David Stockman KWN Interview: “This Market Is Off Its Rocker!”

KWN Interview

David A. Stockman: Former Dir. of the US Office of Management and Budget (USOMB), Economic Policy Maker, Politician, Financier & Acclaimed Author –After leaving the White House, Stockman had a 20-year career on Wall Street where he joined Salomon Bros. He later became one of the original partners at New York-based private equity firm, The Blackstone Group and in 1999 started his own private equity fund based in Greenwich, Connecticut.

King World News - The Great Deformation- The Corruption of Capitalism in America (c)Defying right- and left-wing boxes, his latest book a New York Times best-seller, The Great Deformation: The Corruption of Capitalism in America (2013), Stockman lays out how the U.S. has devolved from a free market economy into one fatally deformed by Washington’s endless fiscal largesse, K-street lobbies and Fed sponsored bailouts and printing press money.

Bull Market Aftermath

Submitted by Bill Bonner – Chairman, Bonner & Partners

I’m sure you saw the nasty economic news coming out of Russia this week…

The ruble crashed, the major stock index melted down and the Russian Central Bank tried to stop the bleeding with a massive, historic rate hike.

Bad news for Russians and the Russian economy, in other words.

But what if something like that happens here, in America?

I know that may sound far fetched — but let’s take a quick peek at some evidence of past American meltdowns…

The great crash of 1929, which led the way to the devastating Great Depression…the extended bear market of the 70’s with brutal oil prices and inflation…Black Monday in 1987 where the Dow slipped 22% in once day…the Tech Wreck with a total loss of $5 trillion in wealth from the dot-com bubble’s burst…and the most recent financial crisis, where the major indices dropped in excess of 20%.

Now, all of those crashes and bear markets had different and varying causes — but they also had two things in common:

1) they caught many investors unaware, losing them trillions and trillions of dollars.
2) they made investors who were prepared RICH.

And considering that US stocks have rallied past all time high after all time high…another bear market or crash could be right around the corner.

Some investors are unprepared and will lose. Others are prepared and will get rich.

What if you are a member of the second group?

Building Wealth’s Braden Copeland has created just the type of pre-emptive protection plan to become just that.

You can get the whole story right here: Bull Market Aftermath

To your protection,
Will Bonner
Founder,
Bonner & Partners

Japan Forever; And For Us?

Submitted by Jeffrey Snider  –  Alhambra Investment Partners

I suppose this was not really a surprise given how the Japanese people seem to have simply accepted their fate, economically speaking, so the resounding re-election of Abe’s party removes any further sympathy from a people dooming themselves to this sustained, toxic course. The election itself was not all about the economy in immediate consideration as there were several other factors, but Japan’s place is drawn by its economic depression; a fact even Abe acknowledged in his victory.

Japan’s economy has been sluggish under more than 15 years of deflation, which made Japan’s weight in the international community decline and made Japan’s diplomacy and security policy weak.
We can pursue powerful diplomacy only after we obtain a strong economy.

To that end, Krugman wins. This latest recession was laid to rest inside the cover of “austerity.” In the Japanese form, that meant blaming the sales tax and that minor attempt toward fiscal sanity. It seems as if the electorate has bought it yet again.

Japan had appeared on track for recovery after Abe swept to power in late 2012, but an April sales tax rise slammed the brakes on growth and plunged the economy into recession — prompting the premier to delay a second rise that had been set for next year. [emphasis added]

The highlighted word is everything, as positive numbers do not make an economy strong or even reflect as much. There is a vast difference between nominal and real, which is where the story of Japan’s latest collapse was written. This recession, which is getting even worse despite all of these confident projections consistent with austerity blaming, was clearly in place long before the tax change.

ABOOK Dec 2014 Japan GDP Revised

Continue reading

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

Pope Francis Climate Change Encyclical To Anger Deniers, US Churches (Observer)
Hungry Britain: Millions Struggle To Feed Themselves, Face Malnourishment (Ind.)
Decline in Oil Could Cost OPEC $257 Billion in 2015 (Daily Finance)
US Oil-Producing States See Budgets, Jobs at Risk as Price Falls (NY Times)
China’s 3.5% Trade Growth in 2014 Falling Far Short Of 7.5% Target (Reuters)
Japan Approves $29 Billion Stimulus Plan, Impact In Doubt (Reuters)
Japan Approves $29 Billion Spending Package to Boost Economy
The Keynesian End Game Crystalizes In Japan’s Monetary Madness (Stockman)
How Central Banks Saved The World (Stocks) In 2014 (Zero Hedge)
Now Whitehall’s Crazy Eco Zealots Want To Ban Your Gas Cooker (Daily Mail)
Mexico Withdraws $3.4 Billion From Pemex as Oil Revenue Shrinks (Bloomberg)
Greece Faces New ‘Catastrophe’ As PM Battles To Avert Snap Elections (Observer)
Challenging UK Party Games Ahead As Greece Threatens 2nd Debt Crisis (Observer)
You Can Put The Next Crash On Your 2016 Calendar Now (Paul B. Farrell)
2014: The Year The Internet Came Of Age (Guardian)
China Needs Millions of Brides ASAP (Bloomberg)
Rising Oceans Force Bangladeshi Farmers Inland for New Jobs (Bloomberg)
Siberian Dog Allowed To Stay In Hospital Where Owner Died 1 Year Ago (RT)

Continue Reading: Debt Rattle December 28 2014 – The Automatic Earth

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