{"id":50538,"date":"2020-01-13T20:20:20","date_gmt":"2020-01-14T01:20:20","guid":{"rendered":"https:\/\/olduvai.ca\/?p=50538"},"modified":"2020-01-13T20:20:25","modified_gmt":"2020-01-14T01:20:25","slug":"david-stockman-on-what-triggers-the-next-financial-collapse","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=50538","title":{"rendered":"David Stockman on What Triggers the Next Financial Collapse"},"content":{"rendered":"\n

David Stockman on What Triggers the Next Financial Collapse<\/a><\/h3>\n\n\n\n
\"financial<\/figure>\n\n\n\n

International Man<\/strong>: You have sounded the alarm on a coming financial crisis of historic proportions. How do Trump\u2019s trade policies figure into your view that a crisis is coming?<\/p>\n\n\n\n

David Stockman<\/strong>: Trump\u2019s trade policies only create more risk and rot down below.<\/p>\n\n\n\n

They\u2019re just kicking the can down the road. With this latest move by the Fed, they have cut the interest rates three times and short-term rates are back at 1.55%. They\u2019re pumping their balance sheet back up\u2014it\u2019s up $300 billion just since September.<\/p>\n\n\n\n

The Fed has reverted to all of the things that have created the underlying rot\u2014and that means when finally things break loose, it\u2019s going to be far worse than it would have otherwise been.<\/p>\n\n\n\n

Given that they\u2019re kicking the can down the road, they\u2019re building the pressure in the system to really explosive levels.<\/p>\n\n\n\n

The trade chaos that Trump\u2019s creating is probably the catalyst that will bring down the whole house of cards.<\/p>\n\n\n\n

At end of the day, it\u2019s about the Red Ponzi. The world economy would be not nearly as good as it looks had the Chinese not been borrowing like there\u2019s no tomorrow and building regardless of whether its efficient or profitable.<\/p>\n\n\n\n

This has kept the global economy inching forward on a totally artificial basis. You could track it; some people call it the \u201cChina credit impulse.\u201d Every time they get into trouble, they turn on the printing press. That causes commodity prices to rise and industrial activity and trade to pick up. It shows up in the GDP numbers, and then everybody gets all excited.<\/p>\n\n\n\n

The fear of recession that we had a while back has now abated. We\u2019re back to another global reflation meme, but none of this is sustainable.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

David Stockman on What Triggers the Next Financial Collapse International Man: You have sounded the alarm on a coming financial crisis of historic proportions. How do Trump\u2019s trade policies figure into your view that a crisis is coming? David Stockman: Trump\u2019s trade policies only create more risk and rot down below. They\u2019re just kicking the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2120,916,431,6228,3650],"class_list":["post-50538","post","type-post","status-publish","format-standard","hentry","category-economics","tag-david-stockman","tag-financial-collapse","tag-interest-rates","tag-international-man","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50538"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50538\/revisions"}],"predecessor-version":[{"id":50539,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50538\/revisions\/50539"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}