Today David Stockman stunned when he warned King World News that the Fed’s massive trading room “is a weapon of financial mass destruction.” Stockman also warned about the enormous danger of the Fed’s continued interventions in major markets. KWN takes Stockman’s warning very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget and help save the United States from collapse. Below is what Stockman had to say in part I of a series of powerful interviews that will be released today.
Eric King: “The Fed and the massive trading room where they are managing these markets, are they going to eventually get overrun and it’s going to be a horror show even in that trading room, where there’s nothing left they can do, no levers to pull as everything comes unwound?”
Stockman: “That trading room is a weapon of financial mass destruction. That’s the point that people need to understand. The people running the Fed today have no clue of the danger that they are creating through this massive market intervention and manipulation….
“The whole market is not trading on any kind of fundamentals. It’s trading entirely on the word clouds being emitted by the Fed speakers and the cash which is being massively injected into the market each day.
They have totally disabled and corrupted the heart of our financial system. They have turned everyone in the financial markets into Fed-followers and front-runners. It is an extremely foolish and destructive policy, and yet it is now the mainstream view that all of this is for the good. It’s a very crazy time when you really think about where this is leading.”