David Stockman: "The Jig Is Up: America’s Voters Just Fired Their Ruling Elites"

Tyler Durden's picture

Submitted by David Stockman

America’s voters fired their ruling elites last night. After 30 years of arrogant misrule and wantonly planting the seeds of economic and financial ruin throughout Flyover America, the Wall Street/Washington establishment and its mainstream media tools have been repudiated like never before in modern history.

During the course of the past year, upwards of 70 million citizens—–59 million for Trump and 13 million for Bernie Sanders—-have voted for dramatic change. That is, for an end to pointless and failed wars and interventions abroad and a bubble-based economic policy at home. The latter showered Wall Street and the bicoastal elites with vast financial windfalls—-even as it left 90% of Flyover America behind, where households struggled with stagnant wages, vanishing jobs, soaring health costs, shrinking living standards and diminishing hope for the future.

The voters also said in no uncertain terms that they are fed-up with a “rigged” system that has one set of rules for establishment insiders and another for everyone else. In essence, that’s what servergate, the Clinton Foundation pay-to-play scandals and the trove of Wikileaks DNC/Podesta hacks was all about.

Indeed, in his brawling style, the Donald in effect convinced a huge slice of the electorate that the Clintons amounted to America’s leading crime family. And while he may have exaggerated the extent of their personal crimes and misdemeanors, the latter functioned as a proxy for the beltway racketeering that has become the modus operandi of the Imperial City.

Stated differently, the people did connect the dots. There is a straight line from repeal of Glass-Steagall by the Rubin-Clinton democrats in the late 1990s through the resounding repudiations of the Clintons last night.

This string includes the M&A roll-up of the giant Wall Street banks after 1998; the subprime mortgage scams, housing booms and subsequent crash during the next decade; the panicked multi-trillion bailouts of the Wall Street gambling houses in the fall of 2008 and the lunatic spree of central bank money pumping that followed; the soaring stock market fueled by the Fed’s free money that arose therefrom; and the egregious global fund-raising and shakedowns of the Clinton Foundation and personal wealth accumulations by the Clinton’s personally, capped by Hillary’s notorious $250,000 off-the-record speeches to Goldman Sachs.

What happened was that during the eight Obama years, Washington essentially borrowed $10 trillion, or nearly as much as the first 43 presidents did over 220 years, while the Fed expanded its balance sheet by 5X more than had happened during its first 94 years of existence.

This feckless resort to monumental public borrowing and money printing did generate a faux prosperity in the Imperial City and a $25 trillion gain in financial wealth among the gambling and financial asset owing classes at the top of the economic ladder. But the bicoastal elites in Washington, Wall Street and Silicon Valley and its environs, luxuriating in their good fortune, essentially assumed that all was fixed and all was forgotten from the dark days of the financial crisis.

Not at all. The rubes remembered. No one in America supported the Wall Street bailouts except a few ten-thousands Wall Street operators, hedge funds and other gamblers; and the politicians and Keynesian policy apparatchiks who saw it as a new route to power and spoils.

What happened last night—especially in the rust belt precincts where 70,000 factories have already closed and 6 million breadwinner jobs have disappeared—–was nothing less than the third vote on TARP. Whereas the cowardly House GOP had capitulated to Wall Street and their spineless leaders on the second vote in late September 2008, the rank and file voters of Flyover America last night proclaimed  loudly that it had not been done with their leave. Not at all.

The resentments and anger on main street has not only been simmering for years; its inhabitants have also figured out that it was on their backs that Wall Street was rehabilitated and then inflated to hideous valuations that bear no relationship to the faltering economy of main street.

Indeed, after getting a bailout they hated, main street then got a rogue central bank run by clueless Keynesian academics who deliberatively and callously savaged savers and retirees; and also tried purposefully to trash worker wages with even more inflation than what was already destroying their jobs and shrinking the purchasing power of their paychecks.

We are now more convinced than ever that 2% inflation targeting is the greatest governmental assault on the working classes known to modern history. And the working classes of Flyover America—-whose jobs are most exposed to the China Price on goods and the India Price on services—-finally said they are not going to take it any longer.

That’s a start, but it’s way too late for orderly reform and incremental change. The essence of last night’s thunderbolt—-Brexit 2.0 on steroids—–is that the ruinous rule of the existing Wall Street/Washington  establishment has been repudiated and ended.

But there is nothing to replace it. Donald Trump has no coherent program at all—-just a talent for name-checking the symptoms and rubbing them raw.

So as I said on Fox Business last night at about 11:30 PM, when I called the election for Trump long before the networks could bring themselves to face the truth, the election is over and the nation’s long nightmare has just begun.

For months and years to come, the Imperial City will be ungovernable and the nation will be racked with fiscal, financial, political and even constitutional crisis. By kicking the can in a ruinous direction for decades, America implicitly opted eventually for the bleeding cure.

To wit, the giant stock market bubble will now crash. The stock-price obsessed C-suites of corporate America will now panic and begin pitching inventory and workers overboard. We will be in an official recession within 6 months. The Federal budget will plunge back into trillion dollar annual deficits very soon.

Accordingly, Washington will descend into permanent warfare over the debt ceiling and an exploding $20 trillion+ public debt. Any notion of a Trump economic revival program—-even if it could now be confected—will be stillborn in the financial and fiscal chaos ahead.

And most important of all, the almighty Fed will be stranded high and dry—-out of dry powder and under political attack like never before from angry politicians and citizens alike.

The jig is up.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Duc888's picture



Not really, the "ruling Elites" are the 95% of the GOP who did not support Trump.  The "ruling elites" are the shitbag Democrats.  They're still in DC.

Cognitive Dissonance's picture

Father: "What do you do when there's no way out?"

Son: "Find a way to dig in even deeper."

This is precisely what the elites have done.


Fuck the fearmongers. Send them all with the Elites and the Fed to Zimbabwe for a taste of their own medicine, followed by a gas filled tire necklace celebration.

Mr. Universe's picture

I'm not sure what to make of the fact that Trump is going to rely on GOP insiders from Bush/Romney for his transistion team. WTF? These pukes are the same old same old. It's like he handed the keys to the Maybach and a bottle of Wild Turkey to Christie and expecting a good outcome. 

swmnguy's picture

No kidding.  Why are the only two names for the financial posts both Goldman Sachs guys?  Why are we hearing the names Christie, Giuliani, Gingrich, Jeff Sessions, and saints preserve us all, John Bolton and Michael Flynn?  Those guys aren't even the Bush/Romney guys; they're the guys who were too incompetent, crazy and corrupt for that crew.

Odin McHaggis's picture

This isn't news. Anyone who thinks Trump will effect anthing positively is delusional. And Stockman is correct, the economy is hopelessly fucked.

fx's picture

Well, let's see. He has already staged lots of surprises. Maybe there will be more. As for the stockmarket, there is no recession on the horizon right now, but a ton of fiscal spending that will at least temporarily push economic growwth higher and with it corporate profits and stock prices. The crash will eventually come but it is hybris and silly to pretend to know when it will happen. It may not happen for another 2-3 years? There will be a new administration that gets things done, for the better or worse and while watching carefully I give Trump the benefit of the doubt. But of course, you and Stockman are free to go out hiding in a cave or someplace. Could be an unpleasant, long wait.

weburke's picture

oh david, toss the broad brush away

Infocat's picture

I wish it were "Americas Voters" but in reality it were overwhelmingly almost only European Americans. http://www.truthjustice.net/politics/now-i-am-become-president-leader-of...

new game's picture

all i can say (again) is that 1 REAL solution creates a multitude of new problems, like cutting any of the budget. take any problem and start thinking of the outcome (s) and the real consequence to humans and how popular that will be. WE ARE FUCKED BEYOND HOPE AND CHANGE. we are in a situation that requires anplanned implosion and rebuild. hmmm, sounds like war....

Déjà view's picture

ATTENTION...all Bilderberg Members prepare for an upcoming EMS meeting...

Mentaliusanything's picture

And as the markets rise on euphoria they are selling. look at APPL in the Dow and the Naz generally. They fucking know its a bubble and this party is going to have a hangover so they leave the party early.

Oh and "who" is the Boss does not matter - its the golden rule "he who has the Gold makes the rules"

BabaLooey's picture

Ah yes..."The International". ............scene with the banker fucker and his boy

....good comment Cog.

Excellent analogy

localsavage's picture

I disagree that Trump exagerated the Clinton's crimes.  If anything, he hit on just the tip of the iceberg.

Paul Kersey's picture

How did the Clintons get to be worth over $180 million? "Behind every great fortune is a great crime." Honoré de Balzac

kwc's picture

Absolutely!  Misdemeanors?  It was an international crime syndicate. Stockman senile or what?

auricle's picture

The establisment will try to bend and break him. Trump will get the same email Barack got from Citi Bank on who they want in his cabinet. If he plays ball then all is well, if not then all that is left for the establisment is to leave a steaming pile of shit in the financial sandbox for Trump. 

sleigher's picture

Good he can print treasury notes and start paying down the debt.  Some useless paper in exchange for some useless paper.

webmatex's picture

In this situation a business guy eying a future bankrupty of his beloved country would probably:

1) Find an interested "partner" and make a motherfuker trade deal while bringing peace to two war zones.

Tibetan bells, summer of love, etc.

2) Seek assets (gold, silver, hotels, casinos) to guard against future national monetary instability.

Mogambo Heaven!

The president SHALL clause - the one that lives at the North Pole and got Kennedy shot.

What has he got to lose?

He did just defy and threaten the Rothschild backed Clintonista Regimes UR Future is US, and a lot of other shit that took a lot of love, time, and money to build (globalism, NAFTA, TPP Soros Bush).

Willfully! Lol.

How many nail guns can they use?

Where is the red line here?

Don and Vlad are probably defending themselves from the same conspiracy theory villains who started the party at Plaza but it sure aint Alex Jones.

Rock on Trump.





s2man's picture

'if not then all that is left for the establisment is to leave a steaming pile of shit in the financial sandbox for Trump'

yep. This kind of article just makes me laugh.   'The Elites/bankers/globalist/NWO are finished due to Brexit and Trump'.  Right. Tell me another one!   They can pull the plug on the global,  interwoven,  bankrupt financial system whenever they wish.   And they will. I had hoped it would happen on Barry' s watch...

I feel sorry for Donald,  for the shit he is going to have to face and take the blame for. Heck,  I feel sorry for all of us when it happens.   Prepare accordingly.

ussa's picture

Right on...Ryan and MCConnell are going to slam through more laws that hit people and small businesses. Citi and the other crew from across the pond will layer their people six deep. Trump is just another feel good bait and switch.

new game's picture

zh ers, face one fact; don can do very little in the big scheme of this mess. and he is going up against 1 thousand of the most psychopathic wealthy fucks in the world. repeal trade treaties crafted by these fucks. yea fucking right s/. get a clue and drop the hope and keep reading zh. vilolence a coming, many shapes and forms...

logicalman's picture

Bill Hicks on the presidency... among other things.


RaceToTheBottom's picture

That is my big fear.  For me I will be watching the number and levels of WS banksters in both the team and advisers...

I believe Trump will get bored with the mundane country stuff that goes with being a President, and I am not impressed with any of the VPs out there. 

Plus at the base of Trumps ego is to be liked by TPTB, which in the US are Banksters....   

VD's picture

stockman says "sell everything" couple of days ago, now he says this, said to short amzn 2 quarters ago -- hard to listen to him....


edit: so in the above says market down thousands of points over next couple of days........his prognosticating is truly abhorrent....hope he's not trading any of his hypotheses...

Paul Kersey's picture

The ruling elites are the 20 wealthiest Americans who have more wealth than 162 million of their fellow Americans. This is a plutocracy, and the plutocrats have their wealth well protected. Before the election, 75% of Americans didn't have the money to buy a new set of tires, and that is not going to change post election.

Money rules, and those who have no money are ruled by those that do. Rich folks are just not about bringing other rich folks to justice, Poor folks, like the 69% of Americans who have less than $1000 in savings, don't have the money to be bringing anybody to justice.

Life, however, will change for some folks. Megyn Kelly, for instance, who was out shopping for a more lucrative TV gig, will wish she never left FOX. Hillary Clinton now has a better chance of landing in the "big house" than in the White House. Debbie Wasserman Schultz won't be getting those high paying speaking engagements, after all. And the only movement Bernie Sanders will have now, will be his bowel movement, and even that will take a special engineering.

As for me, I've still got my '97 F 150 pickup, my old $700 jon boat and my fishing poles, so life for me will go on pretty much the way it has for the last few years. I'm okay with that.

Diatom's picture

'96 Civic coupe (about 1500 euro) and '98 VFR 800 (3000 euro)...

20 years old and they simply dont die...


Holy hand grenade of Antioch's picture
Holy hand grenade of Antioch (not verified) Diatom Nov 9, 2016 11:19 PM

'91 F-150 XLT Lariat ~ still runs great

shining one's picture

Wrong again. Anglo/Jewish elite banksters are the ruling elites.

Cognitive Dissonance's picture

The force illusion is strong in this one.

The ruling elite just cooked up extra innings in this ball game.

<When the con is running out of steam, what does the con man do? Manufacture more confidence.>

RafterManFMJ's picture

Good think I've still got popcorn!!!

Ordered a new Glock 9 with Trijicon RMR last week ... on the credit card.

Good luck getting that back, Mr. Banker!

conraddobler's picture

Yep have to take it up a notch.

America was great back when the native American's were the only ones here.  In comparison to that in terms of just human happiness we have gone backwards.

Yet we must always go forwards to be more miserable.

And thus your moniker is sublimely completed into the sign for infinity.

Boomberg's picture

I picked the wrong decade to stop smoking.

logicalman's picture

Depends what you stopped smoking.

Implied Violins's picture

I'm 53 and I just started (American Spirits).

I mean, what the fuck, by the time I get cancer I'll be dead.

Boris Badenov's picture


Make your website FREE not $29/month.

I bought 6 of your DEFORMATION books, and 1 of your new Kindle. 

I passed them around.

You think your NEW thoughts & words are more valuable than your past?


You think I read the post above? Not a word. 

Sukkit, Trabeck, er, Stock-douche. Assholio...

Sorry, Dave, I'm probably the only one here who has read every word of your 700 page doorstopper.


hettygreen's picture

Stockman is the new Gartman. Whatever he predicts expect the polar opposite. 

Sadly another economic ultramaroon it seems.

hongdo's picture

I agree that Stockman pulled an "I'm now a big-time elite" when he went to a pay for play website.  I used to check it regularly but do not think it is actionable information or worth paying for.  Most of his data is available elsewhere and enough of his articles show up here for free.  If I were to pay for a site it would be to re-subscribe to Jim Willie's Golden Jackass - much more entertaining.

cowdiddly's picture

Well you challenge me to and I read most of it. And I stayed at a Holiday Inn last night.

I thought it was some pretty good stuff actually.

NewHugh's picture

"The jig is up." and The Jig is OUT!!!

Directdem's picture

If there were a wiser way to proceed forward, Mr. Stockman, it would behoove you to show us the way. Surely, one way is not the same as another? Reach out to the Trump camp and offer them your wisdom, rather than your pessimism.

King Tut's picture
King Tut (not verified) Nov 9, 2016 8:13 PM

Who runs Barter Town? I mean Wall St

dlfield's picture

Let's not get overly optimistic here...

BullyBearish's picture

Senor Trump, Oro o Plomo?

Twatter's picture

Warren Buffet lost His jig in this election too; along with the Bush's and Clinton's.

otschelnik's picture

Yes Twatter I hadn't thought of that! If the Transcanada pipeline will be put on a fast track to construction, Warren's BNSF rail road loses the monopoly for delivering that Alberta oil.



therover's picture

"So your saying there's still a chance !"