Voices from the Three Empty Quarters

voices-from-the-three-empty-quarters

David Stockman is a voice of reason from the Three Empty Quarters.

David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

https://en.wikipedia.org/wiki/David_Stockman

the-reagan-peak

See: https://malagabay.wordpress.com/2016/09/15/thad-beversdorf-death-of-an-economy/

See: https://malagabay.wordpress.com/2016/09/18/the-empty-quarter/

David Stockman is critical of the financial bubbles blown by the Federal Reserve.

Jesse Felder published an incisive bubble finance chart over the weekend.

It is yet another reminder that Janet Yellen and her merry band of money printers are oblivious to the dangerous speculation and valuation excesses that their policies have implanted throughout the financial system.

Relative to disposable income, the value of household financial assets now far exceeds the last two bubble peaks.

And that has happened in an economic environment which suggests just the opposite.

To wit, valuation multiples and cap rates should be falling owing the fact that the productivity and growth capacity of the US economy has been heading south ever since the turn of the century.

bubble-finance

Either way, the true extent of the bubble excess in Felder’s chart is even more extreme than pictured above.

Between 2007 and 2016, in fact, the value of household financial assets soared from $53 trillion to $72 trillion at a time when real personal income excluding transfer payments rose by only 1.2% annually.

Dangerous Bubbles In Plain Sight – David Stockman – 27 Sept 2016
http://davidstockmanscontracorner.com/dangerous-bubbles-in-plain-sight/

Criticising the Federal Reserve is strictly taboo.

Criticisms of the Federal Reserve are silenced by slur [in the mainstream] by simply labelling them as: conspiracy theories, antisemitism and nativism.

The Federal Reserve System‍ – also known as the Federal Reserve or simply the Fed‍ – is the central banking system of the United States.

It was created on December 23, 1913, with the enactment of the Federal Reserve Act in response to a series of financial panics (particularly the panic of 1907) that showed the need for central control of the monetary system if crises are to be avoided.

Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s led to the expansion of the roles and responsibilities of the Federal Reserve System.

From the beginning, the Federal Reserve has been the subject of many popular conspiracy theories, many of which are examples of antisemitism or nativism.

Some causes of these conspiracy theories are that the general public has difficulty understanding the Fed’s complex organization, which differs from that of central banks in other countries, and that the issues of central banking are too complex for the general public to understand.

https://en.wikipedia.org/wiki/Federal_Reserve_System#Criticism

Donald Trump has not [yet] been silenced by slur.

Typical politician.

All talk, no action.

Sounds good, doesn’t work.

Never going to happen.

Our country is suffering because people like Secretary Clinton have made such bad decisions in terms of our jobs and in terms of what’s going on.

Now, look, we have the worst revival of an economy since the Great Depression.

And believe me: We’re in a bubble right now.

And the only thing that looks good is the stock market, but if you raise interest rates even a little bit, that’s going to come crashing down.

We are in a big, fat, ugly bubble.

And we better be awfully careful.

And we have a Fed that’s doing political things.

This Janet Yellen of the Fed.

The Fed is doing political – by keeping the interest rates at this level.

And believe me: The day Obama goes off, and he leaves, and goes out to the golf course for the rest of his life to play golf, when they raise interest rates, you’re going to see some very bad things happen, because the Fed is not doing their job.

The Fed is being more political than Secretary Clinton.

Donald Trump – US Presidential Election Debate – 26 Sept 2016

And David Stockman has not [yet] been silenced by slur.

Trump thereby landed a direct hit on the false Wall Street/Washington postulate that the Fed has been the nation’s economic savior.

And he also elicited an almost instant defense of its destructive, anti-capitalist regime of Bubble Finance – albeit in the guise of a “fact check” by the New York Times’ Fed reporter, Benyamin Appelbaum.

To wit, after 94 months on the zero bound the Fed has executed the most massive income and wealth transfer in American history.

Upwards of $2.5 trillion has been extracted from the hides of main street savers and retirees over that eight year period (@ $300 billion per year).

All of that and then some was gifted to the banks and Wall Street speculators.

Needless to say, a wealth redistribution that monumental in scope and capricious in impact would never see the light of day among the unwashed “politicians” that Appelbaum apparently thinks are too benighted to be involved in monetary policy.

That’s because whether or not they embrace the Keynesian nostrum that saving is bad and debt is good, the nation’s politicians are smart enough to know that the sweeping fiscal transfer at the core of Fed policy would be shouted down by the voters in a thunderous chorus of denunciation and derision.

Stated differently, the politician at least know that if the Congress were to enact anything remotely similar to the Fed’s savage and relentless attack on savers and wage-earners, they would be on the receiving end of the torches and pitchforks that would descend on the Imperial City.

The Donald Nailed It: “We Are In A Big Fat Ugly Bubble”
Conta Corner blog – David Stockman – 27 Sept 2016

http://davidstockmanscontracorner.com/the-donald-nailed-it-we-are-in-a-big-fat-ugly-bubble/

That all pervasive hissing sound is caused by the deflation of Orwellian Economics and the associated hissy fits are triggered by the deflation of Orwellian Politics.

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One Response to Voices from the Three Empty Quarters

  1. Scott Bowman says:

    “Janet Yellen and her merry band of money printers are oblivious to the dangerous speculation and valuation excesses that their policies have implanted throughout the financial system.”

    Wrong, they know exactly what they are doing! The Fed knows and the central bank of central banks, the Bank of International Settlements, whose members account for almost every major central bank on the planet also know. Incidentally, a few years back, Iraq, Afghanistan and Libya were a few of the BIS holdouts, but that changed.

    You see, the larger the Fed’s balance sheet, the more money they can pass to their private – and sometimes secret (“give me control of the money and I care not who makes the laws”~ Rothschild, et. al) – shareholders (commercial banks). In fact, the Fed has a COST-PLUS contract and a GUARANTEED 6% PROFIT off of everything the Fed touches – think stocks. Almost immediately, the Fed rigged the system to blow, then burst bubbles, sucking the wealth out of this Nation for over 100 years in the process. It’s all about buy low and sell high, rinse and repeat.

    The Fed is a private corporation with a monopoly on the printing of the money supply, and monopoly begets monopoly. To get money into circulation and for the Government to pay the bills, Govt. bonds are traded for Fed Reserve Notes (actually a lien) from the Fed – owner of the largest amount of U.S. Govt. debt. To even accounts with the Fed, the Govt. has to then borrow even more to repay not only the debt of the bonds but also the interest. In other words, a never-ending debt spiral and it’s absolutely above the law:

    https://www.bing.com/videos/search?q=YouTube+Greenspan+relation+to+president&view=detail&mid=6D623FB768DFFEEB3ADD6D623FB768DFFEEB3ADD&FORM=VIRE

    The Fed is not subject to a full audit and it’s against the law to audit their Open Window operations. Say what!?

    Now, there is a “conspiracy theory” surrounding the sinking of the Titanic when Congressmen who opposed the origination of the Fed drowned, but I will leave that to the reader to explore. Know this though, that any President of the United States who tried to take back control of the money supply was either poisoned (Jackson) or murdered (Lincoln, Garfield , McKinley and Kennedy). Kennedy had the Treasury print almost half billion “dollars” in non-interest bearing Treasury Notes right before he was assassinated. Johnson immediately reversed Kennedy’s executive order and the Treasury Notes never went into circulation.

    It’s too bad because this Nation rose to prominence by issuing non-interest bearing “dollars” and it would be wise and beneficial to return to this practice and to not have to pay to use our own money! Unfortunately, it’s not likely to happen. Congress recently made some effort to take back part of the Fed’s 6% Profit ($Billions$) to fund a highway bill but were unsuccessful – money talks and the bribed walked. Likely, thee trillionaire-trust families of the world (RedSheilds & Sassoons (of opium war fame)) won’t allow it. As, Paul Harvey might say: “And now you know the rest of the story.” Well, almost anyway.

    Usury is sin – death to the money changers. Roll the guillotines!

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