{"id":53797,"date":"2020-06-21T13:18:32","date_gmt":"2020-06-21T18:18:32","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53797"},"modified":"2020-06-21T13:18:37","modified_gmt":"2020-06-21T18:18:37","slug":"david-stockman-on-fiscal-disaster-social-unrest-and-the-presidential-election","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53797","title":{"rendered":"David Stockman on Fiscal Disaster, Social Unrest, and the Presidential Election"},"content":{"rendered":"\n

David Stockman on Fiscal Disaster, Social Unrest, and the Presidential Election<\/a><\/h3>\n\n\n\n
\"Fiscal<\/figure>\n\n\n\n

International Man<\/strong>: Recently, massive riots have broken out in many cities across the US.<\/p>\n\n\n\n

Despite the unrest\u2014and the economic damage from the shutdowns\u2014the stock market continues to rally.<\/p>\n\n\n\n

It seems that markets don\u2019t reflect earnings, economic prosperity, or growth. What is going on here?<\/p>\n\n\n\n

David Stockman<\/strong>: It\u2019s quite simple. The Fed has unleashed the greatest torrent of liquidity ever, and it\u2019s finding its way into a relentless, massive bid for risk assets.<\/p>\n\n\n\n

Since the eve of the Lockdown Nation disaster on March 11, the Fed\u2019s balance sheet has erupted from $4.3 trillion to nearly $7.2 trillion. That\u2019s $32 billion per day\u2014including weekends, Easter, and nationwide riot days.<\/p>\n\n\n\n

Worse still, at their June meeting, the mad money printers domiciled in the Eccles Building promised to keep printing $120 billion per month to buy US Treasuries and other assets for an indefinite period. That should get us to a $10 trillion balance in less than two years\u2019 time.<\/p>\n\n\n\n

What this means, of course, is that honest price discovery in the canyons of Wall Street is deader than a doornail. We now have a putative capitalist economy in which the most important prices in all of capitalism\u2014the prices of financial assets\u2014are pegged, rigged, and manipulated by the central banking agents of the state.<\/p>\n\n\n\n

The result, of course, is speculation and malinvestment on a biblical scale.<\/p>\n\n\n\n

As to the former, we are now being treated to the preposterous spectacle of an IBO\u2014or Initial Bankruptcy Offer\u2014of the stock of bankrupt Hertz.<\/p>\n\n\n\n

Hertz\u2019s stock is worthless. It\u2019s pinned under a pile of $20 billion of debt\u2014senior debt securities, which are trading at 40 cents on the dollar\u2014and a vastly overvalued fleet of vehicles.<\/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 Fiscal Disaster, Social Unrest, and the Presidential Election International Man: Recently, massive riots have broken out in many cities across the US. Despite the unrest\u2014and the economic damage from the shutdowns\u2014the stock market continues to rally. It seems that markets don\u2019t reflect earnings, economic prosperity, or growth. What is going on here? […]<\/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":[2,6],"tags":[2120,29923,6228,657,3174,12380],"class_list":["post-53797","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-david-stockman","tag-fiscal-disaster","tag-international-man","tag-protests","tag-social-unrest","tag-us-presidential-election"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53797","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=53797"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53797\/revisions"}],"predecessor-version":[{"id":53798,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53797\/revisions\/53798"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}