David Stockman: "The Error Of Central Banking Has Become Universal"

Tyler Durden's picture

In the old normal ("when we had an honest Fed," under Volcker), David Stockman explains to CNBC's Rick Santelli, "the market could judge what Congress and the White House was doing and decide where the risk/reward equation was and how to price the bond, the note, the bills," but in the new normal, "today, the market is entirely rigged." Stockman is no fan of deficits and as he notes "is no fan of money-printing," pointing out that "it's not honest," for the Fed to fund these chronically growing deficits and "created an unsustainably dangerous financial system." In thie brief interview, Stockman (of The Great Deformation fame) sums it up perfectly to a just-as-concerned Santelli, when he notes, "the error of central banking has become unversal." We're taxing the futures generations, he concludes, "they're going to thank you for the massive disaster that was handed to them." The honesty will never come...


"You have both parties in the military complex and we're still spending billions for defense.


So the honesty will be in the raising of taxes.


The honesty will come when you tell the middle class you're not going to get a tax cut - you're going to pay more.


Then they will wake up.


Then they will march on Washington and demand that we do something about the giant programs that are drifting today because everybody thinks the Fed will take care of the debt."


Well worth the price of admission:

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francis_sawyer's picture

"("when we had an honest Fed," under Volcker)"...


Volcker was the last "non-cheesepope" Fed Chair... [but u never really know because he later went on to work for Rothschild]...

SWRichmond's picture

The honesty will come when you tell the middle class you're not going to get a tax cut - you're going to pay more.


Raising taxes would only encourage still more spending.  "They" have already learned they can get away with $1Trillion+ deficits forever, so the deficits would just continue.

Pladizow's picture

Reading ZH for 3yrs+ has made me "EXHAUSTIPATED" - Too tired to give a shit!

If you start with a cage containing five monkeys and inside the cage, hang a banana on a string from the top and then you place a set of stairs under the banana, before long a monkey will go to the stairs and climb toward the banana.

As soon as he touches the stairs, you spray all the other monkeys with cold water.

After a while another monkey makes an attempt with same result ... all the other monkeys are sprayed with cold water. Pretty soon when another monkey tries to climb the stairs, the other monkeys will try to prevent it.

Now, put the cold water away.

Remove one monkey from the cage and replace it with a new one.

The new monkey sees the banana and attempts to climb the
stairs. To his shock, all of the other monkeys beat the crap out of him.  After another attempt and attack, he knows that if he tries to climb the stairs he will be assaulted.

Next, remove another of the original five monkeys, replacing it with a new one.

The newcomer goes to the stairs and is attacked. The previous newcomer takes part in the punishment...... with enthusiasm, because he is now part of the "team".

Then, replace a third original monkey with a new one, followed by the fourth, then the fifth. Every time the newest monkey takes to the stairs, he is attacked.

Now, the monkeys that are beating him up have no idea why they were not permitted to climb the stairs. Neither do they know why they are participating in the beating of the newest monkey.

Finally, having replaced all of the original monkeys, none of the remaining monkeys will have ever been sprayed with cold water.  Nevertheless, not one of the monkeys will try to climb the stairway for the banana.

Why, you ask? Because in their minds...that is the way it has
always been!

This, my friends, is how Congress operates... and this is why,
from time to time:

ALL of the monkeys need to be REPLACED AT THE SAME TIME.

fonzannoon's picture

Don't limit that example to congress.

I would add Buying gold.

I would add shorting stocks

I would somehow say that example explains how they got the monkeys to buy the dip.

The variable is when you start adding Japanese monkeys. Something is going to cause this machine to break.

HulkHogan's picture

Like commenting on good stocks to buy on a ZH forum.

Supernova Born's picture

"The middle class will wake up and march with pitchforks and torches."

There is going to be a "middle class"?

The only people marching on Washington in the future will be 30 million+ dependent "new citizens" demanding to go full retard communist while EXPANDING government programs.

Latin America Norte. That is the future.

SafelyGraze's picture

a discussion of "honesty" by controlledOp1 and controlledOp2, on a "set" in the "pit" of the "nyse" by "cnbc" .. with "background noise"


and it was "filmed" .. "live"

pan the cameras

show the people wearing the clown costumes and the security costumes and the spiderman costumes and the trader costumes

puppet theater

cue the laugh track

KnightTakesKing's picture

I hear AAPL is an attractive buy at this level. I mean come on, we all need to replace our iPads and iPhones.


freewolf7's picture

Nice lab experiment.
Two things:
We're not in a cage.
The "cage" is our beliefs.

Walk it back.
We can do something
about the asshole spraying us.

SMG's picture

Great point, really.  Thanks!

kridkrid's picture

No cage, as long as you do as you are told, and aren't profiled, and believe in victimless crimes, and believe that freedom isn't free, and income tax and property tax is moral, etc. perhaps it's belief that obscures the cage.

krispkritter's picture

WHY do you guys always have to bring monkeys into it?!? I'm on your side!  

Can't you just say "If you start with a cage containing five CongressCritters and inside the cage, hang a stack of $1000 bills on a string from the top and then you place a set of stairs under the bills, before long a Critter will go to the stairs and climb toward the bills..."

Demonoid's picture

Change "stack of $1000 bills" to "roll of trillion dollar coins" and you'll have my doubleplusgreenarrow.

Silver Bully's picture

'ALL of the monkeys need to be REPLACED AT THE SAME TIME.'

Let's sober up for a moment, shall we?

We have 72 million monkies using Medicaid.

We have nearly 50 million monkies on Foodstamps.

We have nearly 9 million working monkies on disability.

Remember this when you say 'ALL of the monkeys need to be REPLACED AT THE SAME TIME.'


The only way to replace all those monkies is a nice genocidal war, or let them starve to death. Good luck with that.

goBackToSleep's picture

This is quite simple really, that's what you are there for. You are going to kill them. Not all of them, but when they come to you, you will kill them with either a decision or a bullet. That is the real truth. It's quite an ingenious plan really. The elites wont even have to lift a finger, and their debt based system will be reset to zero. Think of them as the walking dead. That's what they are. They're dead and they don't even know it yet.

MrBoompi's picture

Agreed.  The honesty will only come when there are no more loopholes and offshore accounts, and corporations and the wealthy start paying their fair share, even if that means we have to pass a repressive tax like a flat tax to do it.  How about we try forcing everyone to pay 15%, including corporations, no deductions or exemptions?  Now that would be honest.

orez65's picture


What would be honest is to use gold and silver as money.

No more fiat money nor fractional reserve banking.

Regulations, "fair taxing", class warfare are "red herrings". 

Colonel Klink's picture

May want to check your facts on that.  Google the two words.  Don't believe the official story.  Or maybe I'm just crazy.

spastic_colon's picture

of course it is....on days like today the fed et. Al. just buys AAPL, BAC, C, and AMZN which all represent the largest weightings (by shares) in the S&P 500

BLOTTO's picture

Spending BILLIONS on defense when the enemy is within...as every single nation on this planet has been inflitrated by 'them.'




I feel like crying, have a nice day.

SheepDog-One's picture

I don't believe in any 'satan' nor any other characters from old books....they're just crooks in a big club, and you ain't in it.

BLOTTO's picture

I respect your opinion SD1...i understand the feeling.


I just think the 'big club' is a lot more darker, sinister and occult like, then you.

Plus, it doesnt really matter whether you or I don't believe it - 'the big powerful crooks' do believe it.

How do i know? - the evidence is all around...some since ancient times.


And i dont care to be in the big club as much as i want to be in the 'good club.' Its the winning side...you cant lose.

Making money and getting rich is so fuckin useless in the grand scheme of the Universe...other civilizations in some distant galaxy if they could speak - they wouldnt...they would just laugh or maybe even cry at our situation.

SheepDog-One's picture

There's nothing there in an 'occult world'....we're just 10 billion species hurtling thru space on a rock and 1 of these species has some who live for free off the slavery of all the rest. And that's just humanity bottom line.

newengland's picture


No offense intended toward your many good comments, but on this point, I do believe you are wrong.

I would rather live on my feet than die on my knees. Any threat to my child makes my adversary dead.

One child is every child. I will not give into the Trilateral Commission, and its hideous plan for a one world government of technocrats,  paid pets in academia and big business; the shills.

PKF's picture

Isn't there some asteroid or comet barreling toward Earth?  Now that could stop this Evil.  The Reset Button would be hit.  And the Rich Club Members would have to eat their money for breakfast.

I feel like crying sometimes as well.

newengland's picture

We shall overcome. Remember this when faced with Nazionists, the Vatican and the Monarchy.

By our will, it shall be done.

are we there yet's picture

Even if you do not believe in Obama, Obama believes in you. May the blessings of Obama be upon you.  ....  /sarc and irony off

freet0pian's picture

There's no "God" or "Satan", that's only for feeble minds.

SMG's picture

Perhaps.  But there is Good and there is Evil, and right now Evil is in charge.

freet0pian's picture

Yeah, most of us non-sociopaths are good. Sadly most don't spot the sociopaths.

BringOnTheAsteroid's picture

If humans didn't exist would there be good and evil in the world? No. Good, evil, satan, god, witches, ghosts, ghouls, spirits are a fabrication of the human mind. Let's just call it teething problems as our species grapples with it's infancy. A child eventually learns not to be scared of monsters and the dark. Adults, collectively, will eventually learn to not fear imaginery men in the sky.

SMG's picture

So would the world not be better off if there were less of the following:

We are not gods, we are not all knowing.  Perhaps there is more to our existence than we know.

BLOTTO's picture

Hey, if you're a dying chimpanzee...thats good for you.


I, for one, have an eternal soul.

My brain is faster then any computer on the planet...no amount of evolution/time can get my brain from a monkey's brain - to this level....not even an eternity.


Darwin Dogma...go eat a banana

freet0pian's picture

Hey! I like bananas. And for dogmas, I try to avoid them, it's better for your health. I don't know to what extent you believe in "God" but it's better to go to a doctor than pray an illness away.


And regarding the soul, how would one detect it? Has anyone done this? If you can't detect it is there any reason to believe there is one?


Inquiring minds want to know oh eternal one.

BringOnTheAsteroid's picture

How do you know? Is your soul conscious after death? If it's not your bicycle may as well have a soul as well. Darwinism, evolution is fact, undeniable, indefatigable fact. The evolution from the most basic life form to the most complex can be traced through the molecules of DNA itself, the more advanced organism building on genetic foundation of the predecessor. Just as humans decried a non-flat Earth for centuries, then decried a sun centric solar system for centuries and so on and so on, the mind is eventually liberated from it's beliefs through rigorous scientific research.

Promethus's picture

"Darwinism, evolution is fact, undeniable, indefatigable fact."

Wrong Asteroid boy! It's call the THEORY of Evolution not the LAW of Evolution.

BringOnTheAsteroid's picture

Don't fight it Promethus.

All those that fought the principle of a non-flat earth were wrong.

All those that fought the principle of a sun centred solar system were wrong.

All those that fought the principle of a 4 billion old earth were wrong.

All those that fought the principle < insert anymone of countless examples > were wrong.

Scientists are not immune to above treatment either. How many scientists fight any change to their currently held belief only to be forced to reliquinsh them on the back of UNDENIABLE EVIDENCE. It's a beautiful system and crushes human ego into the dirt where it belongs.

Your above reply, even so short, is laced with emotion and therein lies then problem. We must only view and examine the world with an analytical and OBJECTIVE view point because emotions are simply a hindrance to understanding the world.

BringOnTheAsteroid's picture

If it's the THEORY of evolution by natural selection then is it a THEORY of the existence of god, is it a THEORY jesus was the son of god, is it theory jesus was born of a virgin. NOOOOOOO, that doesn't apply to belief about god does it. Belief in god is a personally held belief/view so this is fact isn't it? I hate to say it but the catholic church has accepted evolution by natural selection. 2 million catholics, majority rules, they must be right.  

Can't have it both ways Promethus. You've got to grow up and face the reality that it is a human perogative to be wrong, about nearly everything, except for those fragments of reality that can be tested by scientific method, over and over again, in different places by different people and still come up with the same result. That is all that will work. More so because the majority of people are dominant in their emotional thinking over their logical thinking. Don't get me wrong, emotional thinking is great for writing poetry, music, literature, creating art, paintings and sculpture. As far as figuring out the place in which we find ourselves conscious emotional thinking is useless. The more theoligians argue with scientists the dumber they seem. They often resort to using scientific concepts to argue against science. Like, "Well, what created the big bang, you can't get something from nothing, it must be god". Since when did religion know anything about the big bang until science offered this up as a theory.

This is a lesson. Fight it first if you will but like billions of humans that have gone before you and been categorically wrong in their views/beliefs the same will apply to you and me. The only thing that uncovers these views/beliefs as wrong is science. You cannot stop it, scientific method will win out over religious doctrine.

freet0pian's picture

And for the yanks out there no I'm not a socialist, you can stop the down arrows.

WillyGroper's picture

While all of us here are rightly concerned with preservation of our hard earned money, in the grand scheme of things, Maslow's hierarchy will take priority.

One has to look no further than the laws being passed, namely the "Monsanto Protection Act" that Obliar just signed into law. Now 2-4-D is acceptable as Round-up has produced super resistant weeds.

We are human guinea pigs. Useless eater lab rats to these people, if you could call them people.

All here have connected the dots, excluding the trolls & shills.

Financial terrorism & blatant theft

Every branch of gubbmint captured

Bill Gates - Sterilization Vaccines

Fema Camps with their comfy coffins

Agenda 21

Militarization of Police

False Flags

Training exercises in major cities

Male fertility in decline

Zombiefied populace both young & old by pharma

80-90% of our bees are gone, at least China has the population to hand pollinate as they've done for a while now. 

Field sparrows, bobwhites & chickadees ALL 60-83% decline

No break in the chemtrail spraying, even under severe weather & tornado watches


There's no amount of gold or guns that's going secure clean food & water. Even if you're able to get your hands on conventional food, there's no guarantee that there's been no cross-pollination. 

The doomsday seed vault isn't for the peeps.

Get a gander at this. Should you read the full article, check out the imbedded links, the amount of Atrazine in our water is beyond scary, see the legend. You'll also find the criminalization of non-GMO seed possession. 

We are out moneyed & gunned. No where to run to baby, no where to hide.


What a circle jerk clusterfuck.

Have a great day! ;0)



yogibear's picture

The Chinese PLA manufactures exact duplicate F22's and other equipment not long after the US releases them.

There are so many Chinese nationals working throughout the US defense industrtial companies.

China already knows how to counteract all of the US defenses.


Almost Solvent's picture

They better keep their billions fed (cheaply) or US will be the least of their problems.

Supernova Born's picture

Smithfield Farms pork sounds quite tasty to their billions.

Antifederalist's picture

Go David.  His book is worth the cost as well.  It is a surprisingly well researched history of how the US made the wrong choices in the last 100 years.  Lots of great historical detail and insights from a political insider with a libertarian mindset.

NoDebt's picture

That's all well and good, but please note ALL THESE GUYS ARE 'TOUGH GUYS' WHEN THEY'RE SAFELY ON THE OUTSIDE CRITICIZING THINGS.  Put David Stockman in as head of Treasury tomorrow and he'll be tumpeting the glory of QE-to-infinity by the next morning.

I don't give a damn what David Stockman thinks.  He's not saying anything that hasn't been said on ZH and discussed at greater depth than his book ever dreamed of.

He's still selling that book, by the way.

SheepDog-One's picture

Yea they're all so full of shit....'FED was 'honest' with Volker'? Bullshit, and he knows it. Enjoy the billions you absconded with Stockman, I wish there actually was a hell to see you in dirty motherfucker.

ejmoosa's picture

I'm a bit more than half way through Stockman's book.  I used to think Lincoln was one of the worst Presidents ever, with the way he trampled the Constitution.  But Nixon, with his antics as decribed by Stockman, along with the creation of the EPA, embracing the idea of deficit spending, and escalating the war on drugs, has him in a virtual dead heat.