Must See David Stockman Interview

5By Greg Hunter’s USAWatchdog.com

Sometimes I am shocked at what leaks out over the mainstream media.  Two days ago, former White House Budget Director in the Reagan Administration, David Stockman, dropped some financial bombs in an interview on FOX.  He said the Social Security Trust Fund  was “filled with confetti.”   This was not included in the cut I posted.  What is included in the clip is Stockman saying if the Fed was “gone fishing” for six weeks (meaning it would stop the $85 billion a month “open-ended” money printing),  “there would be calamity in the markets.”  I think if the Fed stopped its $85 billion a month money printing, there WOULD be “calamity in the markets”  in six minutes.  It seems everybody on both sides of the aisle hates his new book called “The Great Deformation.”  That tells me he’s doing something right.  The interview ends with Host Neil Cavuto saying, “On that happy note, if you have a syringe, you can now stick it in your eye.”  But that quote has been cut off on all the videos I saw.  (I saw it live and recorded it on my DVR.)

Comments
  1. Mike R

    Greg,

    I am wondering if it might be healthier for you and your viewers, if you chose not to react to every negative thought that enters your mind ?

    Maybe it’s time to look at healthier views, where not every single conversation is based upon what’s wrong with our economy, what’s wrong with these folks in DC, what’s wrong with our currency, whats wrong with social security, and so on.

    Not here to suggest any of your work is not worthy, but again just wondering if it might be worthwhile to consider things are going well. Could it be that just enough is going well, that is the basis of the stock market going higher ? Could enough be going well, that gold remains relatively locked in a trading range for a while longer ? Could enough be going well, that is the reason for the US dollar not yet tanking ?

    Surely, there is a lot of fairly biased media positive spin on everything, and if you go to a site like CNBC you’ll hear mostly 90% of what’s said as raging bullishness. Too there are probably just as many, if not more websites, or daily media that is equally negative.

    Personally, I come here to get a little bit from both sides. And for the past decade, I’ve dwelled mostly on the negative. As a result, I’ve lost a lot of money in the stock market, via shorting it time and again, and usually at the wrong times. I’ve perpetually blamed Ben Bernanke, for me losing my money. Whereas, if I had taken an equally positive view, just at the time I was so negative, I would have more than doubled my money.

    This is generally true in life. I despised all the Polly Anna’s out there. I was in essence a contrarian. I thought I would be rewarded by going against the crowd, and against the grain. And I’ve been perpetually wrong. This doesn’t mean however I’m ready to dive into stocks again. In fact, I will likely continue to shun stocks, because there is simply too little factual information I can learn about them on the Internet. Instead I choose to invest in what I do know, which is my job, my family, and my life. I’ve pulled a lot of money out of the bank, but not all mind you. I’m paying off my mortgage, in full, about 14 years ahead of time. Why ? Because I can. It’s that simple.

    As far as gold, or silver, I don’t invest in it because I think I will get “rich”. I mainly hold it as a diversification of some of what I have earned over the years. Gold is more widely held as an asset than many people think, but perhaps less so by folks here in the US, principally because things like stocks, bonds, houses are so much more heavily marketed here, than most countries on the planet. If anything, this country makes it very easy to invest in those things, and not so easy to invest or hold physical metals. While we do have choices for PM’s they are quite limited, if not even shady in terms of who offers them. It feels like I’m going to some obscure pawn shop whether I’m buying at a local coin store, or on the Internet.

    In any event, my meandering and rambling thoughts have gone on long enough for one piece. If you ever get the chance, or make the chance to write or interview folks who have some good things to offer about this economy, perhaps even at a grass roots level, rather than from all the corporate, or financial media talking heads, you might actually find your viewers will appreciate that too. You have a lot of good things going here !

    Good luck with it all !
    Mike in Chicago.

    • Greg

      Mike,
      I call it the way I see it and it is looking very bad. Stockman, a former White House Budget Director for the first four years of the Reagan Administration, backs up this view. That’s why I highlighted this interview. Thank you for your positive comment.
      Greg

      • Snorky

        I agree, Greg.

      • MrAudio106

        Greg, don’t know if you’ll get this…. I work for ATT and have a great job… to the best I know Im not in jeperody. I have been putting most of my earnings into the 401K. Im a single 51 year old Male with lots of silver and gold. just hearing that 401k’s wont be around in 10 years??? not asking for direction but just your opinion… do you think my 401K will be comprimized b4 I retire? I ask because I want to reduce size of contribution amount to almost nothing and the difference I will just keep buyin my silver and gold.

        Thanks and love your program. Tim

        • Greg

          Tim,
          I would at least cut you 401-K population to no more than the company match. I personally stop contributions altogether. I am not an investment advisor. All the best.
          Greg

    • Charles H.

      Mike R,

      Television spawned the phrase: “the perception is the reality.” Our perception has a lot to do with station in life and unique individual experiences. It is good you can pay off your mortgage fourteen years ahead of time; and diversify in gold. Your comments seem to reveal a station in life of some prosperity and accomplishment. But some of us may have lived a more austere life; one not as secure or accomplished. In fact, some as myself, have lived near poverty all their life, and have tasted tyranny, betrayal, and abandonment. Consequently, my world view is perhaps more defensive than your is. Your point of being positive is well taken – all organisms must strike a balance. But is the landscape today more positive or is it more negative? I suggest that America has become more “dog eat dog” than anytime in it’s history, and there is a tsunami of consequences coming. In that perspective, I believe there aren’t enough speakers or volume to sound the warnings. These are trying times – to rosey-up this site would be like putting lipstick on a pig.

    • droidX-G

      What possibly could be written about what is going on good in this economy? Oh, I know…how about the market highs…due to low volumes and extreme manipulation

    • April Gardner

      Mike, You are a self-absorbed bore. While you are reflecting on you, the vast majority of the nation cannot afford a gallon of milk. While you are thinking of you, with an absurd 14 year plan, the vast majority of people who live in Chicago are trying to survive in one of America’s most violent cities. You would do well to be a “contrarian” again because you are buying onto “their” line of BS as they walk in the opposite direction. If you do not belive that those who are managing the markets have devised the end-of-it-all, ask yourself why the quarterly memos were changed? Your meandering thoughts {aka day-dreaming} will result in your “ramblin’” Chicago’s streets looking for a loaf a bread under $8.00 per loaf when the dollar formallly crashes. Your perception of reality is far from any base in macroeconomic reality.

      By the way, why bother paying off your mortgage? Because you can?…You are so smug. If you had any sense you would try to get of it and rent. Or, haven’t you been informed that the IMF reached a deal with our gov’t to end deductions for interest paid on a mtge? This is absolute fact. It is called the “European Model”. You are an absolute fool. And as a fool your bubble will burst and your family will fall victim to your hubris.

      Finally, your letter is so absurd that it makes one wonder if you are not simply a shill. April

    • On The Beach

      Mike R, I got good news! It’s also called the good news! The most positive book, on da, (past, present & futoid), on da whole planetoid! Read it and weep! For joy! In the meantime: Listen & watch’yadog. That old star named Gabriel is in both, in the movie he plays himself. See if you can find him?

      https//www.google.com/search?q=Paul-Whiteman-Bing-Crosby-great-Day-(1929)-YouTube&oq

      https//www.google.com/searchq=The+Story+of+Ruth+youtube&oq

      Positive you wants,

      Positive you gets.

  2. Nathan

    That would have been much better if Cavuto would have shut his mouth and let the guy speak .

    • Greg

      Nathan,
      Still, this was a wealth of information and confirmation we are headed for a crash. We just don’t know when but it happens before 2016 according to Mr. Stockman.

      • Dwain

        To divert. blame for economic collapse and justify martial law, I’m betting government manufactures some sort of calamity much sooner than 2016. The last thing they want, is an off with their heads French style revolution on steroids. Covert detonation of a nuke or two in strategic locations and there you have it. Oligarchs finally get to recognize dreams of exercising absolute power from pre-planned hardened command and control resorts.

      • jc davis

        When the 45 billion $ monthly checks stop…Who pays the bills? We do.

    • tsuki

      I agree. TV personalities need to learn interview techniques if they are going to pose as journalists.

    • Reader

      I agree. Personally, I detest this type of interviewer.

    • April Gardner

      You are absolutely correct. Cavuto has become his own guest.

  3. Rod

    Greg, great clip! It always amazes me how people will do anything to hide the truth. Why don’t we as a nation just buck up and face the monster we have created, take our medicine and start the process of recovery. But no this will destroy us and our children. David Stockman is correct, The biggest mess we have ever faced! Keep up the great work!

    • Greg

      Thank you Rod for weighing in.
      Greg

  4. Mike

    Greg,

    People don’t understand what is really happening. September 11, 2001 was someone or something’s way of telling the people, “World Trade is going to collapse.”
    7 years after 9-11, the US had a bankrun which started us toward this collapse, kind of like Flight 11 hitting the North Tower. Europe was severly struck 11 years after 9-11, like Flight 175 hitting the South Tower. I could list tons of other 7′s and 11′s or SEPT 11′s, but I will refrain.
    This summer, there will most likely be a military strike or attack and/or a large bank failure in July. And Mr. Stockton is absolutely right that things will be horrible before Obama finishes his second term. Europe’s economy will have collapsed by then, and the US will be well on its way to collapse as well.

    • Greg

      Mike and Tad,
      Thank you for your comments and kind words.
      Greg

      • Mike

        You are welcome Greg, and you have a great site with fantastic and informed guests. I hope my post above didn’t sound nutty. Like financial expert follow charts and stats, I follow patterns–and the next four years could be a very wild ride.

  5. Tad

    Crony capitolist’s( Nazi’s)watch out! Stockman to the rescue!

  6. J Grosvenor

    Hi Greg! Do you think you can get Mr. Stockman for one of your interviews? I think it would be very informative with you asking the questions.

    • Greg

      J and Ray,
      I will try to get him. He’s a gem!!
      Greg

  7. Ray

    Greg, when are you going to interview David Stockman?

  8. MichaelR

    Stockman knows his stuff – I followed him as business student in college.
    What is going on economically and politically is being carefully engineered. The creation of the econo-political super class that will control everything from A to Z is effectively established. Economically the effort to collapse the currency is nearly complete. This will allow the creation of a digitized currency that is completely controlled by the econo-political super class. If you have physical gold or silver, it will be outlawed. Look what they are currently doing to the only means of protecting your physical gold and silver and most importantly the document (soon to be formally) known as the Constitution -> destroying the 2nd Amendment. We are well on our way to becoming North Korea Supersized. This will not end well at all.

  9. Brian

    Wow, how did that get past the MSM censorship dept? As opposed to Mike R. I am very glad to hear these interviews, because I can hear warm and fuzzy outlooks ALL DAY LONG from all of the financial analysts in the media who don’t want the investing party to end.

  10. Mark Douglas

    Thank you for posting the interview Mr. Hunter. David Stockman expressing such concerns should wake up those still watching MSM. Your work and those like you are waking up folks.

    • Greg

      Mark and Justin,
      Thank you for the comments and link.

  11. justin king

    Stockman and Orszag had a battle-royale on Reuters on april 5. – It’s 57 minutes and can be seen on the Barry Ritholz site – THE BIG PICTURE in the video section.

  12. Ugly

    When people say we need to stay positive, positive about what. I see nothing on any economic indicator that show any kind of recovery or on anything to positive about.

    Sure, I have friends that are ‘playing’ stocks and winning today. But I know they will have severe anguish in 1-2 years because they have not prepared for the obvious–a financial crash. I am actually slowly selling my mutual funds and using it for debt reduction. I have two to go. I will cash one in Nov 2013, and maybe my final one in Jan 2014.

    I am going for debt reduction and conservative living. I no longer see in investing in the stocks and dollar stuff. I will now put the monies into my own business and paying down debt–that will be my pay raise.

  13. Dwain

    Can’t believe Stockman’s comments were allowed on prime time. Truth scares the living day lights out of propagandist and fascist. Maintaining the matrix is priority one.

    Reminds me of old bible lesson where the Lord comes as a thief to those not watching. His visit is not nice but as the days of Noah and Sodom. Interesting how history repeats.

  14. Dwain

    Thanks for helping us watch Greg.

  15. Tom

    There are not two sides to this story. The “other side” is simply people putting their heads in the sand and wishing it away. No matter how many warnings people like Greg give, most people will just try to wish it away by saying it can’t all be bad.

  16. John

    Greg, as far as you being too negative, don’t make me laugh! There are so many pollyiannas out there in financial la la land that your’s is a voice in the wilderness

    • Greg

      Thank you John for your support!
      Greg

  17. Mike

    Greg, unless you edit which comments are allowed on your website, you have one of the most thoughtful set of readers around with very little if any flaming… refreshing!

    I have a similar story as Mike R in that staying out of the market has produced poor returns since 2007 but I have to laugh when people get excited about hitting all time highs… flat returns after 6 years isn’t what I’d call great performance… especially considering the historic central bank manipulation of the market.

    It would be great if you could do a piece about the mechanics how gold and silver prices are set each day… especially on the impact that paper contracts have on the spot price. Something is odd about prices falling when demand for physical precious metals is soaring. Perhaps goldsilver.com’s Mike Maloney interview?

    Regarding the 6 minute prediction, we may be able to see who’s right soon…
    http://www.cnnexpansion.com/economia/2013/04/10/la-fed-ve-fin-de-estimulos-en-2013

    Thanks for your reality-based perspective. Perception is reality up to a point… but it’s the point that hurts!

    Mike

    • Greg

      Mike,
      I do very little censorship. I do not allow folks to come on and give massive criticism and trading advice unless they use real verifiable names. Funny how some people do not want to own their comments.
      Greg

  18. Tom

    the trouble is that there is simply no way out of this very sophisticated ponzi scheme. because its nature is one of lie built upon lie the liar(s) come to a point where they have no choice but to cross their fingers and lie some more.

    if we would have just bitten the bullet in ’08 and let these TBTF’s fail it would have initially been harder but these financiers would have gotten the message, and we would have gone down a different road than the one we find ourselves on. we might’ve even been well along to a real recovery by now. instead, we find ourself, as a nation, following the whims of sociopathic gamblers, liars and cheats.

    • Greg

      Tom, you are right there really is no way out until we crash and we will crash very hard.

  19. josh

    this interview is a good example of why nobody in new york city watches fox. stockman is a very aggressive speaker and yet he was barely allowed to get a word in edgewise. npr, which is on the opposite end of the political spectrum, actually let stockman speak.

    http://www.npr.org/templates/story/story.php?storyId=129052425

    this is amazing because stockman has been hated by the left since he touted the supply side economics nonsense under reagan. i give a lot of credit. he obviously learned form his mistakes. i greatly admire him for speaking truth to power.

    as an aside, i wish people would stop calling what the fed is doing as a “keynesian approach.” what’s going on right now is a complete distortion of john maynard keynes’s ideas. i would be for an appropriately timed keynesian fiscal stimulus. fiscal stimulus means building the hoover dam not recapitalizing investment banks! this isn’t fiscal stimulus, this is a ponzi scheme!

  20. Farley

    I would also like to see Stockman interviewed by you Greg.
    This interviewer was just plain horrible. Maybe I’m just spoiled. :-)

    • Greg

      I’ll try to get him. Other folks have been asking for him too.
      Greg

  21. kk

    Cavuto shows the true colors of those who want the public to ignore the warnings of a person like Stockman has when at 3:21, he says that “Repbulicans are pissed at you”. My jaw dropped when I heard him say that word on national TV, but I guess even lamestream Cavuto had a fruedian slip here.

    • Greg

      KK,
      I think everybody on Wall Street and congress is “pissed” because he telling the truth. This is going to crash the only thing that’s up for debate is timing. Thank you for weighing in.
      Greg

  22. Liquid Motion

    Tom,
    That alternative route would have been something akin to a black hole.
    I dont sympathasize with the Central Planners and their ineptitude but the path they took was one of avoiding instantaneous wealth destruction across the board. Letting the TBTF FAIL, is not in keeping with the social order mandate.

    Greg,
    Crash we will, but not in the sense that you or I would wish for.
    No..Not in that sense where is becomes a cleansing process. It is a planned chaos. There is no other alternative. Not now or in the future.
    The Central Planners have come to that fork in the road. Fiat currency has served its “useby date” and now we a accelerating faster towards the inenvitable “loss of faith”.
    We are truly living in the designer world. Like fashion, which changes from season to season, fiat currency is now failing and will be discarded and replaced by the new fashion (one that promises a better fit and has unmistakable quality).
    So the great engineers have planned for the chink in the armour, the weak link (fiat currency). Better get ready to hand over your soul, your rights and freedoms. There is no other solution when the social order fails and chaos prevails. Governments already have control over the masses, but in a Crash scenario, you want safety and security….be prepared to allow even more control and power to revert to the central planners. That is Grand Plan, designed and engineered to ensure slavery and capitivity.
    Dont fight it…just go fishing.
    Best of weekends to you…and thanks for your fine service to the community.

  23. countdowntocollapse.com

    I believe inflation will destroy the dollar, leading to a global monetary collapse, followed by a new digital currency. That’s why upgrading the electrical and telecommunications grids are so important to Big Brother.

  24. ROSE KING

    Thanks for all your good works Greg. Your style is easy to take in, your truth is bright. We do all we can to help you spread it out there.

    Blessings, prayerrs, and gratitude for good men like you that are in this world still.

    Bless.

    • Greg

      You made my day Rose King. Blessings to you as well.
      Greg

  25. Troy

    When P<P+I, you get DEBT, Surprise Surprise!
    If I can figure that out with a 12th grade Edumacation from a third world school, how many degrees do the smart people need?

    http://www.youtube.com/watch?v=bfrQ8ZutmLE

  26. Tee

    Unfortunately, I saw David Stockman on the Bill Maher show. May know economics, but pretty much clueless on the second amendment. SMH

  27. April Gardner

    Confidence is lost FIRST by the consumer, not by foreign investors in USA failed bonds. When the consumer stops buying the Fed will reconsider printing. When the consumer is angry, the FED stops printing to “Get out of Dodge” to save themselves…which is what this is all about. Well, the consumer is angry: 1 gallon of milk is $4.51 per gallon. 50% increase in 1 year. Therefore, the consumer has to stop buying. The Fed is planning to leave Dodge very soon.

  28. Jimmy

    The best interview with Davis Stockman I have heard was on the Diane Rehm Show. She let him speak and fully explain his ideas, unlike the annoying Fox news people.

    http://thedianerehmshow.org/shows/2013-04-03/david-stockman-great-deformation

  29. JR Anderson

    So Stockman’s answer is to put money in the mattress. Granted some cash on hand might be helpful but if one is really convinced the market is going to tank. How about an inverse ETF shorting the stock market? Or better yet, farm land, laying hens, firewood, wool blankets, gold & silver coins, canned or freeze dried food, good sippin whiskey, guns & ammo. emergency medical supplies. Just to mention a few items.
    If we have a currency crisis fiat money is the last thing I want to be holding

    • Greg

      JR Anderson,
      I love all your ideas except the ETF. A good investment in a crashed system is not going to be a good investment. many brokerages will become impared with counter=party risk in the next crash IMHO. Fiat currency is going to work really good for a short time so you need some but not bet the farm. Thank you for weighing in.
      Greg

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