stockman: The Entire Economy Is A Ponzi Scheme!
– David Stockman Explains The Keynesian State-Wreck Ahead – Sundown In America (ZeroHedge, Oct 5, 2013):
David Stockman, author of The Great Deformation, summarizes the last quarter century thus: What has been growing is the wealth of the rich, the remit of the state, the girth of Wall Street, the debt burden of the people, the prosperity of the beltway and the sway of the three great branches of government – that is, the warfare state, the welfare state and the central bank… What is flailing is the vast expanse of the Main Street economy where the great majority have experienced stagnant living standards, rising job insecurity, failure to accumulate material savings, rapidly approach old age and the certainty of a Hobbesian future where, inexorably, taxes will rise and social benefits will be cut… He calls this condition “Sundown in America”.
SUNDOWN IN AMERICA: THE KEYNESIAN STATE-WRECK AHEAD
Remarks of David A. Stockman at the Edmond J. Safra Center for Ethics, Harvard University, September 26, 2013
The median U.S. household income in 2012 was $51,000, but that’s nothing to crow about. That same figure was first reached way back in 1989— meaning that the living standard of Main Street America has gone nowhere for the last quarter century. Since there was no prior span in U.S. history when real household incomes remained dead-in-the-water for 25 years, it cannot be gainsaid that the great American prosperity machine has stalled out.
Even worse, the bottom of the socio-economic ladder has actually slipped lower and, by some measures, significantly so. The current poverty rate of 15 percent was only 12.8 percent back in 1989; there are now 48 million people on food stamps compared to 18 million then; and more than 16 million children lived poverty households last year or one-third more than a quarter century back.
Likewise, last year the bottom quintile of households struggled to make ends meet on $11,500 annually —-a level 20 percent lower than the $14,000 of constant dollar income the bottom 20 million households had available on average twenty-five years ago.
– OMB’s Stockman: “We’re At The Fiscal Endgame” (ZeroHedge, July 16, 2012):
To those on the hill and elsewhere who suggest this growing ‘fiscal cliff’ and ‘debt ceiling’ crisis will all get solved, former Office of Management and Budget (OMB) Director David Stockman tells Bloomberg TV that “they will punt, punt, punt and kick the can with partial solutions driven by eleventh hour crisis-based extensions that will go on for the whole of the next term!” When asked whether this economy will be mired in the doldrums, he rather ominously states “it will be worse, because we will be in recession” and notes that when the lame ducks re-look at the budget numbers with a realistic recession (instead of the current assumption of no recession within 12 years) it will be far worse and in a political environment where ‘we cannot possibly raise taxes – and we cannot possibly cut spending’. With a 78% disapproval rating for the ‘do nothing’ Congress, Stockman is surprised that 16% somehow approve – approve of what? His warning is that unlike in past periods, today “we are completely paralyzed, there is an ideological divide on taxes and entitlement like we’ve never had before” and while he realizes that “the debt problem doesn’t become a debt problem until the market suddenly have a wake up call and realize that if the Fed doesn’t keep printing, it’s game over.”
“The fact that rates are so low is not a reflection of the US as a safe-haven but a bet on the Fed not allowing rates to rise.”
“The perverse low-rate environment simply tells Congress that they can borrow a trillion dollars for 10 billion a year.”
If rates rose then it would break this huge partisan stalemate we have today”
“There is a huge costs to stalemate!”
In a little under six minutes, David factually describes the certainly-not-priced-in dismal reality of the political situation we face in the next few months… must watch…
– Stockman: Warns on U.S. “Bond Armageddon”; First Default Could Be to IMF (EconoyPolicy Journal, June 21, 2011):
David Stockman, former Budget Director under Ronald Reagan, told CNBC’s Nicole Lapin that the first default by the United States government could be a payment to the International Monetary Fund. Lapin reports:
He said that this careless “shoveling” of money could lead to a default here in the U.S.— and suggested that the first default will be on our payments to the IMF.
Overall, Stockman doesn’t think much of the IMF or what the rescue attempts of the PIIGs are doing in Europe. Lapin again:
We’re doomed on both sides of the pond, he told me on the set of “Worldwide Exchange,” and he didn’t hold back in name-calling the “lunatics” responsible for our global fiscal mess—especially the EU and the IMF.
In Europe, Stockman raged against a dichotomy of tax and debt slavery created by the EU: “They’re attempting to go turn the prudent Europeans of the north into permanent tax slaves in order to bail out the big banks in France and Germany and elsewhere who don’t deserve a bailout,” he said, adding that, “In order to accomplish that, they will attempt to turn the millions the of people who live in southern Europe into permanent debt slaves in order to pay the piper from the guarantees coming from the north.”…“The IMF is an absurd institution,” he said. “It’s destructive. It’s the source of holding this whole thing together with bailing wire.”
“And the sooner their number is called, he said, “The better off I think we’ll all be.”
What does he think of the U.S. situation? He told Lapin:
First off, as an investor, he’s short bonds and warned me of “bond Armageddon,” where rates could potentially go up to five percent.