The Golden Truth: Must-Watch Interview With David Stockman From CNBC

Sunday, February 6, 2011

Must-Watch Interview With David Stockman From CNBC

"When the Fed stops buying, who's going to these [Treasury] bonds?"

David Stockman was the Director of the OMB during Reagan's first term. Even back then he was known as a crusader against deficit spending and the accumulation of Government debt. My estimation of him was raised considerably when he recently was highly critical of Reagonomics and the extension of the Bush tax cuts: "We're simply deferring massive taxes unfairly and immorally putting huge debt burdens on future generations and that is just wrong." Stockman supported the tax cuts under Reagan, but ONLY if they were accompanied by a commensurate amount of spending cuts. They were not...

He was on CNBC Friday for his take on the jobs report: Re CNBC's reporting on the employement report: "I heard more spin-control when I came out this morning than I ever heard in the White House."

On the fraudulently constructed unemployment rate metric of 9%: "if we had the same [labor force] participation rate this January that we had a year ago...the unemployment rate reported this morning would have been 9.9% rather than 9...the 103.2mm jobs that were in the economy reported this morning is a number that was first reached in October 1999." Thus there's been no net job creation over the last 12 years.

And on the Fed money-printing policy: The Fed policy is (so) dangerous. They say they are printing money like there's no tomorrow...to somehow stimulate jobs when it's pretty clear that the only thing that's happening is that all of these new high-powered reserves are flowing into the world economy creating the most vicious commodity hyperinflation"

Here's is the segment, which starts around the 3 min mark. Unfortunatey Faber and the other douchebag on CNBC cut-off Stockman several times while he's making some insightful comments, but this is worth watching:

10 comments:

JoeMonday, 07 February, 2011
no net job creation over the last 12 years = stealth depression = debt orgy dressed up as GDP gains by the ministry of truth

Joe M.
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AnonymousMonday, 07 February, 2011
Thanks for posting, I missed this on Friday. I always enjoy reading or watching David Stockman.
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JPMonday, 07 February, 2011
Cutting off guests is a standard CNBC tactic.

If they have a honest guest who gets a wee bit too truthy for Jaime Dimon's taste, "sorry, we have to cut in for breaking news". That news invariably is fallback crapola used as a time filler to get the person off air. A report like "it's been rumored Steve Jobs has a new large pimple on the left cheek of his arse. Obviously this represents a great opportunity to buy AAPL."

Once you're aware of it you see this trick used a lot on BS Central.
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AnonymousMonday, 07 February, 2011
JP: Your CNBS report is TOO FUNNY! "...a new large pimple..." indeed! LOL!
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AnonymousMonday, 07 February, 2011
Dave--

2 quick questions please: 1. What do you think of BullionVault.com, are they trustworthy? 2. Same question for GoldMoney.

I'd like to recommend a "fast and easy" physical bullion outfit to someone. Would you recommend either one of these? (My younger brother, who works for ABN AMRO in London, is in BullionVault, but I haven't even asked his opinion yet. He usually does his research though.)

THANKS VERY MUCH for any information or opinion that you can give me.

All the best,

Newman.
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mabmanMonday, 07 February, 2011
another great site:

http://reason.com/blog/2011/02/03/coming-soon-a-300-percent-incr

http://reason.com/blog/2010/09/27/the-lighter-side-of-deadbeats
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Dave in DenverTuesday, 08 February, 2011
I don't know anything about BullionVault. Goldmoney is James Turk's company. I don't know what his fee structure but Turk is as trustworthy and credible as anyone out there. If an offshore storage solution is needed, I would use Goldmoney.
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AnonymousTuesday, 08 February, 2011
Stockman's analysis is flawed. The Fed never stops buying bonds. The Fed is all-in, as are both political parties with the exception of a handful of Tea Party types in Congress. This is our Dr. Strangelove moment in finance. We ride this bitch down until it explodes.
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Dave in DenverTuesday, 08 February, 2011
Anonymous, I believe he was asking the question rhetorically. He is smart enough to know that QE3 will quickly follow QE2.5
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JoeTuesday, 08 February, 2011
Silver prints 100% YOY gain.

http://www.kitcosilver.com/

Joe M.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.