Wednesday , November 14 2018
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David Stockman

David Stockman

David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

Articles by David Stockman

Red Ponzi Shock: Chinese Credit Growth Is Now Lowest On Record

12 hours ago

Fast forward to today when overnight the PBOC reported its latest money and credit data, and even under the latest and broadest definition, October money and credit data surprised sharply on the downside, mainly due to the ripple effects of the initially over-zealous deleveraging programme and despite pressure by regulators on banks to help keep cash-starved companies afloat, pointing to further weakening in the economy in coming months.
And while October is typically a slow month for Chinese credit, growth in key gauges such as total social financing and money supply fell to record lows, reinforcing views that policymakers will need to step up efforts to revive flagging investment.

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Another One Bites The Dust—Honda To Move Some US Production To China

18 hours ago

According to the Nikkei Asian Review, Honda Motor Company will expand the output of its Acura luxury vehicles in China by shifting production overseas for its SUV model, rather than importing it from the US.
The shift in production could be problematic for the company’s Anna, Ohio engine plant; the all-wheel-drive system plant in Russells Point, Ohio; its transmission plant in Tallapoosa, Georgia; and the SUV’s assembly line located in East Liberty, Ohio, which have been supplying parts and finished vehicles to the world’s second-largest economy.

https://www.zerohedge.com/news/2018-11-12/another-one-bites-dust-honda-shifts-us-production-suv-china-amid-trade-war

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The Great Global Debt Re-Set/Default—-Nearer Than You Think

18 hours ago

Earlier this year, I wrote a series of articles (synopsis and links here) predicting a debt “train wreck” and eventual liquidation. I dubbed it “The Great Reset.” I estimated we have another year or two before the crisis becomes evident. Now I’m having second thoughts. Recent events tell me the reckoning could be closer than I thought just a few months ago.

https://www.forbes.com/sites/johnmauldin/2018/11/07/a-worldwide-debt-default-is-a-real-possibility/#6dc04e6b53aa

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Once Again: Debt Is The Cause, Not The Cure!

20 hours ago

The main issue is that government spending has shifted away from productive investments which create jobs (infrastructure and development) to primarily social welfare and debt service which has a negative rate of return. As I showed on Friday, according to the Center On Budget & Policy Priorities, nearly 75% of every tax dollar goes to non-productive spending……..However, these “sugar highs” are temporary in nature. The problem is the massive surge in unbridled deficit spending which provides the temporary illusion of economic growth simply “pulls forward” future consumption leaving a void that must be filled.

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52% Of American Children Live In Means-Tested Welfare Home

2 days ago

The Census Bureau has released new data that strengthens the case for calling the current generation of American children “The Welfare Generation.”
Among American residents under 18 years of age in 2017, according to the Census Bureau, 51.7 percent lived in households in which one or more persons received benefits from a means-tested government program.

https://www.cnsnews.com/commentary/terence-p-jeffrey/welfare-generation-kids-households-getting-government-assistance-drop

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Understanding the Global Recession of 2019

2 days ago

2019 is shaping up to be the year in which all the policies that worked in the past will no longer work. As we all know, the Global Financial Meltdown / recession of 2008-09 was halted by the coordinated policies of the major central banks, which lowered interest rates to near-zero, bought trillions of dollars of bonds and iffy assets such as mortgage-backed securities, and issued unlimited lines of credit to insolvent banks, i.e. unlimited liquidity.

http://davidstockmanscontracorner.com/?p=240664&preview_id=240664&preview_nonce=0bf0784149&preview=true

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Europe Says No Thanks To NATO—-Forms Own Defense Alliance

2 days ago

Led by France, the European Initiative Intervention (EII) comprises the UK, Germany, Belgium, Denmark, Estonia, the Netherlands, Spain, Portugal and Finland to cooperate in the planning, analysis of new military and humanitarian crises, and possible joint activities in response to contingencies. It is planned to have a common budget.

https://www.zerohedge.com/news/2018-11-11/new-powerful-defense-alliance-changes-european-security-landscape

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The Bloodbath That Did Not End All Wars, But Fostered Worse

2 days ago

We are now upon the 100th anniversary of World War I, the war that was supposed to end all wars. While honoring the 16 million who died in this conflict, we should also condemn the memory of the politicians, officials and incompetent generals who created this horrendous blood bath.

https://www.zerohedge.com/news/2018-11-11/margolis-we-are-heading-another-tragedy-world-war-i

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Orange Jumpsuits For You! How Clapper And Brennan Spied On Congress And Then Lied

2 days ago

So what was the information that was finally declassified? It was written confirmation that John Brennan ordered CIA hackers to intercept the emails of all potential or possible intelligence community whistleblowers who may have been trying to contact the Congressional oversight committees, specifically to the Senate Select Committee on Intelligence and the Senate Judiciary Committee.
Simply put, Brennan ordered his people to hack into the Senate email system—again. Grassley is the longtime chairman of Judiciary Committee, and he was understandably appalled. But Brennan and Clapper classified the notification. It was like a taunt. “Sure, I’m spying on Congress, which is illegal. But it’s

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What Ace Pilot Eddie Rickenbacker Saw On The Morning of October 11, 1918—-Celebration Of The War’s End, Not Victory

2 days ago

And then it was 11:00 A.M., the eleventh hour of the eleventh day of the eleventh month. I was the only audience for the greatest show ever presented. On both sides of no-man’s-land, the trenches erupted. Brown-uniformed men poured out of the American trenches, gray-green uniforms out of the German. From my observer’s seat overhead, I watched them throw their helmets in the air, discard their guns, wave their hands. Then all up and down the front, the two groups of men began edging toward each other across no-man’s-land. Seconds before they had been willing to shoot each other; now they came forward. Hesitantly at first, then more quickly, each group approached the other.
Suddenly gray uniforms

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Nice Work, Mario! After $3 Trillion Of Money Printing, Eurozone Stalls to 0.2% Growth In Q3

2 days ago

The eurozone could not borrow from the momentum of the U.S. economy in the third quarter as economic growth slumped to a tepid 0.2%, the slowest rate in more than four years. With the 19-nation currency bloc beginning to stagnate, and the heavyweights failing to post significant gains, Brussels is in panic mode, likely leaning on the European Central Bank (ECB) for further stimulus.

https://www.libertynation.com/europe-in-panic-mode-over-economy-as-u-s-a-soars/

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No Ceremony Needed: The Tragedy of America’s Entry into World War I

3 days ago

Yet it was a cataclysmic event in its own right that both foreshadowed more intense and violent warfare in the 20th century, and fueled the growth of gargantuan central government in the United States. Most crucially, however, it was a war that should never have been fought — its causal origins and assignment of guilt for same are still a hot topic of debate a century later, a fact that alone attests to its superfluity — and one that, in any case, the United States should never have entered. These are disturbing theses about the war that will not be remembered by any of the global elites in Paris this weekend, but given the lessons for today, Americans should learn about them so as to demand of

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The Red Ponzi’s Nightmare Scenario: 50 Million Empty Apartments And A Housing Price Crash

3 days ago

…. in addition to being the primary source of household net worth – and therefore stable and growing consumption – it has also been a key driver behind China’s economic growth, with infrastructure spending and capital investment long among the biggest components of the country’s goalseeked GDP. One result has been China’s infamous ghost cities, built only for the sake of Keynesian spending to hit a predetermined GDP number that would make Beijing happy.
Meanwhile, in the process of reflating the latest housing bubble, another dire byproduct of this artificial housing "market" has emerged: tens of millions of apartments and houses standing empty across the country. According to Bloomberg,

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No Bubbles For The Bottom 90%

5 days ago

Our entire economy is characterized by cartel rentier skims, central-bank goosed asset bubbles and stagnating earned income for the bottom 90%.
Despite the rah-rah about the "ownership society" and the best economy ever, the sobering reality is very few Americans are able to get ahead, i.e. build real financial security via meaningful, secure assets which can be passed on to their children.

http://davidstockmanscontracorner.com/wp-admin/post.php?post=239641&action=edit

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Wall-Street Crybabies Whine about the Fed’s QE Unwind after a Decade of “Wealth Effect”

5 days ago

These folks cannot say that the Fed’s QE unwind and higher rates might unwind some of the wealth of asset holders that resulted from the Fed’s desired “wealth effect.” That would be too clear. So they have to come up with hoary theories to back their “policy mistake” theme. This time it’s the theory of a “scarcity of bank reserves.”
For the crybabies on Wall Street, that’s “scarcity.” For savers, money-market investors, and short-term Treasury investors, however, it means the era of brutal interest rate repression has ended, and that they’re earning once again more than inflation on their money (savers might have to shop around).

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Never Happened Before—-89% Of Assets Yielded Negative Dollar Returns YTD

5 days ago

We’re in one of the longest economic expansion cycles in history and nobody’s happy. It’s mind blowing. You’d think 2018 would have people dancing in the streets. 3.7% unemployment, record stock market prices. Well the ladder until recently that is.
So let me rephrase: What happens if you have record buybacks, record dividends, and record earnings but 89% of assets yield a negative return in US dollar terms? No really that’s just what happened:

https://northmantrader.com/2018/11/06/mind-blowing/

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The United States IS Going Broke

6 days ago

They put the danger zone at a debt-to-GDP ratio of 90%. Once it reaches 90%, they found, a turning point arrives…At that point, a dollar of debt yields less than a dollar of output. Debt becomes an actual drag on growth. Again the current U.S. debt-to-GDP ratio is 106%.
We are deep into the red zone, that is. And we’re only going deeper. The U.S. has a 106% debt to GDP ratio, trillion dollar deficits on the way, more spending on the way. We’re getting more and more like Greece. We’re heading for a sovereign debt crisis. That’s not an opinion; it’s based on the numbers.

https://dailyreckoning.com/the-united-states-is-going-broke/

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Local Bank Runs In The Red Ponzi—-A Contagion Waiting To Happen

6 days ago

A bank run at a small local institution in the southwestern Chinese city of Zigong could be a sign of an impending financial crisis. Shareholders of Bank of Zigong in Sichuan Province absconded with 40 billion yuan ($5.78 billion), through loans issued to shell companies that they had created, according to a Nov. 2 post in a Chinese social-media account, and a report by Da Zhong, a state-run news website. The loans were long overdue, resulting in huge losses for the bank.
The news spread quickly, even though the post was deleted within 20 minutes by internet censors. Scores of bank customers rushed to dozens of bank branches in Zigong City to retrieve their deposits, while long lines of people

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Here Are The Hidden Risks That Will Sink Tesla

6 days ago

As much as Tesla has been struggling, I just wanted to point out that Tesla’s struggles are occurring during the largest wealth bubble that has ever occurred in America’s history. Tesla is a luxury car company that sells expensive cars to affluent people, the U.S. is responsible for approximately half of Tesla’s sales, and U.S. wealth is artificially inflated and heading for a bust

http://davidstockmanscontracorner.com/?p=239096&preview_id=239096&preview_nonce=1e25e7a15d&preview=true

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