The Keynesian Apotheosis Is Here; But Blame The Final Destruction Of Sound Money On The Bushes

Tyler Durden's picture

Submitted by David Stockman of Contra Corner blog,

The only thing that can be said about Janet Yellen’s simple-minded paint-by-the-numbers performance yesterday is that the Keynesian apotheosis is complete. American capitalism and all political life, too, is now ruled by a 12-member monetary politburo, which is essentially accountable to no one except its own misbegotten doctrine that prosperity flows from the end of a printing press.

To be sure, this non-sensical and historically disproven proposition gets all gussied up in neo-Keynesian Fed-speak about dual mandates, monetary support to aggregate demand, “slack” in labor markets and remaining shortfalls from potential GDP, among endless like and similar jargon. But it did not take long during yesterday’s presser to reveal that Yellen’s mind dwells completely in a circular puzzle palace.

For once she got a decent question or two, but answered by lapsing instantly into ritual incantation about the macro-cycle the Fed pretends to be superintending. Thus, when asked about the tepid rate of business investment in future productivity and growth, the answer was: Right, that’s why we need ZIRP for longer!  That is, until we can inflate the GDP tire by monetary accommodation, expect CapEx to run flat.

Heavens to Betsy Janet!  CapEx has been running flat for 14 years. The compound growth rate of real plant and equipment spending is less than 1% since 2000 and is still 5% below its 2007 interim peak. There is nothing remotely this dismal during any extended period in modern history.

Likewise, with the structural unemployment and labor force drop-out problem. This has been building for 14 years as documented by the fact that there are now 102 million persons in the working age population who do not have jobs compared to 75 million back in 2000 when the maestro was being hailed for his monetary policy genius.

And no, Janet, these 27 million did not move to a golf course community in Florida for a much deserved and pleasurable retirement. In fact, there are only 7 million more people on OASI retirement today than there were 14 years ago. So don’t dismiss the graph below as representing retirement as normal; its actually an indictment of the Fed’s manic money printing during the interim.

The monetary politburo has been pushing on an employment string for more than a decade, but this is not a cyclical problem. We have a debt-saturated failing economy that is not generating genuine growth, jobs or earned household incomes. Yet the Cool-Aid drinkers in the Eccles Building seem to think that a vast population (at least 30-40 million) that has moved onto food stamps and disability, or into mom and dad’s basement, or onto the student loan bonanza at on-line colleges, or on to the streets is just waiting for “lower for longer” to work it magic.

In fact, Yellen’s lame answer to the chart below was “Its conceivable there has been some permanent damage”.  Indeed.

Never mind. Yellen has a hockey stick embodied in the Fed’s DSGE model that always predicts a return to the full employment GDP path 2-5 years down the road. And by the internal logic of this misbegotten model—which is only a vast set of discredited regression equations and data that embody the Neo-Keynesian world view—-all economic performance problems cure themselves after the Fed has gotten “aggregate demand” re-aligned with its theoretical full employment path. Its one-decision economic levitation writ large.

Except….except… it should be damn obvious after five years of what can only be described relative to all prior history as lunatic monetary expansion—that this mysterious Keynesian ether called “aggregate demand” is not realigning with the postulated full employment path of GDP embedded in the DSGE. That much is blatantly evident in yesterday’s markdown of its estimates for 2014 GDP to take account of the -2% hole in Q1 results.

So as recently as early 2012, the Fed was confidently predicting “escape velocity” would be in full force by 2014, with GDP growth accelerating to 4% and thereby representing the catch-up phase of the macro-cycle. That “above trend” performance, in turn, would bring the nirvana of full employment a few more years down the road. Until then, “unusually accommodative “policy would be warranted.

Well, here we are in 2014 and there is no escape velocity in sight despite roughly $1.8 trillion of bond-buying in the interim, and the GDP forecast is drastically marked down to the 2.1-2.3% range.  Was there any detailed explanation for this stunning repudiation of everything the Fed has predicted for meeting after meeting. Nope! Nothing but the passing of winter, which does come every year, even if this one was somewhat harsher than normal.

But if ZIRP and QE were working, the lost GDP due to snow and cold should be quickly recovered during the balance of 2014. Why did the Fed not upgrade its remainder of the year forecast to 6.0%/quarter to get back to its 4% annualized escape velocity?  After all, virtually every one of the barriers that it blamed for the tepid recovery to date back in 2012 have now been overcome.

Back then it blamed fiscal drag.  But the Obama White House has noisily pointed out that in the interim we’ve had the largest reduction in the Federal deficit ever recorded—-even if it still has clocked in at nearly $500 trillion so far this year. So on the fiscal drag front, we’re there. Check!

Then there was the household deleveraging matter. But we’re there, too. Aggregate household debt finally blipped up in the first quarter after years of decline. Even credit card debt recently got a boost.  So, check, there too.

And what about global growth and the US export recovery?  That one has to be an automatic, postulated…. check, check. Every major central bank in the world still has its shoulder to the wheel of extraordinary accommodation. The BOJ is literally printing itself silly and will soon have a balance sheet of nearly 50% of GDP; the ECB is diving into the monetary nether world of negative deposit rates and back-door money-printing on a vast scale; and the red capitalist overlords in China can’t keep their hands off the RMB print button, even as they fret about the monumental Ponzi rising up all about them. So, yes, check, global growth has to happen.

And never mind the graph below which documents the preposterous deflation of the Fed’s 2014 forecast. You heard Yellen’s words yesterday. No problem!  Escape velocity has been rescheduled for 2015 and 2016. Check.



But here’s the point. If you are not wearing Keynesian blinders, it is self-evident that the $3.5 trillion expansion of the Fed’s balance sheet since September 2008 has all gone into the reflation of financial assets—a staggering gift to speculators and the small portion of households (10%) which own more than 80% of all financial assets. The reason for this diversion of the Fed’s vaunted “extraordinary accommodation” into windfall gifts to the 1% is that the historic “credit expansion channel” of monetary policy transmission is broken and done.

We are at “peak debt” folks. Household debt normally amounted to about 75% of wage and salary income back in the prosperous days before we launched into monetary central planning in 1971.  But after a 40 year parabolic ratchet to a peak of 220% in 2007, the one time credit fueled boost to household consumption is done. Indeed, the household debt ratio is still at a precarious 180% of GDP, and that’s only on average and therefore only part of the story.

Household Leverage Ratio - Click to enlarge

Household Leverage Ratio – Click to enlarge

Take out the top 10% of households with their vastly, if temporarily, inflated financial asset troves, and the bottom 30% who live hand to mouth at Wal-Marts and can’t carry any debt except pay-day loans, and it is obvious that there has been no material deleveraging. The middle class core of main street households are still laboring under a crushing load of debt—so zero percent interest rates until the cows come home will not enable or induce them to borrow.

And on the business side of the peak debt story, the picture is now even worse. Non-financial business debt has grown from $11 trillion on the eve of the financial crisis to nearly $14 trillion at present. But this staggering gain of $3 trillion or 25% has not gone into incremental investment in plant and equipment—that is, the building blocks of future productivity and sustainable economic growth. Instead, and just like during the prior Greenspan housing bubble, it has gone into financial engineering and rank speculation.

Tower of Business Debt - Click to enlarge

Tower of Business Debt – Click to enlarge

That is the explanation for record stock buybacks and the resurgence of mindless M&A deals (globally we just had the first $1 trillion M&A quarter since Q3 2007). These deals are overwhelmingly nothing more than a vast expansion of cheap leverage being used to liquidate target company stock, and which are so lacking in business logic that they will surely be unwound to the tune of vast “one-time” write-offs in the years ahead.

What is at record 2007 peak levels is not loans to main street businesses—most of which do not need funding or are not credit worthy. Instead, the recently heralded growth in bank lending has gone into leveraged buyouts and dividend recaps.

Indeed, credit is flowing every which-way into the Wall Street casino including sub-prime auto junk funds, double-leveraged CLOs, massive junk bond issuance at the lowest rates and spreads ever and “cov lite” loan issuance at rates even higher than 2007. But according to Yellen, “our models” show no indications of bubbles or over-valuation.

Yes, with the Russell 2000 at 85X reported earnings there is no over-valuation. Likewise, S&P 500 reported LTM earnings in Q1 clocked in a $105 per share, meaning the broad market was trading at 18.7X as she spoke. Incidentally, that multiple of the kind of GAAP earnings that they put you in jail for lying about is higher than 86% of the monthly observations in in modern history, and actually higher than 95% if you take out the years of Greenspan’s lunatic dot-com bubble.

Worse still, those $105 of earnings have crept up by only 5% annually since later 2011— during a period in which the stock index has risen by nearly 60%. Yet the current $105 earnings number is also bloated with unsustainable interest subsidies on upwards of $3 trillion of S&P company debt owing to the Fed’s financial repression which is eventually to end; is festooned with tax rate gimmickry that is finally stimulating a Washington revulsion; and is flattered with earnings translation gains that are going to reverse as the ECB puts the kibosh on the Euro.

Yet in the face of all this, her is the Yellen money quote:

“I don’t see a broad based increase in leverage, rapid increase in credit growth or maturity transformation.”

OK, we are nearly at record levels of margin debt against GDP and the former is callable, meaning that it has an effective duration of zero. But no maturity transformation there. Likewise, the US treasury has massively pushed its outstandings to the front end of the curve, yet there is nothing unusual going on there, either.  And what does Yellen suppose the massive explosion of ETFs and options trading during the Bernanke-Yellen bubble inflation is? Well, its all callable money with a half-life of zero when the crunch comes.

So no bubbles—just endless Keynesian babble. On the question of resurgent inflation asked by court jester Steve Leisman, for example, Yellen dismissed his observation that the CPI is already running above target by noting “the data we’re seeing is noisy”.

But that was only half the noise. Later Yellen noted that the Fed’s favorite non-price index, the PCE deflator, is still running well below target and that the Fed would not be satisfied until it hit 2% and stayed there.  Well, let’s see. For the last 17 years the PCE deflator has run a full 0.5% behind the CPI, which medicated as it is, does measuring some of the gain in living costs. So apparently, the long run CPI target is 2.5%, and even that’s not the whole story.

As the table below shows, the cost of things that people really buy has run well ahead of the CPI for the last 14 years. The monetary politburo apparently means, therefore, that it will keep printing and accommodating— even if the actual cost of living on main street is rising by 4-5% annually. Or to put it in the sage context of Paul Volcker’s comment about the arbitrary 2% inflation target in the first place, the Fed’s implicit inflation target implies that a worker’s savings will be cut by 70% over the course of a 30-year working lifetime. But then why should people save, anyway. The Fed has now signaled for most of this century that it intends to punish any citizen who does not spend all he gets and all she can borrow, too.

What Inflation Shortfall?

What Inflation Shortfall?

But then we get to the rotten heart of the matter, and the everlasting blame that should be assigned to the two Bush presidencies—-12 years of alleged “conservative” economic governance that actually implanted the Keynesian curse now upon us. Namely, the “dot plot”, and folks its just that. Namely, its an emerging bit of pure intellectual gibberish with respect to the so-called “neutral federal funds” rate that if adhered to would keep Wall Street speculators in zero-cost trading stakes for time immemorial.

For several years now there was a constant refrain from the Eccles Building that as soon as its dual mandate targets were securely in sight or hand, that the funds rate would be lifted back to its alleged neutral level of 4%–representing the math of 2% inflation plus the 2% real rate that was decreed 20 years ago. The author of that thoroughly destructive rule was a crypto-Keynesian economist by the name of John Taylor, who had managed to implant himself in high economic positions at the Treasury and CEA during the George H.W. Bush Administration.

Needless to say, the so-called Taylor Rule is anti-capitalist to its core because it denies the free market the essential task of price discovery on the single most important price there is—namely, the price of carry in the money markets and therefore the price of leveraged speculation. After three bubbles in two decades that should be obvious enough.

But no matter. The Taylor Rule is the foundation of our current regime of Keynesian central banking. As Jim Grant has so succinctly explained it, it establishes the rule of price administration by the state in place of price discovery by the market.  Yet once that line of demarcation was crossed early in the Greenspan era it was Katie-bar-the door. With government policy apparatchiks in charge of pricing money, debt and indirectly all risk assets which are inherently valued based in cap rates and yield curves established by the central bank, there would always be a vast potential for mission creep and re-definition of the Rule.

Indeed, Professor Taylor, who was himself a life-long policy apparatchik and had hung around the White House, Treasury and think tanks, was the very archetype of the power-hungry bureaucrats who subsequently took his Rule and ran with it. Apparently, the good professor was trying to solve Milton Friedman’s quantity rule, which had become an laughing-stock during the 1980s, with his own selfie called the Taylor Rule.

But the Taylor Rule is much worse and far more statist than Friedman’s. It’s just flat-out price administration, and it’s content was not all the scientific razz-matazz it was cracked up to be. The proceeding decades of history which he claimed to have based his Rule on were not a timeless clock of business cycles that could be weighed, averaged and regressed upon a mean. Instead, Taylor’s test period was a historically unique and aberrant trip into a regime of bad money that incepted in the mid-1960s and was interrupted only briefly by the Volcker interregnum—a period in which an inflation fevered economy was largely cured, but under conditions in which the Taylor Rule would have been a menacing excuse for accommodation.

In short, after the travesty of the Great Inflation during the 1970s and the free ride given to nearly $2 trillion of deficits during the Reagan-Bush period we desperately needed to get back to sound money based on an external anchor like gold—-a standard which would discipline the monetary politburo, not enable it to run the printing press at will. As is now becoming evident as the Taylor Rule prepares to be gutted by the current inhabitants of the Eccles Building, the good professor is second only to Alan Greenspan in the gallery of villains who paved the way toward the present Keynesian apotheosis—which is to say, destruction of free market capitalism as we have known it.

For what is now going down is a accelerating crawl toward a re-tailored funds neutrality rule at 2%.  It is already being promoted as the new abnormal by Wall Street gamblers, and especially the larcenous front-runners who operate PIMCO. The reasoning is that with 2% inflation given by policy writ, the “real” neutral rate should remain at zero indefinitely, and here’s the reason why: Namely, that the US economy is too weak to hold-up the vastly inflated trillions of debt and equity that have been priced under a regime of zero-cost carry. Stated differently, we dare not risk a recession owing to interest rate normalization—least PIMCO and most of its hedge fund bretherns will be instantly put out of business as the Wall Street house of cards craters.

Already, the dot-plot is heading toward 2%, and the theory is that it would stay there will beyond the 2017-2018 milestone where DSGE model says we will reach the Fed’s targets. Could anyone have imagined zero or negative real interest rates for a decade running even as late of 1990 when some folk memory of sound traditions still existed?

In fact, they were quashed once and for all by the Bush White Houses.  Another huge villain in the piece is Michael Boskin, the Bush 1.0 CEA head who lead the commission that attempted to define inflation out of existence, and thereby remove the last folk restraint on the Fed’s resort to the printing press. All of the mechanisms which drastically dilute the CPI—hedonic adjustments, geometric means, frequent least-cost product substitution are all on his plate–even if Boskin’s real purpose was to cheat old people out of their full COLA adjustment.

But obviously what has happened, instead, is that the American people have been jipped out of sound money and the value of their savings. Good going, Michael.

And then we get to the depredations of Bush 2.0, but only one needs a reminder. Bernanke’s published work, as thin and derivative as it is, was there in plain sight when he was drafted for the Fed by Karl Rove and the Bush 2.0  gang of political hacks.

They could not read his comments about the Fed’s printing press?  They could not detect the obvious Keynesian bias of the demand-side model that suffused his writings. For all their Reagan worship, they did not know that the Bernanke view of the world was something that the Gipper actually understood, and thoroughly detested. They did not recall that even Ronald Reagan understood that an activist Fed would eventually lead to the evisceration of free market capitalism?

The worst thing is that this out-and-out Keynesian in their midst got two more promotions–to the CEA in 2005 and to head the Fed in 2006. And the last one was fatal. It placed this phony scholar of the 1930s—-the professor who had won his PhD from Stanley Fischer by essentially xeroxing Milton Friedman’s drastically erroneous claim that the Fed’s failure to go on a bond buying spree during 1930-1932 was the cause of the Great Depression—in the catbirds seat when the second Greenspan Bubble came crashing down in September 2008.

Yet there was never any Great Depression 2.0 in sight, as I have documented thoroughly in my book, The Great Deformation: The Corruption of Capitalism In America.

As we now embark upon the apotheosis of Keynesianism it can be well and truly said that the conservative party in America brought this baleful condition to its present estate. First, with Nixon’s abominations at Camp David in August 1971; and then with the horrid economic legacy of the Bushes who brought the Keynesian destroyers to the killing rooms of the Eccles Building.

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darteaus's picture

World Wide Hyperinflation.

Bullish: Food, fuel, medicine, PMs, firearms and ammo.  Also, the MOST expensive luxeries.

Bearish: Trinkets (antiques, etc.), blue-collar anything (jet skis, 'bagos, etc.)



El Vaquero's picture

Bullish on useful antiques.  I'm now shaving with a straight razor manufactured in 1860.  It came with the original box that had the $2.50 original price on it.  It was a birthday present, but it went for $100, which is cheaper than a decent straight razor brand new.  If cartridge razors become unaffordable, all that I need is some soap, which I can theoretically make,  a strop and a barber's hone, which I have, and I can still shave.  The next antique I want to find is a working corn sheller, even if it does need a little restoration. 

NoDebt's picture

You have a barbers hone?  Damn.  Good for you, man.  You're past me on that one.

If you've got a good straight, you really don't need much more than a leather strop to keep it "razor sharp".  Especially if it's just you using it.  A little jeweler's rouge on the strop and you'll be ready to go.  Best part is, IT DOES NOT REMOVE METAL from the razor like a hone does.  It straightens and polishes the edge that's already there.  Infinitely reusable, basically.

Now, if you're shaving 30 people a day.... OK, maybe you need to stone-hone that thing from time to time.  But just the lether strop can do a stunningly good job keeping an edge on it under occasional use.


Pinto Currency's picture


So well written Mr. Stockman.

One note.  Volcker is no hero.

When we consider that Paul Volcker, who was David Rockefeller's personal assistant, pushed for the US default on gold redemption for dollars, we can see that the die was cast from that day of gold removal.  The USD was to be incinerated.

Everything else since then has been gobble-dee-gook to justify spinning the printing presses while the US economy and currency was systematically destroyed.

What was the agenda of David Rockefefeller and the CFR? 

See the Congressional Reece Committee from 1955 and also this recent summary of the history of the CFR:

Mission Accomplished takes on new meaning.

knukles's picture

Apotheosis ... How, Elegant

Four chan's picture

the system called federal reserve is working perfectly.


capture all assets, enslave the people to unpayable debt.

only the principal is created, never the interest, a system designed by the rothschilds to enslave all that adopt it.

new game's picture

KUDOS TO ds! print this out and now you can quite this zh adiction! go plan accordingly. don't waste any mental energy

explaing this to anyone-THEY ARE TOO STUPID TO UNDERSTAND! or they don't care until it is too late, and then they still won't understand. and at that point in time it will be survival of the fitist and lucky fucks...

location of you and your loved ones will be critical to the darwinian priciples of propagation. may the dumb fucks perish as should be.

RaceToTheBottom's picture

The only thing missing was a recognition of Greenspams role.

You could not have had a Bernank without the Greenspam paving the way.

El Vaquero's picture


You have a barbers hone?  Damn.  Good for you, man.  You're past me on that one.

If you've got a good straight, you really don't need much more than a leather strop to keep it "razor sharp".  Especially if it's just you using it.  A little jeweler's rouge on the strop and you'll be ready to go.  Best part is, IT DOES NOT REMOVE METAL from the razor like a hone does.  It straightens and polishes the edge that's already there.  Infinitely reusable, basically.

Now, if you're shaving 30 people a day.... OK, maybe you need to stone-hone that thing from time to time.  But just the lether strop can do a stunningly good job keeping an edge on it under occasional use.

You have not met my beard.  The surest way to get a barber to hate me is to ask for a shave if they use shavettes.  I have been told by barbers that they hate my facial hair, because they will have to use 3 blades for a shavette on me, when they'll normally get 2-3 full shaves out of one blade.  I need the hone.  Shaving every day, an edge will last me 2-3 months.  It would probably last most people 1-3 years. 

RafterManFMJ's picture

If TSHTF you'd be foolish to shave. One nick and you could die of infection as medical care would be sporadic.

Short razors and long beards.

BigJim's picture

Just dab a bit of Poitín on that sucker while it's still fresh.

Long copper tubing and charcoal.

El Vaquero's picture

Never had a problem with nicks getting infected and I have never needed medical attention from shaving.  My facial skin does better with not getting infections when I do shave, in fact.  It makes it easier to get my face clean.

LetThemEatRand's picture

Thanks for that, Stockman.  But the Fed pre-existed the Bushes.

Dublinmick's picture

I blame it on George Washington and the American I.Q.

zhandax's picture

George was a federalist, but I think you can chalk this one up 99% to the American lack of common sense.  They have the IQ.  They have been treated to 50 years of gubmint propaganda not to employ it.

texas economist's picture

Notice that stimulus always requires removing one or more free market attributes. Only Ivy league economists can see the logic in that. Keynesian solutions require that economic decisions be made. How is that going to be successful when implemented through governments? Governments by definition can only make political decisions.

Oldwood's picture

I'm sure massive government spending and resultant debt have nothing to do with it.

ebworthen's picture

Thank you, thank you, thank you David Stockman for SPELLING IT OUT.

These fuckers have DESTROYED the Republic and decimated decades of belief and trust.

Yes, this is Great Depression 2.0, but worse, it is the END of America, of the U.S.A., as most of us have known it, lived it, and dreamed what it could mean for us and our progeny.

GONE is the only word to describe it.  Add "abandoned" or "sold" or "prostituted out to the highest bidder" or what have you; but it is GONE.

Thanks for the new words: 

Apotheosis - the perfect form or example of something, the highest or best part of something

Interregnum -  the time during which a throne is vacant between two successive reigns or regimes, a period during which the normal functions of government or control are suspended, a lapse or pause in a continuous serie.

Stockman rocks it again.

Please, let's do a "Clockwork Orange" on all living FED members and make them read this.

TBT or not TBT's picture

But there is someone in charge, not enforcing law, making up law, undermining rule of law, aiding and comforting enemies, etc.   Sounds pretty "regnum" to me.  No "inter" about about it.   We have tyranny writ large, with this tyrannical centrally planned financial tyranny  being a key enabler of it.   How, pray tell, could central governments manufacture consent to the degree they have, without running the printing press and manipulating the rates they must borrow at to keep the votes paid for?   How far can the inactivity rate go up, the debt go up, before it breaks down and, I guess some kind of wartime-like ubiquitous control of every moving thing must be imposed, by force, and through financial controls.    The mark of the beast, pretty much?

bilbert's picture


+2 for interregnum, apotheosis and -1 for "jipped" (sic)

Long article, however...

kchrisc's picture

Bad news is that there are no breaks, the good news is that there is a brickwall ahead.

darteaus's picture

Why don't these guys EVUH point out the scam when they are in power and able to do something?

'Cause they're getting theirs!

When out off power/off the take: "Im shocked, SHOCKED..."

Right, it's time for the blame deflection, credibility recovery phase.

NoDebt's picture

They're all tough guys when they're outside and have no power to affect anything.  Put 'em in and they'll be singin' with the choir in no time.

Reference:  Harvey Pitt, former head of the SEC (under whose watch this end-game melt-down hapened).  Now that he's out, he's all for prosecuting people.  Oh, he's tough, man.  Real tough.  While in, he never brought a charge against anybody (and sang the praises of risk-spreading financialization).  Worthless pile of crap.  And emblematic of all of them.

RaceToTheBottom's picture

Didn't Stockman resign?  Pitt did nothing but line the pockets of WS Banksters.  He is, was, and always will be evil.

Sorry_about_Dresden's picture

Can David Stockman write a piece on the Bank of International Settlement and that banks (state's) part in this disaster?

Yen Cross's picture

   Stockman vs Greenspan   (bitch slaping championship)

  Tickets are limited! $250 corners & $1000-$1250 rows 1-5 available.

    Bring your own colostomy bag/

     Date : GMT-8  " Old Folks"time. On the half hour December 29th 2014.

   If I named an actual hour you clowns would probably show up!

MrBoompi's picture

I've been trying to tell you for years the Fed doesn't care about employment or inflation. All they care about is what they were created to do. Bail out the financial elites who own the major financial institutions and maintain their monopoly on the money supply and interest rates. All of the related costs are transferred to the taxpayers. I don't understand how anyone could still be shocked or surprised by what these people say.

kchrisc's picture

All they care about is theft--Maintain prior thefts and orchestrate more theft.


"My guillotine only cares about heads."

adr's picture

The middle class is Jesus at the Last Supper, the Fed represents Judas who has been handed the buy button for the QQQ by the moneychangers Jesus threw out of the temple.

The tribe has achieved the dream of milenia to finally control the world. 

The masses are quiet, in the apathy phase. However they are transitioning to resentment, after resentment is anger. Once that line is crossed, the end of the moneychangers is near. Hopefully it will happen soon. I want to see it.

verum quod lies's picture

Bingo; and good allegory. But be careful, as many are still in denial and/or full out CYA mode on the tribe part of things. What do Greenspan, Bernanke, and Yellen have in common? Must be random ... sarc off.

Miggy's picture

Plus 1.


John 3:16

Bunga Bunga's picture

There is only one solution: P R I N T !

kchrisc's picture

Fat lady just started her second aria.

Yen Cross's picture

Took me a second. lulz

  I can't wait to see that Higante guillottine in your back yard!

Clueless1's picture

Luke Rodowski interviews German 'End the Fed' activists.

falak pema's picture

And what does the Oligarchical morph of American exceptionalism into financialzed despotism have to do with Keynes? 

Why not attach it to Milton Friedman. At least Maggie and Ronnie loved him. and they were the catholic kings of deregulation and Oligarchy global rule! 

And as Stockman correctly points out the "abomination" began in 1971...

kchrisc's picture

The "abomination" began in 1913. December 23, 1913 to be exact.

Oldwood's picture

So this is where we are at now: Republicans are the "conservative party? Just because they lie and say they are conservative, he is telling us Nixon and both Bushes are conservative too? We haven't seen a conservative even close to the white house since Goldwater.

"As we now embark upon the apotheosis of Keynesianism it can be well and truly said that the conservative party in America brought this baleful condition to its present estate. First, with Nixon’s abominations at Camp David in August 1971; and then with the horrid economic legacy of the Bushes who brought the Keynesian destroyers to the killing rooms of the Eccles Building."



Last of the Middle Class's picture

The trouble with keynesian economics is that it is a one way street. You cannot unprint money. In fact where we're at now you cannot even turn the spigot off without dire consequences. Now the great lie is that there is a 2% inflation goal. Well yes, the print goal is that while the real number is far greater, everyone knows this. Every dollar printed drives inflation, economics 101. Now even with the incredibly low velocity of money we're seeing real estate bubble again. This is the problem with government out of control, next they want professional basketball teams sold because the owner is racist, and delve into other parts of the government to change trademarks because "redskins" is insensitive. The irony of this nonsense to anyone with even the most basic critical thinking skills is just too enormous to believe. How about we swing some bankers for printing trillions of dollars to cover their asses and completely subvert our economic recovery. Wouldn't that really make more sense in the scheme of things really done to hurt our nation as a whole? That's the problem when you have a fudgepacker in chief. Common sense is completely gone and you have this tremendous effort to blame something, anything that has nothing to do with maintaining the status quo you have created that is so devious. And of course now we're going green due to unreapeatable scientific studies. Down the cosmic bunny hole we go. (Pun intended)

W.M. Worry's picture

"The trouble with keynesian economics is that it is a one way street. You cannot unprint money."

You can indeed unprint money. It's called taxation.

esum's picture

soon there will be dancing in the streets 

tradewithdave's picture

If German activists who want to end the Fed = Nazi


Prescott Bush = Nazi

Then what else remains? Sounds like a planned metaphorical demolition of 33 Liberty. I guess the next thing we will be hearing about is KKR investing in KKRypto currencies via First Data.

yogibear's picture

MSNBC is already blaming the Bush(s) for more than doubling the deficit. Once the libtards blame Bush and convince their constituents
Bush caused it their free to continue spending wildly.

A libtard told me this weekend it was Bush's fault because he tripled the spending. This gives Obama a reason to spend even more? The Republicrats are responsible as well but there was no reason for Obama to take spending to these levels.

Obama has turned the country into Chicago. Spending into bankruptcy.

Vin's picture

This article is just more focus-diverting crap.  Stockman refuses to even mention the fact that all the politics and policies that he discusses are simply part of the plan; the plan to bring down America.  Blame this guys or that one, the point is, this plan was begun over 100 years ago and has worked beautfully, crushing the middle class between inflation (currency devaluation) and debt.

Keep focused, it's the FED.  It's the banking families that run the world's central banks.  The entire concept of a private central bank is disgusting and unconstitutional.  We've worked our entire lives for little pieces of paper that are like monopoly money.  Acknowledge it, accept it, and return to the contraints of the Constitution.

all-priced-in's picture

My view of most politicians is they don't have a plan much past what they will have for lunch TODAY.

To think some political force has been planning things worldwide - with a time line that extends for decades just doesn't seem plausible.

BTW I have a plan -  having lunch at Johnny Tamale Cantina - beef fajita, rice & borracho beans. /s/





RabbitOne's picture

I took an advanced history class as my only elective in my Masters Degree program. It was far more difficult than any of us in the classroom could imagine. Our instructor was an older man beyond retirement age who was passionate about History. He had constant verbal challenges in classroom lectures and essay tests that challenged the mind.

In the last test before the final he challenged us all with a one question test that asked “…from what you have learned in this class state, in simple terms, the rise and fall of a nation as it progresses from its inception through its demise…”  When the results came in he stated ‘…none of you answered in the simple terms I asked for … your answers were far too complex.  He then stated an answer I never forgot:

 “All nations are much simpler to define because they are all based on human nature. In the beginning their citizens start out in fetters (chains) dreaming of freedom, through enormous struggles they have faith they will gain this freedom, then at their peak they attain the freedom they so desperately wanted, then all nations abuse their freedom believing it will last forever and as you guessed this nation returns to fetters for having abused its freedom. There have been no exceptions to this cycle throughout history. I will finish by saying America today is abusing its freedom and will some day in the near future go back to fetters…”

 A few years later, when my instructor’s dead notice appeared in my local paper with many accolades, I learned my instructor had taught some of the greatest minds in America. He had only come to my school to be close to his family in his last years.

So ever since those days with each major event that rocks America my instructor’s words burn in my ears and I think to myself “…back into fetters…”