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David Stockman Warns "It's One Of The Scariest Moments In History"
"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."
Key Excerpts from the detailed interview:
David Stockman: People don't want to hear the reality and the truth that we're facing. But I think there is an enormous appetite out in the country to get a different perspective than what you have from the media day in and day out, so I say the fed is out of control. Its balance sheet is exploded. It's printing money like never before.
Zero interest rates for 70 months have basically destroyed the pricing function in the financial markets. I said that as a result of this, Wall Street has become a huge casino which basically rewards gamblers, but it is not functioning as a capital raising, capital allocating instrument, which really is what the financial markets should do in a free market system. I warned about the size of the federal debt. I'm an old budget director from the Reagan days. We had a trillion dollar national debt, a 3 trillion economy when I started. Today, it's 18 trillion. Eighteen fold gain in the last 35 years versus maybe a fourfold gain in the economy. So all of these trends are taking 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.
So people don't want to hear the warning. They don't want to hear the truth in the establishment, in Wall Street, in Washington, but I think out in the country they must.
* * *
David Stockman: Well it's obvious that Wall Street is addicted to cheap money and unlimited flow of new liquidity into the markets. Traders can then borrow money on an overnight basis for five basis points, which is nothing. Buy anything with a yield like a ten-year or five-year bond or speculate in stocks that they think might be going up or even get fancier and go into derivatives or commodity futures or whatever. And then capture the profit or the spread between the cheap money that the fed is putting into the overnight market and the yield or profit they're making on the asset, and they're leveraging way up.
You know, 90 percent, 95 percent in many cases. So obviously, the whole financial market is dependent on this, but it comes at a cost. It is destroying savers in America. If you worked a lifetime and saved $100,000.00, you're making $400.00 a year in interest from a lifetime of savings. I think there will be a revolt sooner or later of the American public against this disastrous crushing of the saver in order to essentially accommodate Wall Street's appetite for liquidity.
* * *
David Stockman: Well you know, the problem is the fed, I've described, is a rogue institution. It's operating beyond any of the legislative intent or statutory authority that's been given to them over the years. They have essentially become a national monetary planning agency that has decided they can drive the daily, weekly, monthly movement of the economy by manipulating interest rates and the yield curve by putting a put under the stock prices by essentially trying to drive the entire 18 trillion or 17 trillion US economy from Wall Street. That is fundamentally at variance with the requisites of a healthy capitalist economy. You need an honest financial market. Not a manipulated one.
You need price discovery by people that have their money at risk, not the central bank.
Harry Dent: Actually, it's a centrally planned economy, isn't it?
David Stockman: Right, exactly.
* * *
So David, do you think the republican congress can save us from this economic sundown that we've been discussing today?
David Stockman: Well I would like to think so, and they talk a good game, but unfortunately when push comes to shove, they're in the consensus with everyone else in the beltway in Washington and are unwilling to take on the hard issues. We are borrowing still $600 billion in the last year, six years after allegedly the great recession ended, and we are setting ourselves up for trillion dollar deficits again, the next time the economy stumbles or we have a recession or some other dislocation. The fact is the fed is not abolished the business cycle. The fed has not made the world completely safe from these kinds of dislocations. So therefore, we need to look at what's driving this huge deficit, and the answer is big entitlements and big defense spending, and the republicans are unwilling to take on the Pentagon. They want more, and they're afraid to take on Social Security and the entitlements because they believe that is going to be problematic politically.
So therefore, nothing is being done about the structure of this deficit problem, and we're just basically stumbling our way into another huge crisis in ballooning national debt.
* * *
David Stockman: Well, it's one of the scariest moments I think in our history, but also we need to recognize we're in uncharted waters. No central bank has ever printed this much money this long, kept interest rates at zero, fueled so much speculation. Not just here, but worldwide. Not just in the normal stocks and bonds, but the whole shale boom, for instance, in the United States was massively funded by cheap debt based on oil prices that weren't sustainable, and now that's all coming unwound. We have never had deficits of ten percent of GDP back to back, or even still four or five percent four or five years into a recovery.
We have a runaway budget where the population is getting older and older, 10,000 people are retiring every day. Nothing is being done about Social Security. It's a festering time bomb, and we're not sure how it will explode, but we know it isn't sustainable. We have a Wall Street that is more addicted to pure overnight gambling and trading and speculation for the ultra short run that is driven by robo traders, the so-called HFT money, like never before. It's unstable. That's why we see things happen like the overnight 40 percent gain with the Swiss Franc when the Swiss National Bank pulled the pay.
Forty percent overnight – not overnight, but in a couple of minutes or seconds when there were hundreds of billions of short positions in the Swiss Franc. All of these things have never existed simultaneously, not only in the United States, but worldwide. All the central banks are doing it. We're reaching the point where it's unsustainable, things are going to give and break, but the good thing is it's going to be more a disaster in the financial markets in my view, less some kind of Great Depression impact on Main Street. It will be difficult on Main Street, but Wall Street is in the gun sites of this disaster coming.
* * *
David Stockman: I agree. In the long run, we have to get off this debt addiction. We need to get back to sound finance both in government and households, but beginning between here and there is going to cause enormous pain for millions of households who have been herded into risky investments, junk bond funds, stock market funds, high flying biotech stocks and on and on because they were told it's the only place to be. If you put your money in a CD, you get no return. If you put your money in a safe bond, you get almost no return. Now when the big reset, as Harry calls it, happens, and the stock market drops by large magnitudes, 50 percent, more, those people who were herded into these risky investments late in life – Because remember, we have the baby boom, you know, heading towards their retirement homes, are going to be badly hurt at a time that they can't recover, and it will be a massive injustice that is being done by Washington and the fed to this current generation of middle class Americans. That will produce, in my view, a political reaction, a political revolt that will begin to say, "What's wrong here? Who believed that printing money out of thin air can make a society wealthier? Why did we do that? Who believed that we can actually create jobs and new economic output on Main Street simply by having the fed press a button and create another billion dollars?"
* * *
David Stockman: Yeah, I agree with that, and the point to remember is that massive money printing by central banks on a worldwide basis is inherently deflationary for two reasons. One, it fuels massive financial speculation. When we talk about speculation, we're talking about professional gamblers who borrow 95 cents and use that borrowed money that they pay practically nothing for to buy stocks or bonds or commodities or derivatives or biotech stocks and so forth as I indicated. All of that buying power is artificial. That is not coming from production today, real effort in the economy. That's coming from newly minted credit.
So it takes asset prices to unreasonable, unsustainable levels. They crash, and that creates a negative economic cycle. Secondly, massive money printing makes capital and debt too cheap to the real sector of the economy. So therefore, massive capital investments are made on the basis of cheap cost of capital, not on the basis of the likely return or sustainable return over time.
* * *
David Stockman: Yeah, a famous American economist once said anything that's unsustainable tends to stop. My argument is that we're at the stop point. The fed has been printing money like there's no tomorrow really for 25 years since Greenspan took over in 1987. They are now at the point where their balance sheet has become so bloated, so enormous that even the people running the fed are confused about what to do. They've painted themselves into a corner, and they're playing it by the day, and they're going to make a huge mistake. So the money printing thing is near an end.
Secondly, our political system has become totally non-functional. We have a lame duck president who can accomplish nothing, a congress that is totally paralyzed, meaning that before 2017 at the earliest, nothing will be done about our fiscal and entitlement explosion. Finally, the American people have believed falsely that all of this is going to work out. It's not going to. When they find out that the adults so called in Washington had no clue what they were doing, there is going to be a collapse of confidence, and that will flow into the system as well.
* * *
So it seems like this bubble bursting is inevitable. How much time do we have? Is it years, months? How will we know? Are there some clues we can look into to make sure that we're prepared?
David Stockman: There's really no magic numbers here, but it's remarkable that these central bank driven bubbles tend to peak after about six years. The dot com bubble started really in mid-1994 with the famous Netscape IPO. It crashed in March 2000, six years. The housing bubble roughly started in 2002. It totally crashed in 2008. Six years. The meltdown on Wall Street bottomed in March 2009. Add six years. 2015. I think we're at the end of this bubble simply based on the fact that they can't expand forever. They reach an asymptotic peak, and then confidence is lost, a catalyst occurs, a black swan appears, the selling begins, and there's nothing under this market. There is no safety net under this market.
* * *
Is there anything that can save us?
David Stockman: Yes, there are, and in the short run, that will be painful. There will be great dislocations, both in the financial markets and the real economy. But in the long run, that's a good thing. We have become so dependent on government, we have come to believe that the Federal Reserve drives the economy hour by hour, day by day. None of that is historically true. Real wealth, real prosperity comes from the sweat and from the enterprise and from the invention of people on Main Street, not the politicians on Wall Street who are on the central bank. So I think the big inflection point that we're facing is when the big crash comes, on the other side, maybe we can get back to the private enterprise system and the kind of family self-reliance and thrift and prudence that our prosperity was built on 40 years ago.
* * *
David Stockman: Well in The Great Deformation, I said, "We're heading towards a day of reckoning. This isn't sustainable." It's happening in real time, and in the updates, what I try to do is focus on the catalyst events, the catalyzing forces that will warn us when we're really getting to the edge of the cliff.
That is the central banks. Japan's central bank is out of control. I watch that. It's important to know what happens there because if the great money printing debt experience in Japan finally fails, it's going to be noted in markets all around the world. I watch the ECB, European Central Bank. It is divided between Germans who want to try to maintain some semblance of some money and the rest of Europe that would like to print and drown themselves in debt as far as the eye can see. It's important to watch China, which is a giant house of cards, that's on the verge of collapse, and that will ricochet around the world in terms of the countries that supply it. Australia, Korea, the so-called emerging markets, and what it'll do to the theory, which I think is false that China is the engine of growth in the world, it is not. It is the biggest speculative disaster in human history.
* * *
David Stockman: Well, the crisis is unfolding by the day. It is not too late to start preparing right noW. Now is the time to begin to save if you can and minimize your outlays for unnecessary luxuries. This is going to be a devastating crisis, and people will be happy down the road if they take the steps to prepare today.
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i know right...
Shit... The introductory musical score ALONE made me crap my pants!!!
Tracy McCollughs tits were what cold shocked me back into reality!
Reagan's economic turnaround known as 'Morning in America'
aka a huge increase in the national debt most spent on worthless armaments like the Star Wars defense.
JUST PRINT SOME More Paper Fiats Money And Pay Off More People And It Will Go On Indefinitely...
... As Long As Said Fiats Can Be Redeemed For F150's...
I fucking HATE it when video producers hide the controls... Not watched... Don't want to listen to that bimbo's prattling intro.
Just click on it and it will stop playing.
No need for buttons, ever.
Now, back to Stockman deceit propaganda.
Hasn't Harry Dent been predicting a crash to $250 per oz for gold? He thinks this can only end with a deflationary depression.
If he's right there will be a lot of unhappy gold bugs here at Zero Hedge.
Indeed ob1knob,
Dent seemed very negative about gold, and I did not hear any objections or disagreements from 'goldbug' Stockman!
Lemme take a wild guess: Stockman is just another politician talking he book and telling everybody what they want to hear? Was Stockman also part of Reaganomics?
in a deflationary spiral everything goes down except_______________...
ps. not gold.
Reagan's economic turnaround known as 'Morning in America'
Also known as the point in time when the US government sold out to Wall Street...
There are still lots of Kool Aid drinkers who wanted his face on Mount Rushmore man. He was the first of the spin era. In the 70's you had Nixon, Ford and Carter, who didn't fully embrace the wag the dog world. Then along comes an actor who understands how/why people believe things. Since then we haven't turned back on debt spending. Just look at the charts. The change of slope on the graph starts in 1980.
Picasso's
yes, harry dent has been predicting a low gold price, but i don't put much stock in his prediction, $250 there's just no way, and i think even as low as $1000 the comex inventory would be quickly wiped out.
i believe he's correct that there will be a deflationary crash, probably a worse one than 2008, but that will result in massive QE / money printing that sets off hyperinflation.
i am not really buying gold right now, just stacking cash and waiting for the right moment.
it seems to me the deflationary crash has started, with the oil situation and the greece situation, not to mention the latest austrian bank situation. debt-based financial instruments are not going to be paid back.
but i think it will be a fairly short spike down in the gold price, then off to the races.
Stockman's right about everything except the time between crashes...7 years , not 6. 7th year SHEMITAH which ends 9/13 (except thats a sunday) so watch the market on friday 9/11 if you will. and look at the market crashes which occurred on the very las day of shemitah years 2001 and 2008. scary....
Perhaps there is a pattern there but could you leave the numerology/superstition stuff to a different site? No offence but I think the focus here is on data.
Sorry but once you scratch beneath the surface, you find that the asshats at the top are very superstitious and into numerology. It would behoove you to read up on the "bullshit" they believe in and act on.
for gold to go down to $250, the current production cost would have to lead the way down. It was $1250 /oz at $100/barrel -I imagine its probably around $800-$900 at the moment with oil at $50.
But for the production cost of gold to be $250, poil would have to be, what, $10 a barrel?
There are a number of levels of the spiral that everything has to descend before we get anywhere near $10/barrel - and hyperinflationary straight-to-main-st helicopter money will, in my opinion, certainly flow before that happens - or a great reset, one of the two
you might see $250 on the paper market. But there wont be a gram of physical available, anywhere. Period.
i might add that even if you think cash is king, you gotta keep it in a safe, coz bail-ins and total bank wipeouts are gonna make you wish you held your gold even in the event of a $250 handle
quite right.
when i say cash, i mean cash. green paper FRN $ bills. as odious as the USD is, at least you can hold it in your hands.
that's different from $ in a bank account, which is just a ledger entry on some bank's books saying that you are an unsecured creditor to them.
Why will gold bugs be unhappy will a good suit not cost $250.00? Course it will, now comes the ".gov is gonna take it all and you can't eat it"...
"Hasn't Harry Dent..."
Like him or not he's been right most of the time.
Gold won't lose in fiat terms in a serious deflation. The entire financial sector is so overleveraged and reliant on debt and its continued servicing. Debt becoming harder to service because of deflation will eviscerate the financial sector. Banks, brokerages, insurance companies etc and state treasuries will all be looking very shaky as defaults loom.
Golds (and silver) held outside of the financial sector will look really good to a lot of people. Demand will be high enough to keep the price up in spite of efforts from the financial authorities.
I think that the best gains (in real terms) for gold are about to be realized over the next two or three years. I don't expect gold to break $3,000 except for a temporary spike or two over the next two or three years. The gains we see then will be vastly more than those to come later when the central banks manage to finally reflate the currencies.
Sure the price will be a lot higher but the pile of fiat you get won't get even close to what $3,000 will buy in a year or two.
Gold will do just fine when the creditors start jumping out of windows.
Long fucking interview. I should have packed a sandwich before it started.
or a taco
It sucks not having any controls over the video, but I guess that (plus the annoying autoplay function!) is part of the "buy our newsletter" infomercial/brainwash theme...
Watching 30? 40? 50? minutes full of promises on specific advice on how to shelter during the economic collapse, only to find out it's more vague bullshit and another 'newsletter' and more books that these fruitcakes want to promote. Pfff, thanks!
Oh, and did you guys notice how negative Dent is about gold? And David didn't exactly contradict him on that one, now did he? How different from that very same David Stockman always on KWN, where he always talks along with Eric and is bullish on gold?
you have controls of video, idiot, click on the timeline ....
I keep my volume control on OFF until I want to hear something.
She's a good looking woman but a little too articulate to be a bimbo
I would be surprised if they were trying to pass off somebody that old for her looks frankly.
haha yea i was just thiking that
she old... =)
mute button is your best friend yep.
Reagan proved deficits don't matter - Cheney. Get the shit straight bitchez
http://upload.wikimedia.org/wikipedia/commons/f/f1/Total_US_Federal_Debt...
http://commons.wikimedia.org/wiki/File:US_Federal_Debt_as_Percent_of_GDP...
Talking about debt (living beyound ones means):
US Private Debt (Not including financials and government) = $42 trillion dollars / 316 million Americans = $133 thousand each man, woman, and child.
http://www.federalreserve.gov/releases/z1/Current/accessible/l1.htm
Those debt liability numbers tend to be largely meaningless. And people don't seem to be living beyond their means so much as not having any money (and therefore just living at all is living beyond ones means).
There's a lot of money out there but it's not moving around much.
James_Cole
meaningless?
What are you smoking?
Try to calculate, or, just guess, say, 3% interest rate.
Americans will be paying OVER One Trillion dollars in interest to the bankers, yearly.
On money the banks never had.
even many zh'ers are clueless. moar i visit i am starting to think this is the petting zoo.
some stroke it verbaly, other makes remarks b/4 talking to the animals and of course the good dr. zuess can pull it all together for afew. good reads for a few here that could go to kindegarten or back to yahoo bb's...
ok, the debt doesn't matter. ask greece if it matters. ask bruno if it matters when you margined too much. ha, what a fucking joke this blog has become. time for a blog that allows ignore...
We quit using "b/4" in 2nd grade.
Shit just hunting for / makes me eager to type "before".
And WHO is"dr. zuess".
4th grade I mastered Upper Case.
Another thing, we were MUCH cuter when we were kids, or IS that a kid? Can't tell. Looks sort of ill.
We? Speak for yourself, asshole. Think b/4 you post.
meaningless?
What are you smoking?
I should've said abstract rather than meaningless. I meant in the sense that it's totally up to interpretation and change at the drop of hat, sort of like that excellent sarcastic bloomberg article a while back looking at BAC financials and how a profitable quarter / unprofitable quarter was all up to philosophical interpretation.
People have a very simplistic view of these things like the numbers are fixed / etched in stone or could be compared to an individuals financial scenario.
http://upload.wikimedia.org/wikipedia/commons/thumb/8/8b/UK_GDP.png/350p...
I can see why to some, debt is really meaningless.
After selling my 2nd business which was success, but failing on the 3rd, and have the experience the 1st which didn’t survive a year, I was determined not to make the same mistakes on my 4th... so we invested smart for a backup, good strategy so we thought, we allocated a lot to PMs as a safety net. We also paid as much as debt, to keep our operational cost low, we left the gamble of overpriced stocks all well, and today we almost have no debt and a load of devalued PMs. Our latest business is very slow, and things are not so good, at the moment we can’t see a way to expand the income to create more assets for later on, and so we still entrenched in the machine, covering costs.
Now I look across, and I can see the debt junkies, the smart ones perhaps, with debt up to their eye balls!! They embedded themselves in the debt machine. Those actually, have been able to acquire more clean assets, despite the parallel debt, and with the surplus of the debt created assets, they were able to put aside more PMs and real firm assets than we could dream, they were able to purchase assets only with the cash flow in different markets and build up a better safety net, all under the radar, and that because they used the debt economy to its full. Debt really became their best friend.
Now I can see, if the SHTF, debt it will be really meaningless… the debt junkies will just walk way and move on to manage their assets elsewhere. It seems that we all got it wrong again, the game wasn’t paying off the bills, but getting in debt faster, and taking as much as clean cash flow as possible from the game. They knew the system wasn’t to be saved, debt became a trampoline and not something to get ride off, perhaps tricked. In today’s game there is no way you will get rid of debt if you are playing, and fighting it is killing most of us. This was always a debt economy from planning, the ones that saw that 20-10 years ago are now well off, we maybe have another 5-20? years ahead under this model… but it seems that a change is around the corner especially when folks start noticing the game played in the background, however, every time that you think things will be over, somehow things keep on going longer than you think, so we may well have a chance to redeem our incorrect choices.
It’s really every person for himself at this stage, and grab as much as you can is the winner trend, by debt means before this whole thing comes down, and then… the music will restart all over again. There will be no end of the World people, perhaps only for the fooled.
It can go on indefinitely until it can't.
Mourning in America...
Worthless? Bankrupting the Soviet Union was worth every penny!
well, yeah but, EVERY penny?
We didn't just bankrupt them, but also ourselves. They took the fast-acting poison and have recovered and are much healthier; while we took the slow-acting poison and are finally sufferring from the same fate.
You can easily find out where Tip O'Neill is buried. Why not visit next time you
It would be fun to do a tour of evil politician graves: Tip O'Neill, Teddy Kennedy, FDR, LBJ, Harry Truman, Teddy Roosevelt, Woodrow Wilson and the like. Go visit each grave...and piss on it!
WTF I watched the whole thing and although they go over everything we already know, this is simply a commercial for Stockmans book and Dents services. This doom porn is creating a great little industry.
Yeah thats what I thought too...
https://flic.kr/p/r9GXRj
Fed's artificial crises
Until the National Debt's debt service is greater than tax revenue, NOTHING will change. Looks like we could have several doubling's before that happens (e.g. 18 Trillion to 36 to 72 to 144 Trillion).
Hero Protagonist
Two more doubles, or interest rates around 8%.
Americans, in 2014, paid $431 billion dollars to the bankers in interest.
So, if you divide $431 billion dollars paid in interest against Americans $1,715 trillion dollar paid in income taxes in 2014 = Americans gave about 25% to the banks, via income tax.
US Total Debt: $18,084,817,920,825.53
http://www.treasurydirect.gov/NP/debt/current
Interest Paid on US Debt in 2014: $431 Billion Dollars
https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
US Total Taxes:
http://www.usgovernmentrevenue.com/yearrev2014_0.html
The solution: Sovereign Money
http://sovereignmoney.eu/
thanks, since i'm in a 6 percent bracket(fed and state) b/4 local and sales tax and ect. i don't feel any moar blessed by not paying my fair share, ha. 25 percent of every fucking dollar for the cartel. there you have it. the plan from the secret meeting of 1913. now go shout from the mountain top and hopefully someone gives a shit...
No no man... At zerohedge there is no discussion of the actual problem. Just somewhat witty banter and an occasional STFU! =)
http://wdtprs.com/blog/wp-content/uploads/2014/04/thought-police-2.jpg
(dont worry scro, there are plenty of tards out there livin kick as lives. My first wife was tarted... shes a pilot now.)
https://www.youtube.com/watch?v=qkPGlVqqEP0
Well the first five minutes are selling books. Shut it off at that point.
Stockman has written a book every year since Aftershock and the financial crisis and each one is a fear mongering sales pitch for their sh*tty mutual funds and newsletters. Not one of them predicted the last 4+ years of growth in the stock market (hence the reason their own mutual funds have followed his lousy advice in his books).
Richard Nixon, Republican, started all this by taking us off a gold standard. Reagan (R) fueled it with credit card bubble. Just saying...for all those who blame the liberal/Keynsians. All parties blow chunks, but let's keep it real at least. By the time the past two retards (Bush and Obummer) were involved the outcome had been sealed and the dog and pony show in full effect.
All that being said, stocks will be up big on Monday.
And Nixon took us off the gold standard because LBJ's Great Society spending made it more lucrative for our trade partners of the time to demand silver and gold than a paper dollar to settle accounts. Spending went way up long before Nixon was elected in 68. And it wasn't Nixon that got us INTO VietNam, either, if you want to start historical finger-pointing.
Mike in GA
Wrong.
Nixon did that because of all the dollars coming from Asia (Vietnam War).
LBJ the Vietnam War he tried to win by taking the Social Security Surplus and making it available for Government spending, by stealing real money in the fund, and replacing it with T-Bills. This allowed his famous "Guns and Butter" policies. Massive Social Welfare spending combined with the Vietnam War spending, and the Cold War Military Budgets.
LBJ started the looting of old peoples pension plans to allow massive government ovespending. Since then, all the SS Surplus was stolen and replaced with T-Bills.
Reagan was the great tax cutter, shifting taxes from rich to middle class. Reagan also spent more than LBJ on military using deficit spending and SS funds to do it.
Clinton was the author of International Corporate control of trade rules and Banks control of banking regulations. Clinton turned both Banks and Corporations free to financially engineer, and de-industrialize America.
Bush slept throught 9/11, freed the Saudis, then began wars and spending at a rate never heard of in human history, deficit spending fuled that.
Obama. Obama is the 3rd-4th Bush terms. Same everything, same officials, same policies, only worse.
If you are an Ameican, and you vote. I wonder, why do you vote? Have you ever experienced change? The elite rule is absolute. There is only one party, their party. Who are they? Well, if you don't know, I feel that is your fault, not mine. Just give it a little effort, I bet you can find out.
Jack Burton
Social Security intent from the beginning, but not told to Americans, it was to finance US deficit (Vietnam War).
Retirement plans intent from its creation, again, not told to Americans, it was to finance Wall Street bankers.
Anyway, I think I misunderstood you on Reagan tax cuts “Voodoo Economics” helping America middleclass.
"If you are an Ameican, and you vote. I wonder, why do you vote? Have you ever experienced change? The elite rule is absolute. There is only one party, their party. Who are they? Well, if you don't know, I feel that is your fault, not mine. Just give it a little effort, I bet you can find out."
Of the bad habits I have given up in life so-far, this one, voting, is the most destructive, vile, illogical one of them. And I waited far too long to quit... and should have never started at all.
Who are they ???
Well, they are part of a club
and you ain't in it !! (George Carlin said this several years ago; still true today)
First thing worth reading on this entire page. Nice work.
These theories are all interesting and well and good, but unless you were high in govt during Vietnam making the decisions you really know jack shit. Sorry.
What we do know as fact is Nixon took us off the gold standard, Reagan fueled a personal credit card bubble, and Bush exploded the national debt. All I am saying is someone who falls for the narrative that Keynesian economics is liberal economis is a complete fool.
Also, Harry Dent is wrong about everything. He's as bad as Gartman.
Nixon's decision was forced by LBJ. Period. End of story. FFS.
The bottom line is the trouble started with Keynesian/liberal/statist politicians who needed a painless way to expand the nanny state -- guys like Wilson, FDR, and LBJ.
Granted, Bush exploded the national debt. But, curoiusly, you fail to give any credit for Obama, even though he will increase the national debt more than all of the other presidents combined when he is through.
I'm sure that was an innocent oversight. /s
I mentioned Obummer.
Actually you're both right - Nixon did close the gold window while it remains to this day unclear that he actually really needed to. And it was the earlier Wilson and FDR as well as some large lobbies and a strong Keynsian economist group out of Harvard that caved to deficit spending. Even Friedman had problems with the gold standard (which kept government largess and profligation in check), because it could not allow the government to manipulate the money stock if its value were pegged to gold. One really can't single any one person out - whether (s)he was complicit or not. But, definitely a chain of events and each person/institution had its role whther they wwere conscious or not.
"But, definitely a chain of events and each person/institution had its role whther they wwere conscious or not."
In politics, nothing happens by accident. If it happened, you can bet it was planned that way.
--Franklin D. Roosevelt
Good job posting a fake quote FDR never said. What is next, those fake Jefferson quotes about central banks? lol
Actual FDR quote -
"In politics, nothing happens by accident. If it happens, it was planned that way."
So whip it. Whip it good Devo.
If it is fake what evidence do you have to back up your claim?
That quote is attributed to him in many places. So please do show me how you are certain it is fake. I would like to know.
Or are you just a troll...
Off base on this one. Social security from day one has been invested solely in govt bonds. Thus from day one the government took every penny and spent it. The difference with LBJ is that social security became part of the government budget which until recently had run a surplus thus reducing the deficits, ay least on the surface. Going forward it will increase the deficits.
The answer for social security is to have the fed buy the current social security debt make social security whole and then let social security earn an honest income funding the primary mortgage market or making some other types of secured loans. It's bogus that our tax dollars go to fund the interest of our future retirement income. Of course we would need a reset in the real estate markets before loans would be priced right to do this. Also some rules offsetting future benefits on unresolved defaults would be needed.
In addition to buying SS debt. The fed should buy all govt debt. The deal the govt has with the fed is that all fed earnings are refunded less operating cost. This would be basically tun the fed into a counting machine that simply tracked the level of government debt. And it really wouldn't be debt once this agreement was made. Just let the govt print what is needed and the fed counts it. A natural growing economy needs more and more money yearly to allow people to take care of their current and future needs. Let's let govt spending serve that need and eliminate the income tax at the same time. Again rules would be needed to limit increases in spending and maybe some rules on limiting wealth passed forward. But with banks creating money gone, the income tax gone, and interest no longer paid by the govt our spending levels would fall dramatically. If the country feels like it needs to spend more than the cap ony a national referendum would allow it.
Going back to social security, eliminating the inflation factor by basically eliminating the interest on money created, would result in great reductions in future benefit cost all while creating a greater income from the program. Social security could likely be made solvent far into the future.
Unless, of course, our Masters have started the day short. In which case...
Craig
If you believe you have a master you've already lost at life.
Its funny (well funny sad) that people say 'nixon took us off the gold standard'..Nixon was NOT a fuckin economist. He did what he was told to do.
JUST LIKE OBAMA
JUST LIKE BUSH
JUST LIKE CKINTON
JUST LIKE BUSH HW...
is eryone stupid?.. i look around and read the posts of blame/ solution etc...
All the fools who think these 'folks' call/called the shots..deserve EVERYTHING
this stuff has been no secret since my grandfather was a kid (and prolly before. .although i have no proof of stuff from before then. What i/ we DO have is warnings from the friggin founding fathers (no offense mothers) of what would happen if / WHEN Shit got outa control.
Stop blaming boomers
Stop blaming everyone else and fckin do something.
Meh..fuckit..its easier and cooler just to post our feelings herd on a website from an easy chair of moms basement.
Yup..founding fathers were right. And..it proved to be a much easier battle for the bad guys than they coulda ever imagined.
Its over. We lost. At least as long as we sit here and bitch bout the probs..insteada doin something. Nary a bullet to be fired during the final war. And it ended before we even noticed it was a war this time.
What are you doing?
After you wrote that post, you watched porn and took a nap, admit it.
You can't just stick a gun in the ribs of the productive and demand X% of their work. You have to justify it with programs for the 'needy', and you need an army of dependents ready to tear the country apart if the slaves get uppity.
That's a nutshell of the demonrat party platform. I loathe the republcan'ts because of their cowardice, but there is literally nothing good about the demonrats.
It's hard to believe people still think there are two parties and/or that any party is relevant, worthy of affiliating with, etc.
Era Of Shattered Illusions
False and/or unsustainable standards will be shattered by reality.
True.
Like the belief that the modus operandi of nature applied to man's technological world will result in something other than catastrophic failure.
Our technology develops exponentially while man's evolution is piecemeal at best.
Stand by folks, 9/2015 will be a pivot point for implementing the NWO global banking system...
You heard it here first, (snort, chuckle, hrrumph)!
Really, many have been saying that we need a cataclismic event to implement the next phase and a banking collapse would be a good injection point...
DaddyO
So in order to make the world pliable enough to accept a world currency, the best situation would be for all countries to be equally bad/non sustainable. The great reset will result in one currency, where previous debt will be wiped away.
They all know it and want to throw everything including the kitchen sink. Like a company after a buyout, they throw everything into one big loss quarter and blame it on the past bozos....
Yup, circa 9/13/2015, the end of the Shemitah that tends to go out with a bang every seven years.
Time will tell.
This can keep going longer than you can stay short. Don't bet against it.
This is the age of self help and do overs. You have no tools in your box to win against these thieves. They will outlaw your position when they have to.
They won't even bother - everthing is already outlawed - i.e. outside the law.
i did once again!! i have shorts on dow. i know i'm a loser, but i just have to keep believe in some sort of return to equilibrium. i'm not even going to see a 'dip' - any 'dip' is just another btfd until the next market high in 2 days.
They will kick the can til they can't. ...hope that is sooner rather than later.
Deagle.com reports a decline in US population of 77% by 2025.
I suppose you have a few more years to play before the SHTF.
http://www.deagel.com/country/forecast.aspx?pag=3&sort=GDP&ord=DESC
Plan accordingly.
It's the doom of men that they forget.
It's never different this time.
Yeah sure. Pick a completely random number and provide none of the underlying calculations or almost none of the rationale for them.
a question for you, chuck:
who is deagle.com, and why should we believe their predictions?
do they have some trained monkeys in a lab throwing darts at a dart board with numbers on it, or is there something more to their methodology?
i've seen a couple of people on zh before post that link, possibly it was you, but no one ever provided any background on who runs the site or why we should consider them credible.
what's their track record on predictions in the past, do you know?
you forgot about all of the illegal aliens and Syrian refugees (ISIS sleepers) coming over courtesty of Obama & CO
Fuuuuuuuuuuuuuuck.
QE came and went, nothing happenend.
We have a nice Dow 30 making new highs...that must count for something!
reagan = trickle down deficit fueled voodoo economics. rot in hell ronnie, ya fascist putz.
RONALD REAGAN
2-bit cowboy actor with a great voice and Hollywood 'star' support.
Got him elected, it did.
He was no fucking cowboy. Dipshit could barely even saddle a horse. They used to fly helicopters up to the Palisades and let him off where he'd then get on a horse for the photo-op like he 'rode the canyons' there.
"He was no fucking cowboy..."
But he was fucking young boys. Rainbow Ronnie was giving DC call boys 'midnight tours' of the White House. The public never caught on. Former trader Bob Chapman reported seeing a blackmail film in the late 70's while in Malibu in which Ronnie was 'interacting' with a young male. Obama isn't the first gay prez... Red Ronnie beat him to the punch... and probably Abraham Lincoln and a few others.
https://www.youtube.com/watch?v=ehleJE5evBI
I doubt the homo charge, but Reagan WAS an FDR Democrat and some did call him "Red Ronnie" back in the day. OTOH, Hollywood, since its beginning, has always been the domain of closet pole smokers.
Semi- the truth is stranger than fiction.
So obama and congress don't know what they're doing? They know exactly what they are doing.
Making slaves since 1913.
It's all been planned out, at some point days or months from now the Fed itself will stage 'the great crisis' and everyone of course will say 'do whatever, we don't care, just SAVE US!' then the 1 world control will be in place.
The Fed is TBTF, but what happens when they cry wolf?
Why, you'll give them the shirt off you backs to protect your god.
Mr. David Stockman.
I write the following to test your credibility.
Stop whoring for Wall Street.
http://www.showrealhist.com/yTRIAL.html
http://patrick.net/?p=1223928
You mean the ferocious Tax & Spend Policy and out of control Wall Street criminality and Bailouts are bad for the country?
The way the world is now constructed just doesn't feel natural and right....
"So David, do you think the republican congress can save us from this economic sundown that we've been discussing today"?
~The short answer is ....Fuuuuck No! The piece of shit republicants are exactly like the democraps! We have a single party system who's voters are to fucking stupid to understnd that simple little fact!
Big gubmint worshippers! Only a complete an utter fool would believe differently!
NO shit ..
So many books to sell, so little time.
Finally, something that makes me start to even doubt Stockman...c'mon....Stockman and Dent on the same stage? Dent's a anti-gold douche.
And this dame???!!! She puts the Shlmatz in shalmatzy.
Good basic info for the general public - would have been far more effective without the moderator's scripted infomercial flavoring and all of the associated ancillary sales pitches born thereof.
Something about the production values makes me think they're going to try to sell me a time-share condo.
"the Fed has painted itself into a corner..."
I thought they had about 10 years ago, but apparently the corner has infinite dimensions.
No corners in a round room.
Totally and irrevocably screwed are we all.
(most of us at any rate)
America should just be divided into White-European, Hispanic and Negro parts of America. Hispanics will most likely unite with Mexico, Negros -- well, they are parasites, so they wouldn't want to go their way on their own, unless it becomes unavaidable. As for white, Aryan or European America, it is well known fact that part is by wide and large the most productive and capable one as well as the most ready, able and eager to become truly independent from that parasitic Negroid part, and of course to be free of Anglozionist oligarchs rule. To some extent, Hispanics are also able to stand on their own -- they can feed themselves. Only Negroes cannot. lol Mother Nature ought to take control of the Negroes, to cut their numbers to the level at which they are able to feed themselves. God only knows what will happen to their cousins in Africa. They are breeding like there is no tomorrow there. Probably think they will colonize Europa. lol
Ever hear of Liberia? You'll know we've turned the corner when that patch of ground is put to its intended purpose---the re-settlement of America's negroes as far from civilized people as possible.
Mhm. No, haven't heard of such plans nor do I think it's possible under Anglozionist rule. They want, how they call it... a colorful society, hm? They want to make whites into brown people all the while chanting about some "diversity." Well, if everone is brown, then there is no diversity, right?!If all are of the same colour, then nothing is diverse. Logic has never been a strong point of your oligarchs, only travesties. Better to go seperate ways than to destroy your identity and all those attributes which makes you who you are, I think.
Stockman is a decent arbiter of Economic truth. How is it possible that he worked for the Reagan administration? Did he reform his ways and find God or something? Why is a real life _BUREAUCRAT_ actually telling the truth here? I, for one, completely agree with Stockman's synopsis of events leading up to this 2008 implosion, but stockman fails to get at the real underlying worry for the Banksters and the administrators of the banksters. The real worry is that they will not be able to reinflate the $1.5 Quadrillion Petrodollar Dark Pool Derivatives Universe in time to avoid another crash. By my own proprietary calculus the World collective of Banksters have exactly nine days left before the entire World goes to Hell on a handcart. Moreover, Stockman is naïve to think that civilization will return to some semblance of normalcy post-crash.
WELCOME to the End Times of Wall Street, Mr. Stockman.
:|
MOU - maybe you're not old enough to remember, but Stockman got ejected from the Ronbo Administration when he started making noise about the budget in the 1980s.
Thanks for the enlightenment, cpnscarlet. Back in the 80s I was in Mechanical Engineering/Particle Physics. In the 90s I moved into Expermental Psychology, and after that I started thinking about Macroeconomics. I used to watch Greenspan pontificate on Economics throughout my upbringing by my Chartered Accountant father. Since my father died I have been examining Economics very closely, but you are right, I was unaware of the historiography surrounding Stockman's time with the Reagan camp. Thanks for taking the time to fill me in. Someow Sockman and Reagan seemed a tad too weird and now I know why. cheers
MOU- Stockman's strange appointment to the Reagan cabinet wasn't as wierd as Paul Craig Roberts being there too.
That puts it over the top of weird given that they were both on that admin. Frankly, I was not aware that Paul Craig Roberts was there too. I will pay closer attention to these guys from now on for sure. cheers
So the Federal Reserve “is taking 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.”
I would call this a spectacular understatement.
He then declares the people “don’t want to hear the truth”; and omits to explain their basic policy regarding their wish for ignorance. A large fraction of them will die, or kill, rather than correct their self-destructive habits or beliefs. These people control instruments of power across the globe; as far as they are concerned, if destruction of civilized society is necessary to secure rule by thieves… if extermination of productive and thrifty classes is necessary, it shall be done.
And the problem, from our perspective, is, ‘How do we protect ourselves from their murderous political system?’ How, for example, do we protect our property (from physical gold, to businesses, to stocks and bonds (domestic and foreign)) from seizure by the Department of Homeland Security (DHS)?
By the act of Congress that established the DHS a system was created by which informers could make false allegations against anyone they please with near-total impunity. Of course, such informers aren’t described as informers; rather they are given the title “submitting person” and the DHS Act provided that their falsehoods will never be examined by any court or legislature or law enforcement agency. The legislation even specifies how this immunity is obtained. The “submitting person” only has to give an “express statement” that his lies were “voluntarily given” and that he expected “protection from disclosure”. It’s all there, in the act that created the DHS.
I’m sorry guys, but silly season is over. Even if you own physical gold, live in a cabin in the woods along with a stash of ammo and AK-47’s, you lose. If you don’t fall to the horde of hungry homeless, you will fall to DHS death squads. All the homeless have to do is to wait until you collapse from lack of sleep (24, 48, 72 hours), then they march in, slit your throat and… let your imagination run wild.
If you own stocks or bonds, guess what: you’re depending on criminal and useless classes to deliver your purchasing power at the moment of their greatest victory. Did I mention something about ‘silly season’?
If you want to survive, you have to combine with others of like mind for the purpose of mutual protection, among other purposes. The big question now is, ‘HOW is this to be done?’ And the quick answer is, ‘You must establish First-Amendment assemblies – the only historically-proven method by which men have made their lives and property secure from rule by thieves.’
The American Revolution, for example, was powered by a large network of such assemblies: from town meetings, county meetings, state conventions and, ultimately, to Continental Congresses.
Let’s be realistic: this solution won’t be easy or quick… unprecedented adventures never are.
Have fun with your Continental Congress. The Redcoats weren't much better armed than the rebels. These days the bad guys have nuclear weapons. I wish your militia luck feeding itself in a nuclear winter, even if they manage not to die of acute radiation poisoning from the effects of cobalt-salted nukes.
And if you really think the bad guys are going to let the meek inherit the earth while there's anything left on it worth inheriting, let me know what you're on, because I want some.
When the bad guys go down, so will we. They've made sure of that. Go read up on the doomsday weapons our masters have poured billions of dollars into creating and maintaining just in case the day arrives when the proles can no longer be pacified any other way.
Don't think they'd dare? Honeychile, they've been looking forward to the day robots will make us obsolete and they can kill us all. If they have to move up the day of the Great Carbon Footprint Reduction, well. Who cares if proles die?
mercy, truth is a hard mistress... i at least want some snickers bars and the promise of a timely burial for the carcass, probably won't even get that ... may die in the snow like hatchet jack (better than cooking in EM rad)... i do have to say sydney pollack made a fine movie though :-)
https://www.youtube.com/watch?v=BY7QDq2qrGo
Now I lost my nerve
because I don't want to burn.
And I wouldn't say my missionary zeal is gone.
There's a high wind up ahead.
We've left our old for dead.
Our dancing days are numbered.
You can move up through the corporate ranks.
No use running with the Chinese coming.
And I don't wanna see this world burn no more.
It's dog versus master in this ruling class of gangsters.
And I don't wanna see this world burn no more.
Georgie wrote a book and Sarah's naming names.
Obama's on the hook and O'Reilly's laying blame.
They saved Reagan's brain and there's bodies on the plane.
Our dancing days are numbered.
Yeah - we're going up in flames.
Yeah - it's alright.
Yeah - it's okay.
No one penetrates the Wall Street ranks.
There's no use running with the Chinese coming.
And I don't wanna see this world burn no more.
It's dog versus master in this ruling class of gangsters.
And I don't wanna see this world burn no more.
I'll see you in the slip.
There's houses left to flip.
No sense bumming with the payback coming.
And I don't want to see this world burn no more
Basically if there's a talking head intro, I'm out. It's usually there to predjudice you one way or another and I just don't have time for that shit.
Stockman never says in 50 words what can be said in 1000.
What a collection of cliches, hackneyed phrases, and self evident notions.
stocks went up for the most part globally in february, i believe, 5% (i might be wrong). so, of course, stocks should normally go up 5% every month, or 60% a year? is that correct? i think i believe that is what the sophomoric cheerleaders from cnbc presenters to 35 year old fund managers tell me is correct. 7% might be too much. but 5% is normal, bullish.
this is beyond sick and perverse at this point. what asset goes up 5% a month? forever. - oh, i forgot. crude oil. there is a shortage. just like there aren't enough apple shares to buy, i have to GET IN NOW, before that baby goes to $200/share.
sarcasm if you do not get it.
Need to toss in the Ginsu knives and a bamboo steamer.
all very informative, but what's really new here? can there be anything new, really, as this story approaches it's inevitable, horrific climax?
Bored? Shifting attention away from the fact this heist is about to end and when it does, there won't be a banker left alive?
http://www.storyleak.com/greece-goldman-sachs-rothschild-help-economy/4
Who better to help Greece escape financial turmoil than Wall Street mafia head Goldman Sachs and the international banking elite family known as the Rothschilds?
Read more: http://www.storyleak.com/greece-goldman-sachs-rothschild-help-economy/#ixzz3TAocwdtfAccording to an official statement as reported by Reuters, Greece’s bank rescue fund has turned to the banking mafia duo in order to sell off two Greek banks (Proton and Hellenic Postbank) that were all but decimated by the economic turmoil in the nation. And who better to help sell these banks and help Greece to get back to a stable economic than Goldman Sachs, who actually was very helpful in helping to wage financial warfare on the Greek people through hiding Greece’s slimy debt.
But that, of course, is just seasoning on top of the ironic yet horrific dish cooked up by this rescue fund in choosing the very origin of the modern banking mafia through turning to the notorious Rothschild family. From funding mega wars to originally making their massive wealth through outright deception following the Battle of Waterloo, electing any Rothschild to act as a Greek adviser is a choice that goes against the interests of the Greek people.
But then again, that is the way of the international banking cartel.
Read more: http://www.storyleak.com/greece-goldman-sachs-rothschild-help-economy/#ixzz3TAoV6v1Q"David Stockman - perhaps best known for architecting Reagan's economic turnaround known as 'Morning in America'"
I used to believe that steaming pile. Though I like most of what Mr. Stockman has to say these last few years, it was Greenspan replacing Volker, and then turning on the M3 spigot and dropping rates that really got the "Morning in America" going. Unfortunately, under those same programs getting bigger and badder as the years have passed, those of us who love what this country could have been will have been "Mourning in America".
"David Stockman: Well you know, the problem is the fed, I've described, is a rogue institution."
The FED is one arm of a privately owned malignant, rancorous, vicious, vindictive, global criminal enterprise which includes every vice known along with regime changes, simple murder and assassinations, wholesale ownership of the barking seals in congress and advertises themselves that they are too big to jail.
TBTJ? I like that acronym.
All true, but nobody will listen since it is produced like a cheap SNL skit.
I suppose he's right and all, but he's a prophet howling in the wilderness.
Scary moments in history? The 2008 meltdown was a historic "learning moment", yet there is no sign anyone has learned ... except for a few of us peons here on ZH. And what *other* disaster happened in 2008? You know it, the immaculation of the Obamanation, and its converse, the failure of the Republican opposition to put up a reasonable alternative. That's like getting hit with three Chicxulub asteroids at the same time.
So if we've printed four trillion since then, only to give about 3.9t of it to banksters, well, surprize, surprize. What next, global brush wars, nuclear terrorism, runaway llamas? Howl away, Stockman baby, howl away, we'll probably get it all before it's over.
They have been saying this for 2 years. In the meatime the markets have been hitting new highs weekly.
You need to sell whatever gold you have and get in on that permanently high plateau.
LOL Your sick dude! LOL
Did you ever spend time as a child with a magnifying glass burning ants? I can see it! LOL
Yoooohhh,ZH (as Rocky Balboa would say)
Didnt i just here the man say deflation
Whats amatter you
He gives 2 reasons. One and Secondly
DEFLATION IS A BIG BEAR
Yoooohhh,ZH (as Rocky Balboa would say)
Didnt i just here the man say deflation
Whats amatter you
He gives 2 reasons. One and Secondly
DEFLATION IS A BIG BEAR
Yoooohhh,ZH (as Rocky Balboa would say)
Didnt i just here the man say deflation
Whats amatter you
He gives 2 reasons. One and Secondly
DEFLATION IS A BIG BEAR
Yoooohhh,ZH (as Rocky Balboa would say)
Didnt i just here the man say deflation
Whats amatter you
He gives 2 reasons. One and Secondly
DEFLATION IS A BIG BEAR
Yoooohhh,ZH (as Rocky Balboa would say)
Didnt i just here the man say deflation
Whats amatter you
He gives 2 reasons. One and Secondly
DEFLATION IS A BIG BEAR
Yoooohhh,ZH (as Rocky Balboa would say)
Didnt i just here the man say deflation
Whats amatter you
He gives 2 reasons. One and Secondly
DEFLATION IS A BIG BEAR