David Stockman Interview At King World News
David Stockman: The clock is ticking. The carnage is coming soon and it’s not merely Greece and whether it stays in the euro or not….’But it’s symptomatic of what I believe is the gathering crisis in the world, which is that our two-decade long grand experiment in financial bailouts, massive money printing by central banks everywhere, and non-stop Keynesian debt stimulus is heading towards the wall.
Look at what’s coming down the pike. After Wednesday in Europe, it’s inconceivable to me that there will be any lasting deal on Greece. It is almost certain now that we are at the threshold or crossing the Rubicon which will result in a crackup of the EU and the euro. There are just too many centrifugal forces blowing apart this experiment, which was misbegotten from the very beginning.
That will then catalyze a thundering global crisis of confidence in central banks, generally, and then we will be off to the races. Everywhere we look in the world the central banks are on the edge of desperation. Sweden (has now) joined the cavalcade of negative interest rates. Denmark was already there and is desperately fighting off a massive inflow of capital out of the EU and into their market.
We saw the calamity a few weeks ago when the Swiss finally had to give up their rather lunatic peg and the exchange rate soared overnight, creating enormous losses and carnage. Draghi is about ready to unload $1.3 trillion of make-believe, printed out of thin air money into the European financial and bond markets.
Japan’s madness knows no limit. The red capitalists in Beijing are flying by the seat of their pants right now as they see an implosion everywhere in their massively overextended and debt-ridden markets, particularly real estate. Brazil and Turkey are in huge trouble……
This post was published at David Stockmans Contra Corner on February 18, 2015.
Recent Comments