Red Pill Sentinel
  • Home
  • About
  • Contact

"The Train Wreck Is Coming," David Stockman Warns, "All Hell Will Break Loose"/ Zerohedge

8/10/2014

0 Comments

 
Submitted by David Stockman via Contra Corner blog,

Transcript of David Stockman Interview on King World News

Eric King:  “David, the man who is counsel to big money around the world, Michael Belkin, just spoke with KWN and issued a dire warning for the financial markets.  I just wondered how you see things at this point with the Dow recently tumbling and everything that is happening across the globe?  What should we expect?”

Stockman:  “Well, the watchword at this point is stay out of harm’s way.  We are headed into a perfect storm of policy failures.  This is not simply a failure by the Fed, which has inflated this massive bubble and painted itself into a corner with no clue how to get out, but we are also seeing an absolute failure of American world dominance….

Our foreign policy is collapsing everywhere and yet the Washington war party keeps wanting to do more of the same.  This confrontation with Putin is utterly out of hand and unnecessary.  Now we have a trade war going that is going to ricochet through an already fragile European economy.

We hear today that Obama is considering going back into Iraq.  What is he thinking?  If you layer that on top of an already fragile financial bubble that is waiting to burst, I think we are in a zone of extreme danger.  It’s hard to predict whether this will be the big, destructive bear market that inevitably has to come, or simply just another dip that encourages the robots and the trained seals on Wall Street to buy for another move higher.  But one of these times we are going to have a big failure and I don’t think it’s too far down the road.

If you look at the stock market it has gone nearly straight up for the last 64 months.  If you look at the chart of the S&P 500 you can see that year after year the dips get shallower and more infrequent and that is not a healthy chart.  That is a sign of a market that is not discounting the actual real world future, but simply trading the word clouds and the liquidity that is being injected by not only our central bank, but central banks around the world.

The difficulty is that I don’t believe this central bank ‘act’ can be kept up.  We have had such tremendous expansions of balance sheets that even the central bankers are now beginning to second guess themselves, become divided among themselves, and begin to worry about how they get out of the corner they have painted themselves into.

So those are the factors that will ultimately cause a major collapse.  It’s just a question of when the black swan comes flying in, or when the confidence in this whole central banking illusion finally breaks down in the markets.”

http://bit.ly/1nGa0qu
0 Comments



Leave a Reply.

    Writers

    Yvonne Burton...there is no collection of writers...it's just me.

    ​And then there were two....meet my brother Lewis

    Picture
    Picture

    Archives

    August 2021
    April 2021
    December 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    September 2019
    August 2019
    July 2019
    May 2019
    April 2019
    March 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014

    Alternative Media
    Ace of Spades
    Gateway Pundit
    Instapundit
    Powerline
    The Conservative Treehouse
    Zerohedge

    RSS Feed

Proudly powered by Weebly