Posted on 03/31/2013 2:58:25 PM PDT by blam
David Stockman Writes Huge Unhinged Screed About How America Is Doomed And How You Should Get Out Of The Market NOW
Joe Weisenthal
March 31, 2013, 1:05 PM
Former Reagan budget director David Stockman has a new book coming out on Tuesday, and he's warming up the public with a massive piece in today's New York Times titled Sundown in America, which basically says the future of America bleak because of massive government debts, crony capitalism, bailouts, megabanks, the removal of the gold standard, and even green energy.
The piece can truly be characterized as Hard Money Buzzword Bingo, as Stockman tries to get in as many scare lines as possible.
Check out this one sentence where he talks about bubbles, Wall Street casinos, the Crucifixion of savers, commodities Main Street, a "Great Deformation", and a rogue central bank:
Instead of moderation, what’s at hand is a Great Deformation, arising from a rogue central bank that has abetted the Wall Street casino, crucified savers on a cross of zero interest rates and fueled a global commodity bubble that erodes Main Street living standards through rising food and energy prices — a form of inflation that the Fed fecklessly disregards in calculating inflation.
It just goes on and on like this, but his final suggestion is to run for the hills:
The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest bubble pops, there will be nothing to stop the collapse.
(snip)
(Excerpt) Read more at businessinsider.com ...
The sky is falling, live underground.
Not much has been fixed since 2008, and the debt is getting ever bigger, but in the short to medium term, the American markets are going up strongly. The main reason is that we are not Europe, Japan, or China, and money has to go somewhere, so we are getting an influx of cash from outside. Would you rather put your money in the US stock market, or a Cyprus bank right now?
The argument against Stockman’s warning seems to amount to nothing but, “So far, so good.”
Stockman seems to have all the right enemies.
We have rogue banks, a rogue federal reserve, a rogue IMF, and a rogue government.
What could possibly go wrong?
Most of the world's currencies are hurting. From sovereign debt accumulation to uncertainty. Which country will be the next to steal citizens bank accounts?
Believe it or not, the U.S. dollar is doing well comparatively speaking. Even with Bernake and QE infinity.
Where else would you put your money now if you lived in Cyprus, or Greece...Spain or Portugal?
As long as interest rats remain low, and the Fed keeps pumping $85 billion a month in new, nicely printed or digitized currency, we'll be all right.
Look at the Stock Market. P/E ratios, new capitalization, IPOs, etc. are not supporting this market. The Fed is.
Bumpy ride ahead...
5.56mm
Stockman blames only Republicans going back to Reagan. He was a weasel then and he’s a weasel now.
Weisenthal and The Business Insider are toadies for Barry and Obamanomics. It’s a real hoot seeing the chicken little scaremongers of the left accusing someone else of scaremongering. LOL! They’re all a bunch of doofus clowns.
Ironically, Stockman may well be understating the real severity of the economic problems we face. The national debt is not $17 trillion, but more like something close to $100 trillion — a truely crushing debt that can never be repaid. And the Fed has amassed an astonishing $4 trillion balance sheet that it will have to unwind at some point.
Our era of printed prosperity is not going to end well.
Rats!
5.56mm
An experience contrarian might make a darn good case to invest in the Cyprus stock market (if such a thing exists). Only one direction to go!
5.56mm
The main reason markets are going up is helecopter Ben throwing paper money out the window and zero interest.
At some point, but not just yet. Someday I will be heavily invested in Europe, but they have a long ways to go.
I was 12 when they introduced the clad coins. I have been expecting a hyper-inflationary crash ever since.
” the American markets are going up strongly.”
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You are being sucker punched, as the fat cats keep doing the pump and dump.
America is going down hard and rapidly.
“The argument against Stockman’s warning seems to amount to nothing but, “So far, so good.””
Well stated. It reminds me of my wife’s evacuation plan when Hurricane Rita was approaching. I was at my kitchen table with a bunch of maps open, plotting a way out of the Houston that didn’t involve freeways and barely involved state highways. She told me her plan was to simply hop on the freeway, since the freeways aren’t usually too crowded. I explained to her that it wouldn’t be the case when 5 million people are leaving at the same time and there are a total of 4 freeway lanes available that go North and West out of the city. Most people ended up like her, lucky to go 50 miles in 36 hours (and running out of has at that). We made it to San Antonio (220 miles) using my maps in 8 hours (and my wife was still complaining about the traffic...LOL).
Then you have the bunch that laughs at preppers, because they assume Walmart and Sams (and others) will somehow maintain their food stock after the trucks stop rolling (for whatever reason). They’ll just stock up then, why do it before things go bad?
So here...we have low inflation, manageable unemployment, so what on earth can go wrong. They are unable to understand that TEN PERCENT of our entire GNP (at least) is PRINTED MONEY. And at some point the creditors will have enough of that. Think about it. If you make 50k - already have another 50k in credit card debt, and are adding to that number at 5k per year - how long will the credit card companies keep giving you more credit. Not forever, that is for sure. The dumbing down of math has worked...
“...has book comming out.”
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