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"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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Sun, 05/24/2015 - 17:49 | 6127694 MrBoompi
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Of course GOPNEWS couldn't dare mention the fact Republicans are well paid by the bankers to protect them and make sure the government remains powerless to do anything about the Fed or Wall St.

Sun, 05/24/2015 - 18:22 | 6127791 Ckierst1
Ckierst1's picture

Or the Democrats for that matter.

Sun, 05/24/2015 - 22:53 | 6128386 Duc888
Duc888's picture

 

 

MrBoompi: Of course GOPNEWS couldn't dare mention the fact Republicans are well paid by the bankers to protect them and make sure the government remains powerless to do anything about the Fed or Wall St.

 

Are you really that ignorant?

  Seriously?

 

"My administration is the only thing between you and the pitchforks," Barack Obama told the CEOs of the world's most powerful financial institutions on March 27, when they cited competition for talent in an international market as justification for paying higher salaries to their employees."

 

http://thepeoplescube.com/current-truth/obama-the-pitchfork-operator-rem...

 

Mon, 05/25/2015 - 12:10 | 6129430 MagicMoney
MagicMoney's picture

Democrats don't seem to register the Fed on their radar and how convenient is that. The increased income inequality is attributable to the Federal Reserve. They don't criticize the Fed or even acknowledge there is inflation. Why, because they use the Federal Reserve creating income inequality for political points with majority of ignorant public blaming all rich people, and targeting employers for all their ills. Politicians want a active Fed to create inflation, then they turn around and blame the scapegoat, the employer, or the rich person.

 

You obviously fall for the same fraud. A democrat can pull a chair underneath you, and they will tell you, it was that rich guy there that did it, you'lll believe them. One of the definitions of a sucker is a gullible or easily deceived person. That sir is you...

 

Neither Elizabeth Warren, or Bernie Sanders, much less Obama criticized Ben Bernanke, or Janet Yellen. I wonder why? That alone is a huge red flag. The Fed is the arm of the government. When a president wants cheap money policy, they usually get it these days. Fed is not as independent as we think, it has become politicized and hijacked by corruption, which is exactly what Andrew Jackson knew would happen.

 

Majority of politicians don't even acknowledge there is inflation. They won't even answer your question. Obama and Romney were asked that question and didn't even answer it during a debate. Hmm....Wonder why? The whole political spectrum that exists in the US government, are corrupted by the power of what the Fed can do. This includes very much democrats. Your idea of democrat is just an illussion. Carefully crafted perception and pack of feints. Very, very, very few politicians admitt there is inflation. Only a ex-congressman like Ron Paul was vocal about it.

Sun, 05/24/2015 - 21:05 | 6128161 pndr4495
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WHERE IS BORIS ALOTOVKRAP ?

Sun, 05/24/2015 - 23:03 | 6128410 I Write Code
I Write Code's picture

The printing in modest amounts may be sustainable - it has been for seven years now.  It is our economy now, like it or love it.  Stockman is spitting into the wind.  Come on Dave, open your eyes, we need your perspective but not if you're just going to shout at the Fed to get off your lawn.

Sun, 05/24/2015 - 23:44 | 6128499 RaceToTheBottom
RaceToTheBottom's picture

The Austrian system views the world monetary system like an unmodified river system:

Nowadays, river systems have dams (old and new), irrigation systems, filteration systems, flood planes, etc.

There are no old unmodified river systems left.  There are no unmodified economies left. 

The FEDs of the world have created dams and modified every river system in the world.  They continue to modify them via debased currencies, debased Accounting systems, crony capitalistic modifications, even wars and agreements with dictators.

 

Eventually the river system will revert back to its early historical norm.  The dams will eventually fail, over hundreds if not thousands of years.  But they hope that a minimal maintenance to the adjustments to the river system will keep the dams and modifications from failing...

Same with their duct taped economic modifications....

Mon, 05/25/2015 - 00:22 | 6128562 I Write Code
I Write Code's picture

And the Fed is makin' it rain?

Mon, 05/25/2015 - 00:35 | 6128579 TeethVillage88s
TeethVillage88s's picture

Does this look like sensible FED Policy or Economic Policy... from 2002 forward... or does it look like a Felony Crime for which many should be held accountable for Covering-Up?

I'm just saying... It didn't start in 2008 with a surprise from Sub-prime, the Sub-prime top was Oct 2005... and It didn't start with a Credit bubble in 2006 or 2007, the Bubble was obvious and probably supported with Bribes in 2002.

Bank Private Credit to GDP for United States
2011: 55.47615 Percent (Data spans from 1961 to 2011, Bubble is clear in 2003)
http://research.stlouisfed.org/fred2/series/DDDI01USA156NWDB

- Global Crime Scene deserves Voice from those hurt Globally, those that were damaged should have had their day in Court.

Mon, 05/25/2015 - 11:55 | 6129405 MagicMoney
MagicMoney's picture

Started way before that buddy. Fed been at this game for over 30 years. That's why you have a deformation of capitalism. How do consumers enjoy such cheap credit simply pulling future sales into present sales and acquire such large debt loads on dubious income?  It's all printed money. Credit out of thin air. The amount of debts that exist today in ratio to just about anything, GDP or otherwise, dwarfs it. It's cowboy central banks run amok.

Sun, 05/24/2015 - 23:26 | 6128462 Crusader75
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This guy should let Stockman finish a sentence once in awhile.

Sun, 05/24/2015 - 23:31 | 6128472 Atomizer
Atomizer's picture

Stockman, stop worrying. Allow themselves to commit the crime first. 

Do you understand? 

Sun, 05/24/2015 - 23:51 | 6128514 Super Hans
Super Hans's picture

I get to work all day tomorrow, yet I don't get time and 1/2 as it s Memorial day is not included n our officail "Kroger" days off; after 1 year of service I'm eligible for time and 1/2 pay for 5 holidays no more.

Mon, 05/25/2015 - 00:03 | 6128534 dexter_morgan
dexter_morgan's picture

We need another Bastille day

But they're marching to Bastille Day
La guillotine will claim her bloody prize
Free the dungeons of the innocent
The king will kneel and let his kingdom rise

https://www.youtube.com/watch?v=GW72Gmqjse4

Mon, 05/25/2015 - 00:44 | 6128588 mortem-tyrannus
mortem-tyrannus's picture

+1 for the Rush reference. Arguably the greatest musical band in history.

Mon, 05/25/2015 - 00:16 | 6128555 TrustbutVerify
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The changes that are required to bring us to normalcy will be extremely painful and close to indistinguishable from the inevitable collapse the Fed has been trying to put off.  Unfortunately, as time goes on the debacle will be larger.  If we had just had the balls to let it play out in 2008-9.  We'd be so over it now (assuming we got our drunken sailor spending under control).   

Mon, 05/25/2015 - 00:30 | 6128570 ChargingHandle
ChargingHandle's picture

It worked as planned. It was drafted by the globalist to benefit the globalist. Your not in their fucking group if you visit zh.

Mon, 05/25/2015 - 01:08 | 6128620 dogismycopilot
dogismycopilot's picture

Watching that clip of Hussein Obama, I am reminded of something that all of is fail to appreciate:

THE CURRENCY OF POLITICIANS IS PERCEPTION!

They don't care aboutt economics, about offshoring, about real job growth...they only care about the PERCEPTION OF THEIR ACTIONS AS IT RELATES TO THEIR ACQUISTION OF POWER.

For the politician it is a simple formula: PERCEPTION = POWER

 

Mon, 05/25/2015 - 02:06 | 6128662 Debugas
Debugas's picture

the real question should be asked - why people accept fiat money for their work ?

Mon, 05/25/2015 - 07:05 | 6128857 A82EBA
A82EBA's picture

Why wouldn't they? How would you convince them after five years their fiat has withstood qe 1,2,3, twist, trillions in global unsterilized bond monetization. Gold's been going down for four years and their 401s are up almost 200% from the 2007 highs. From a sheep's perspective 'are you insane? What's not to love?'. So far they're ok with their reduction in standard of living, renting instead of being foreclosed on while they trade their fiat for iCrap, phones, pay-TV. Pitchforks are not on their shopping lists.

Mon, 05/25/2015 - 09:09 | 6128981 NoPension
NoPension's picture

The fact they " they" have managed to perpetuate the fraud, kick the can, keep the plates spinning, and pay for bread and circuses for the last 7 years has certainly made me look like an asshole.

Logic, Gravity, Economic Laws and Pure Logic be damned.

" They" certainly do deserve to be admired for that.

Or, we already exist in " Idiocracy, The Documentary "

Mon, 05/25/2015 - 09:28 | 6129015 A82EBA
A82EBA's picture

Me too, i just keep buying silver and keep quiet until some undeniable tangible visible consequences start materializing, then we can go back to explaining what happened and why.

Mon, 05/25/2015 - 02:28 | 6128680 Klemens
Klemens's picture
Rothschilds Make Historic Deal With US Government – It’s Over

http://beforeitsnews.com/blogging-citizen-journalism/2015/05/rothschilds...

Mon, 05/25/2015 - 08:44 | 6128945 fibonacci618
fibonacci618's picture

The process of self-destruction of democracy in the western world has just started. Internationally, it’s every nation for itself, nationally every person for him/herself. Who’s to blame? Everybody because nobody cares or is interested in being well informed, being critical, being responsible. Internet with all its information hasn’t changed anything. Like 500 years ago, it’s the same little 1% of people informing, cultivating and educating themselves and trying to protect against the same little percentage of criminals ruling the people. The US is becoming the example by excellence how a whole nation is falling prey to the stupidity of the 99% (yes, there is another 1% - 99% divide).

Mon, 05/25/2015 - 09:42 | 6129047 GMadScientist
GMadScientist's picture

Come now Mr. Stockman. Are we to pretend that you weren't instrumental in advising that fabulous Pacific Palisades actor and congress to legalize variable interest rates with the St Germain bill during your tenure in the WH? Pretending that the end game you began is someone else's fault is very disgenuous Mr. "Reagan's Brain"

"We've already established what you are, my dear. Now we're just haggling for price."

https://www.youtube.com/watch?v=BY7QDq2qrGo

Tue, 05/26/2015 - 11:14 | 6131283 Heavy
Heavy's picture

OK unless there's violence and fire and such, I would rather be warned before you rick-roll me to 12 minutes the clown channel...righty-o?

Stay off the 4chan zero hedge admins! :)

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