"It's A Coup D'Etat," David Stockman Warns "Central Banks Are Out Of Control"

Tyler Durden's picture

We're all about to be taken to the woodshed, warns David Stockman in this excellent interview. The huge wealth disparity is "not because of some flaw in capitalism, or Reagan tax cuts, or even the greed of Wall Street; the problem is central banks that are out of control." Simply put, they have "syphoned financial resources into pure gambling" and the people that own the stocks and bonds get the huge financial windfall. "The 10% at the top own 85% of the financial assets," and thus, thanks to the unleashing of almost limitless money-printing, which has created a massive worldwide financial inflation, "the central banks have created and exaggerated the wealth gap." Stockman concludes, rather ominously, "it's a coup d'etat, the central banks have taken over - unconstitutional domination of the entire economy."

"Everywhere, misleading distorted signals are being given to both public and private sector players about financial values... the prices have been falsified by The Fed.

 

We can't print our way to prosperity... The Fed is now petrified that Wall Street will have a hissy-fit when they tighten."

Full interview below:

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COSMOS's picture

A man is judged by his actions. So are countries. We can judge US and China by their actions. Personally I think it is pretty clear, one is trade, commerce and infrastructure not only domestically but also Internationally with many countries who have been ignored by the US. $250 Billion/10 years is a hellishly huge sum in addition to $50B for AIIB, $50B for Silk Road, $50B for Renewable energy and $180B already spent in Africa, not mentioning hundreds of billions Dollars spent inside China to build domestic infrastructure. 

The other guy? Rattling the Sabre wherever it goes. Threatening with modern weapon to export the "Democratic" system that is even failing US itself. No wonder where US forces her will, it fails, causing lasting chaos, blood, death and destruction. Yet US has no problems repeating its mistakes over and again! Such behavior is non-sustainable. US is heading for a Big Crunch. It's just a matter of time. 

Also want to ask Obama, how long US intends to keep on printing bank notes and raising its debt ceiling until the house of cards collapses?

Headbanger's picture

But the elites don't get it simply because they became very successful from how things were in the US

So they see nothing wrong with the status quo

But they know it's slipping away beneath them which is why we have militarized police, government spying on everybody and now banning cash.

We're in for a very hard crash now which will obliterate the status quo.

The big question now is what will take its place?

For one,  We will see the demise of the Two Party political system we have now as lesser parties gain more power.

We may also see several states secede in the next few years or even another Confederacy.

I wouldn't rule out a military coup here either.

eatthebanksters's picture

What is truly stunning to me is that the libtard Keynseians that run the Fed have always screamed loudest that trickle down economics don't work...and yet, what the fuck are they doing.  Liars or morons and they are in charge...we are fucked.

Nockian's picture

The point is that we have fucked ourselves. We let them do it to us. They figured out a system of control through democratic elections which are the equivalent of a football match coupled to a lottery. The winners and losers change every few years depending on public mood.

Ask anyone if they want to opt out and give up on the state lottery welfare system and you might as well be asking if we should lose the Earths atmosphere. The conversation is only about soft socialism vs soft fascism.

Virtually the entire western world is wedded to the idea of the state and democratic rule. They all want the Kool aid of state education, welfarism, central banks, tax and Monopoly money. They are terrified of the chaos they believe would result if the state disappeared. They totally believe in it to such an extent they would die to preserve it.

Two world wars, Vietnam and the entire sorry saga of Middle Eastern intervention, surveillance, failure to protect, educate, provide financial stability and create a widening wealth gap, police state, privacy intrusions on an Orwellian scale, increasing crime, dumber kids, pollution, droughts and a general decrease in our living standards. Absolutely none of it has convinced the masses it isn't the best option. They openly lie to the public, they take bribes, are involved in scams and wars and the most they get is a slap on the wrist before being shuffled off the stage and into wealthy retirement. If that hasn't persuaded people I think it's likely nothing ever will.

Sudden Debt's picture

EVerybody lets them do what they want in the hope they leave some crumbles behind for them.

Have you eVer noticed how people change when some rich bastard is showing off? They become like cheap hookers! Smile at everything they do and say and sell out every belief so it fits into what these guys are saying.

Everybody hopes for the cfumbles and dreams of becoming like them so they can piss on every ody else.

And that’s what our society has become.

So in a way, our economy will implode, explode and implode again And I don’t see any reason to have pitty with those people.

I don’t believe in showing off, I like to have fun and enjoy my life with family and friends where everybody feels comfortable. 

Nothing will change. 

Just know this:

When all hell breaks lose:

1: people will go to people who prepared

2: if you told anybody you own silver and gold: buy a big ass dog and a gun or move away. And stop saying that starting now. 

 

The rule now is: act like everybody else, act stupid like they do, shut the fuck up about everything and blend in. That’s what I do now. 

Blend in, act stupid, be silent.

 

 

TheReplacement's picture

When I see a rich guy showing off I watch on the off chance he drops a gold watch or a hundy or two.

ACP's picture

I just learned Dave Stockman is vehemently anti-2nd amendment, so fuck him. There are other influential figures with the same opinion about central banks, but who have common sense.

Money Boo Boo's picture

that still doesn't excuse the fact America is one giant fart that has stunk up the room for nearly 400 years

Calmyourself's picture

Ha,just because he has sense regarding finance you expect his "elite" status to evolve.. He has no idea the world is full of wolves, America included he has lived in an ivory, Wall Street and Washington elite bubble his entire life. Take the limited wisdom he offers and

" You do not have enough ammo" Ann B....

JoeySandwiches's picture

His wife is also very pro-abortion. I dunno what to think about David Stockman, but he is very smart and eloquent about the matters of this insane financial world.

Sandmann's picture

David Stockman is not YOU. He thinks the same as you on some things and not on others. If you are looking for a clone buy a bigger mirror

JoeySandwiches's picture

I'm just saying that I trust him on financials and his articles are great, but I don't know quite where his moral compass points.

I'm sure it's not my place to judge, but I can comment all I want. And with saying that, I'm still going to enjoy his future articles.

shovelhead's picture

Sorry,

The hive mind accepts no deviation. Please enter the correct code.

 

philipat's picture

And the elected representatives of "We the people" were happy to sit back, do nothing and carry on spending. The Fed (Aka The Banksters) has indeed taken control and one can only hope that when it all caves in there will be nobody else to blame. They have painted themselves into a corner by not kicking the can back to Congress several years ago and noted that Monetary policy can only go so far. They didn't because GS/JPM et al wanted to remain "In control" and now the Fed alone will be left with all the blame. The politicians will be in the front row pointing the finger at The Fed and their "Bad policies", which of course Congress did nothing to change.

BandGap's picture

Live in the country, work in the city. Two different worlds. Have to keep family close so the discussions have been going on for awhile. It is nice to have other perspectives just to reaffirm you aren't going crazy. Crazy time these are.

Sat quietly last night until friends started talking about how their church was giving financial advice - literally, get your money out of the banks. While it's not crazy, when was the last time you heard of a congregation being told that it is a necessity to have the bills in hand for when the shit hits the fan? Our friends were slightly confused until I told them that, at least at the beginning of the crunch, having cash in hand will be valuable. All the other pieces of societal demise are easy enough for all to see.

City people (Chicago area) are hard to gauge. Not sure what they think but they eat a shitload of manure when their politicians speak to them. I would wager that all, or most of them, in the inner city have zero clue. Even in the suburbs they hardly question anything. I don't say a word. I have to plan to get out if Chicago goes up. It is already smoldering. Rahm the bomb and the new governor are on a collision course as far as finances. Interesting viewing.

 

Hobbleknee's picture

https://youtu.be/Ddi2TBnzdPo?t=1m4s

Take the children and yourself
And hide out in the cellar
By now the fighting will be close at hand
Don't believe the church and state
And everything they tell you
Believe in me, I'm with the high command

Can you hear me, can you hear me running?
Can you hear me running, can you hear me calling you?
Can you hear me, can you hear me running?
Can you hear me running, can you hear me calling you?

There's a gun and ammunition
Just inside the doorway
Use it only in emergency
Better you should pray to God
The Father and the Spirit
Will guide you and protect from up here

Can you hear me, can you hear me running?
Can you hear me running, can you hear me calling you?
Can you hear me, can you hear me running?
Can you hear me running, can you hear me calling you?

Swear allegiance to the flag
Whatever flag they offer
Never hint at what you really feel
Teach the children quietly
For some day sons and daughters
Will rise up and fight while we stood still

Can you hear me, can you hear me running?
Can you hear me running, can you hear me calling you?
Can you hear me, can you hear me running?
Can you hear me running, can you hear me calling you?

Can you hear me running (can you hear me calling you?)
(Can you hear me) hear me calling you?
(Can you hear me running) hear me running babe?
(Can you hear me running) hear me running?
Calling you, calling you

RafterManFMJ's picture

Somebody made the comment at work that peace would best be served if DC were incinerated by an asteroid or a "crust buster" nuke.

The consensus was - no shit - that'd be terrible as the U.S. would be invaded and conquered.

They couldn't say by who, "Mexico?" I quipped, but the idea of being without Washington's cock in their collective assholes gave them the willies.

We're fucked people, in the worst most non-consensual way.

OC Sure's picture

 

 

Raise your concerns at a second constitutional convention per Article Five's convention of states clause?

Put at the top of the agenda the end of counterfeiting by the federal reserve?

Put at the top of the agenda the eventual dismantling of the Federal Reserve's monolpoly on "banking?" 

Put at the top of the agenda the end of purchasing newly issued debt from the No-more-Treasure department with counterfeited currency? 

Put at the top of the agenda the end to paying off the principal and interest of this corrupted debt with the direct taxes on those who are taxed directly?

Discuss and implement whatever else is required to release We the Slaves back into We the People?

 

Pool Shark's picture

 

 

State legislators will never call for a Constitutional Convention; they're just as corrupt as DC. IF DC is the Major League of fraud, the states are just the AAA farm teams...

 

PS: While Stockman is right about Central Bankers why wasn't he saying this 30 years ago when he was part of Reagan's administration?..

 

TheReplacement's picture

Oh they might indeed call for it.  Of course, we definitely won't like who they send to the convention and we certainly will hate the changes they make.

OC Sure's picture

It has often been said since the 1960s that any second convention of states would be an unmitigated disaster. 

The principles are already in place and the natural course of events leads us to Despotism. 

What then is the alternative?

There are only 2 of which the founders experienced both:

Either boil like frogs or bloody revolt.

 

As the result of their experience, a less destructive course was implemented via Article V of the constitution by which ballots are given one last chance over bullets. 

 

 

 

JoWazzoo's picture

The Fedreal Reserve of the early 1980s is NOT the Fedreal Reserve of today.  Not close.  The Fed then had no problem driving interest rates to the moon to break the back of inflation.  Caused 2 rather bad recessions back to back.  Now we have a Fed that does not have the fucking balls to raise rates one fucling eighth of a point after ZERO for 6 fucking years.

 

And the Fed then would NOT have dreamed of QE.

 

Central banks were not out of control then.  They are now TOTALLY out of control.

OC Sure's picture

 

The degree to which they are out of control is not the issue.

The fundamental principle as to why a monopoly on banking is necessary and proper at all is the issue.

That this fallacy of a monopoly was implemented is the cause of the bankers aggressions. 

That they appeared not "out of control" then but do now has little to do with time and all to do with the principle guiding their actions. 

OC Sure's picture

"...why wasn't he saying this 30 years ago when he was part of Reagan's administration?"

One who acted right but then acts wrong has been corrupted.

One who acted wrong but then acts right has been corrected. 

Just be grateful he is in correction mode. 

shovelhead's picture

He did. He was the number cruncher. He pretty much told them they were insane.

They didn't listen. He was right. OMB doesn't make policy and he resigned over concern about deficit spending after being spanked about some overly candid interviews in the Atlantic Monthly.

Truthiness is betrayal.

 

OC Sure's picture

 

 

Good for him. /kudos

 

"Piety requires that we honor the truth above our friends."  ~ Aristotle

stant's picture

That's exactly how I see it Hb

JRobby's picture

"The big question now is what will take its place?"

Chaos, anarchy followed by regional power struggles. A list of the war criminals needs to be created, perpetrators hunted down, tried and executed.

War crimes MUST include financial crimes. War is in the board rooms, the CEO suites, cyberspace as well as the battle fields.

bunnyswanson's picture

Their deck of cards:  https://www.youtube.com/watch?v=AZZCrNTJwlM (Illustration of cards depicting events, similar to tarot cards, 3 min).  Long.Strange.Ride

JoeySandwiches's picture

After SHTF, before the internet gets shut down, Tyler needs to set up a 'to-kill list' and then a version that could be made into a nice, shiny flyer.

We can't afford to forget who the elites were that destroyed us.

Hope Copy's picture

Who says thet the US Fed can't fail?  It's private and at anytime can declare its self insolvent.

Milestones's picture

Those ignorant of history are doomed to repeat it's failures.     Milestones           

GRDguy's picture

Yeah, and those of us who are well-versed in history are doomed to watching them do it all over again.  Kinda like catching your young son sticking his hand in the fire to see if it's really hot; even though you had warned him not to do that, over and over again.  Sigh.

TeethVillage88s's picture

Yes, thanks. The British & European Bankers will recreate new US Bubbles if they want and as possible in view of the circumstances...

Or they will enjoy investment & profit from Investment in many Developing countries in Latin America, Africa, Asia, Russia, China, Oceania...

Or they will chose a new Consumer Market and Superpower to displace the USA and recreate the Development of another Frontier like America.

After all there are no capital controls to prevent bankers from capital flight, excessive administrative costs, or excessive compensation at the expense of Stocks or Bonds investors.

STP's picture

The British, Europeans (and American) Bankers will find themselves, already squeezed out by the Chinese.   The Chinese are ALREADY doing this, and not having to hit those countries with a big stick, while doing it.

GMadScientist's picture

Again, Cosmos, you're really too fucking stupid to be posting here. You need to spend a few years reading.

The Chinese aren't setting up 'infrastructure' for anything other than accumulating more resources; the exact same thing the US has done for decades with military bases, but with only the affectations of the WTO to stop them from monopolizing those things that will maintain their superpower status once they ascend. That's it. There's no more altruism in what they're doing than Shell arming kids to keep their oil flowing elsewhere in Africa. Speaking of, most of the countries the Chinese are setting up shop within were conquered by Europeans a century ago, so lack of American involvement is not exactly meaningful, and most of what the Chinese have purchased (Rio, half of fucking Australia...) was to ease pressure on indebted western governments. They're just making sure their damn bonds don't fold from counterparty risk and that trade in trinkets will continue to flow to idiots like you.

 

Firepower's picture

Very true. What's ASTOUNDING is how long it keeps going:

Plain Answers: The Mortgage Elite (mildly NSFW) http://wp.me/p2kmGE-1AU

Stained Class's picture

Excellent question about Reagan, he'd be mortified...at what Greenspan did.   See 11:00 in.

David, call it like it is: The Central Banks have CORNERED THE BOND MARKETS!

Meremortal's picture

Stockman is right except for his zero sum implication regarding wealth. 

Kirk2NCC1701's picture

And except for his omission that the staging for the Coup started in 1980, when Ronnie Raygun became the POTUS, GHW Bush became the VP, and Cheney & Rumsfeld were in the Administration, alongside "St. Stockman". 

essence's picture

Stockman quit (or was-shown-the-door?)  the Reagan administration when the numbers began to not add up.

He's a numbers type of guy, or I should say was because it is evident that the years have seasoned him and he is far more cognizant of how things tie together and how we've all (well, at least the 99.99% of us) have been manipulated.

(history lesson to those readers not of vintage age: Their was this notion then that tax cuts would encourage business activity that would more than make up for the short-term loss of tax revenue (all well & good, only the MIC went on a spending spree and the end result was MOAR gov borrowing). 

For what it's worth Kirk, I am in agreement that the neo-cons and fascists got a real toe-hold and traction in the Reagan administration. Despite his good intentions, Ronnie wasn't the sharpest knife in the drawer to begin with, and in retrospect, it is evident that Alzheimer's was already affecting him as early as the latter part of his 2nd administration. The neo-cons took his 'keep-America-strong' attitude, hijacked it and milked it for all they could in pursuit of their own agenda.

Getting back to present day Stockman, while I don't agree with him on some matters (e.g.  Social Security being scrapped without at least partial reimbursement to it's under 62 victims who spent their careers forced to pay into it),     I would say your characterization of him isn't fair.

Besides, he writes one hell of a good article consistently;  he knows facts & figures like few others.

TheReplacement's picture

Mind control works best against the youth.  Someone with Alzheimer's can certainly be childlike and the fact they genuinely cannot remember things must have been a boon.

shovelhead's picture

Good take.

No discussion of the Reagan years can be complete without Cap Weinberger's out of control military spending. Unfortunately, Reagan was starstruck with the JCS and demurred to them on most military matters.

mortem-tyrannus's picture

Change your avatar you spinless chickenshit bloviating piss pot. Captain Kirk is pretty damn cool, but even he is not worthy to be kicked in the face by the boots Ronald Reagan wore to muck out his horse stalls. You aren't worthy to bear the Kirk's image.

Dutch Regan was the greatest president this country every had with exception of George Washington who alone among all men on earth, refused the temptation to become a King.

The only fucking reason anyone employs your shit sorry ass (and mine) today is that Ronald Reagan rebooted the second shittiest economy this country has ever seen that he inherited from LBJ, Nixon and that flying, flabberghasting mental halfwit Jimmy Carter. Don't even get me started on the new dealers. God forsaken liberal progressive flesh eating zombie whores.

What has Barack Obama done in the last six years?

1 - Stick his dick up Reggie's ass to kick of his world apology tour when he should have been acting like the Commander in Fucking Chief and leading the free world in the overthrowing of terrorist regimes worldwide.

2 - Play golf twice a day, every day, with a bunch of goddamn apes who then stuck their dick up his and Reggie's ass while he should have been attending Cabinet meetings on how Ronald Reagan rebooted the 1981 economy.

3 - Accept a Nobel Peace Prize he did nothing to earn but was given anyway by the greatest band of ass licking toadies Europe has ever seen. And that is really saying something don't you think?

4 - Run up eight or ten trillon dollars of additional debt that will either need to be defaulted on, inflated away or burned off slowly through years of tortuously slow growth.

5 - Claim to heal the Earth while flying around in a big jet polluting the environment all to give blowjobs for political donations.

I get that queers are taking over the earth, but fuck me freddie, this is getting a little out of hand don't you think?

Does anyone else long for the days when men were men? And speaking of real fucking men, Dick Cheney has inspired more fear in the hearts of powerful evil men and pitiful little fuckwit dick swallowers like you than any American has done before or since.

I have a link to an image I think is a little more appropos for a poltroon like you:

http://girlsjustwanna.wpengine.netdna-cdn.com/wp-content/uploads/2012/10...

But then again, I feel like I am doing a disservice to the Cowardly Lion.

mortem-tyrannus's picture

Yeah. I probably shouldn't be allowed to post until *after* I have taken my meds.

I will get my thorazine prescription renewed...

Chuck Knoblauch's picture

The US is run by bull queers.

America celebrates bull queer day tomorrow.

palmereldritch's picture

LOL

OK Viewers.  Get used to this green hound's tooth pattern.  There's only like 8 hours ahead.  Good luck not not watching all of it once you've started...

https://www.youtube.com/watch?v=MQNitCNycKQ

mortem-tyrannus's picture

Come on Chuck. Would you really rather be ruled by Eurofaries?

"Now little chucky chuck, make sure you pee sitting down so you don't splash anywhere and make nanny Merkle very cross."

I for one fear our military like I fear nothing else on God's green earth.

For every 10 pathetic unemployable fat ass desk jockeys too fucking dumb to find their dick with either hand, there is one true warrior, born in sin, who lives on nothing but red raw meat.

God help anyone who has to face those bastards down on the field of battle.

Happy Fucking Memorial Day!