Former White House Budget Director David Stockman says,“Much of the mainstream media is caught up inside the bubble . . . They have an extreme case of ‘recency bias.’ They can’t remember the events of a few years ago.” Stockman, whose latest book is called “The Great Deformation,” goes on to say,“Look at this bubble inflating all around us. . . . The Russell 2000 is trading at 75 time reported earnings. People seem to forget that’s exactly where we were in 2007 and 2008.” Stockman has a grim assessment of the current economy. Stockman contends,“You are in a crony capitalism bankrupting mess. That is very disconcerting news to people inside the bubble.” On China, Stockman says, “They are sitting on this massive hoard of paper that they’re never going to be able to do anything with. They have huge distortions inside of their economy . . . as bad as anything we have.” Stockman goes on to say, “This is a symptom that this huge central bank game is nearing its end stage.” Stockman warns, “When the Fed finally stops printing $85 billion a month . . . we’ll have falling bond prices and rising yields, a crisis at the heart of the financial system, the $12 trillion Treasury note and bond market. That’s when the day of reckoning will finally begin to unfold, and everybody will be caught up in it.” Stockman warns, “This is not a viable system. It’s a house of cards . . . I think it will be a deflationary event . . . financial asset prices will collapse. ” How does gold do in this calamity? Stockman says, “As they see those assets go up in smoke, I think there will be a flight to a monetary asset that people will have some confidence in, and gold will be that asset.” Join Greg Hunter as he goes One-on-One with author David Stockman.
Reprinted from USAWatchdog.com.