David Stockman: Central Bank Era of Bubble Finance Leading to a Dead End
David Stockman, former White House Budget Director in the Reagan Administration and best-selling author, is interviewed by top notch reporter, Greg Hunter. While on USAWatchdog he speaks on his outlook of the deep financial trouble America continues to embark on, the Central Bank Era and the 2016 presidential election conditions in his new book, “TRUMPED!”
Stockman explains his take on the Central Bank era saying, “I think we are on the very edge, but what is different this time and makes it scarier… is I believe the central banks that ruled the roost have gone from one extreme to the next and done unfathomable things like negative interest rates on $13 trillion of bonds around the world, monetization of the debt, and bond purchases that are staggering such as $90 billion a month in Europe. . . . So, this time, as the phrase goes, they went all in. They have violated every principle of sound money and sustainable finance that mankind has ever learned about over many centuries. They have taken us to the edge, but they are out of dry powder. I think it’s pretty obvious that they can’t go any deeper with subzero interest rates, or negative interest rates… If they tried this in the United States, I think there would be a huge political uprising… They are out of dry powder and out of tools, and therefore, the financial markets of the world are more vulnerable, maybe even more so than in 1929. You are talking about a bond bubble like never before imagined or conceived, and the stock market is the same way as well as derivatives.”
Stockman points out in “TRUMPED!” that over the last 30 years in America “The top 1%’s wealth has grown by 300%, and the top “Forbes 400” wealthiest people in the world had their wealth grow by a staggering 1,000%.” Meanwhile, the “bottom 90% of Americans have seen their wealth steadily deteriorate.” Stockman goes on to say, “This has benefited a very narrow slice of the population. You can call it the 1% or the bicoastal elites who own most of the financial assets.”
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