David Stockman: The World Economy Is At An Epochal Pivot

by | Aug 13, 2018 | Headline News | 21 comments

Do you LOVE America?


    This report was originally published by Adam Taggart at PeakProsperity

    David Stockman warns that the global economy has reached an “epochal pivot”, a moment when the false prosperity created from $trillions in printed money by the world’s central banks lurches violently into reverse.

    There are few people alive who understand the global economy and its (mis)management better than David Stockman — former director of the OMB under President Reagan, former US Representative, best-selling author of The Great Deformation, and veteran financier — which is why his perspective is not to be dismissed lightly. He knows intimately how how our political and financial systems work, as well as what their vulnerabilities are.

    And Stockman thinks the top for the current asset price bubble era is in — specificially, he thinks it hit its apex in January 2018. As this “Everything Bubble” prepares to burst, Stockman estimates the risk of economic crisis is as great, if not greater than, the 2008 Great Financial Crisis because of the radical and unsustainable monetary policy expansion the central banks have pursued over the past decade.

    This has caused the prices of stocks, bonds, real estate and most other assets to appreciate at rates that have no basis in the ongoing income/cash flow of the global economy. In short, they are wildly overvalued.

    A key condition that Stockman has been waiting to see, that serves as a signal the bubble’s bursting is nigh, is the concentration of speculative capital into fewer and fewer stocks as the “good” options for investors shrink. We now clearly see this in the FAANG complex (a topic covered in detail in our recent report The FAANG-nary In The Coal Mine)

    Stockman’s main warning is that there’s no bid underneath this market — that when perception shifts from greed to fear, the bottom is much farther down than most investors realize. In his words, it’s “rigged for implosion”.

    He predicts a Great Reset is imminent. One that, for those who see it coming and take prudent action today, will offer tremendous, perhaps once-in-a-lifetime, investment opportunity once the dust settles.

    To hear Stockman’s specific predictions and warnings, listen to this 16-minute interview:

    Those interested in having the opportunity to spend an entire day with David Stockman, where he’ll present the specifics of his forecasts as well as address investor Q&A, should consider attending Peak Prosperity’s New York City Summit with him on Sep 26, 2018.

    It’s a good thing this Summit is coming up soon. We very likely do not have much time left before Stockman’s predicted Great Reset begins.

    As he puts it himself:

    You would think by now that the big thinkers and strategists of Wall Street would get the joke. Trump’s election was always a dagger aimed squarely at the egregious financial bubbles on Wall Street that have been building for 30 years at the expense of a stagnant main street economy.

    And now [America’s] no-holds barred pursuit of Trade Wars and Fiscal Debauch have guaranteed that the day of reckoning is at hand.

    In fact, it may be only days away. And this chart from the final days of the dotcom bubble may be a pretty serviceable roadmap as to why and when.

    S&P 500 2000 vs 2018


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      1. Like boarding an airplane last while announcing to the seated passengers “I hope the plane don’t crash.”

        • knowing all the while, that there’s a bomb in the baggage compartment…..there, i fixed it for you. i’ve never heard ANYTHING but good common sense from david stockman. a crash is(and has BEEN for over 10 years)imminent! every day it doesn’t happen puts U.S. closer to a worser, and worser collapse. buckle up bitchez!

        • Gold finally dipped below $1200 today the threshold point to $1194.20. Silver down to $15.02. Its come back up some, but that is what was needed to shake out the weak players. Now hopefully off the the races.

          **** PATRIOT ALERT: The CIA now wants your DNA for their data bank. Never lick an envelope or a stamp again folks, you are just asking for it. Send in your electric bill and lick the envelope and the FASCIST Utility Co’s will forward it to the CIA DHS Fusion center to add to your data base info dossier.

          NATURAL NEWS: REPORT: The U.S. intelligence community wants to use DNA as the next data storage trove

          • They can easily go through your trash and have your dna anyway.

          • TSB &BJ:

            DNA is needed to match up compatible organ transplant “donors”. It’s a big racket headquartered in Israel. Sure, BJ, they can go through every bodies trash looking for a match; or, just scan stamps. What would you do? Get a sponge. Leave the licking for other things.


      2. In my opinion, there will be a massive contraction in real estate prices and since there are so many 2nd mortages, this will become a huge issue. Additionally that home mortgage was given as collateral on other loans.

        The problem is the Millennials cannot find work that pays a decent wage and benefits to compare with Gen X and in NO WAY compares to the Boomers. A third of Millennials live with their parents at age 30.

        This means a great delay in being able to buy or afford a home. And you know that instead of saving their money that would have gone to “rents”, instead they are using that money. Now realize this is a double whammy because not only are they not saving to have the 10-20 percent down, but they are not gaining genuine success which is typically indicated by marriage and owning a home. That means you also have delayed maturity and delayed establishment in building a positive credit history.

        That means then when time is expired and these homes owned by Boomers runs out in estate sales so they can be placed in nursing homes, coupled with a rise in price due to standard inflation, that there will be insufficient American Millennials to purchase them.

        Now what typically happens under this sort of situation, and it has happened in Central America, is foreign investors buy the real estate, and that demand causes the locals to be priced out of the market. But there never could be enough demand as lots of people have foolishly enhanced their properties far and above what they can reasonably expect to get out of it. Like granite countertops in the kitchen and bathrooms. Swimming pools. Giant garages. Too many bedrooms and bathrooms at a time when family size is shrinking.

        This will cause a collapse of real estate prices but likely a flood of Chinese investors. Many Germans have been putting off buying a home as real estate prices are too high there and wages have kept up. Now with the flood of economic migrants and Muslims, I would fully expect some Germans to flee to the USA particularly in retirement.

        Some real estate in America is flat out moronic like in California. There’s no effective way to buy in regardless of how much you earn in wages. Expect fleeing from there as more sanctuary cities happen and extreme leftists take over even more than they are. It makes sense for some to cash out and parlay that money into a business and a home in the Midwest.

        • “This will cause a collapse of real estate prices but likely a flood of Chinese investors.”

          The high end real estate market topped late last year as I have indicated here for some time. I get new “price drops” on existing high end homes all over the markets I follow in my mailbox everyday.

          Those Chinese Investors have disappeared from the US & Canada and they ain’t coming back as China’s economy is about to tank and its markets burst. Additionally, new currency controls on exiting cash has frozen their ability to transfer funds abroad.

          These currency controls are a DIRECT VIOLATION of the IMF RULES governing China’s inclusion into the IMF, and one of the required conditions for the Yuan to become a “global currency” freely exchanged with other major pairs.

          It looks like that is not gonna happen now until the CCP develops a insatiable taste for CROW. 🙂

      3. Bravo Sierra….Must be a gold salesman

      4. The sky is falling the sky is falling!!!!!!!!!!!!!!!!

        • LOL.The sky’s been falling since 2007.Collapse is a process.

      5. Sarge, LOL. I wish someone could come up with a recipe for Chicken Little and I’ll try it. I’m back, everyone. Had to go to AR to check on my Dad; had a little medical issue but he’s doing better and recovering now. Everyone just keep getting all the preps you can get while you still can. It’s not looking good right now.

        • So glad to see you are caring for dad.

          We took care of ours too.

          So many don’t even care about their parents anymore.

        • “DR”
          Will keep you and yours in my prayers.
          My dad is in a nursing home because of Alzheimer’s.
          Going tonight to feed him.

          • Sarge, my Dad’s in above average health for age 86. He still lives independently, NO nursing home [THANK GOD FOR THAT]. He still has good vision and still drives. Stays active as hell. Won’t even consider sitting in a damn rocking chair. Not a whole lot of 86-year-olds like that. Anyway, I’m back at the old grind and back in my favorite site discussing the issues of the day with my favorite people,

      6. Want to help your family out? Before 1945 in America, three generations lived under one roof. The oldest owned the home and upon death deeded it to the children living with them. These parents typically either worked a small business and operated a garden. Their children grew up and often the eldest married and stayed home. This meant guarateed child and elder care as neither existed. There really were not senior citizen homes save for elderly who were old priests without family or aging veterans in the same situation as single eldery men.

        In a multigenerational home, people share responsibilities and do not attempt to own their own home unless they become well paid professionals. Instead, they help run the family business which operates out of the home.

        Americans typically move every seven years but that began as soldiers after WW2 returned and mved into tract homes in the suburbs. They were not the suburbs of today but inexpensive hokes on the outskirts. By owning a home free and clear, the sucfessive owners have a lotmore net worth and disposable income to put back into the family business.

        You can imagine how this helps ALL. Single mothers and poverty is all but eliminated. So are housing projects. Crime is vastly reduced as is drug and alcohol abuse and divorce.

        Women largely work out of the home and have more free time as the work is shared. The physical and mental health of the elderly improves and health issues are noticed sooner.

        But hey, that’s just common sense that goes back to colonial America to 1945.

      7. The problems I see with the doom and gloom, is while it is probably true, there are no real suggestions on how to survive it. They always seem to hawking some investment to “prosper” from this upcoming “Reset”.
        I’m more concerned about surviving the reset, when so many people are not prepared for the significant paper losses(and I stress paper losses) that they will incur. The basic machinery of our society will continue on, people need to eat, drink, live somewhere and will have to expend some effort to get those things.
        But the idea of getting rich using some financial slight of hand seems unlikely.
        America is lucky, in that if, necessary we are the only country in the world that can be self sufficient.

        • Actually Russia can be self sufficient and has moved aggressively in that direction since the NWO imposed sanctions on it for Russia’s annexation of Crimea.

          China is the Number One Important Nation in the world which cannot become self sufficient because it imports most of its energy; much like Japan.

          As it’s exports collapse China will become a debtor nation, and that’s a good thing. It’s China’s turn in the barrel.:-)

          • That said; the USA is deficient in certain, STRATEGIC minerals necessary for our high tech, high value added industries, which must be sourced abroad. 🙁

      8. It (the full-on, unstoppable, uncontrollable, systemic crash), will happen when it happens. All these predictions are FUBAR. “The End is Near. Stock-up on it. Make Peace with God. Buy Gold.”

      9. There has never been anywhere in the world a major stock market crash back to back. Never been a recession/depression two in a row. While typically after such major devastation there are certainly historical precedence of sector crashes. 1973 energy crisis, 1980’s banking, 1990’s tech bubble, 2008 real estate caused by Congressional laws FSB 157. Surely were are due for another 1929 but what exacerbated that was a dust bowl and food shortage nearly causing a famine. A natural disaster on top of an economic issue can cause serious issues. These major crashes come every 80-100 years and can be traced back nearly a 1,000 years as described in the book, The Fourth Turning. You can see we are in the 4th turning as shown by social/civil changes with the great grandkids of the greatest generation hence the 4th generation. Values and expectations changes about every 100 years or 4th generation cause don’t extreme change and turmoil. Basically the needs and wants of the 4th gyration change causing well established businesses to no longer be in fad. Like a fire wipes out old trees and new green shoots arise so does it in economies. Sometimes changing history and nations alike. 73m boomers, 24m gen sera, 77m millenials. Like the boomers massive locust type demand so will the millenials. From housing to food that’s a lot of people especially if the boomers live longer. We will have more people living at one time than ever before and massively demand will cause serious inflation. Small towns will see real estate prices jump 500% (25 yr time horizon) and nearly catch up with city averages as many millenials start buying home but can barely afford one often times farther out in tieriary locations. Demand will increase there and push up prices providing needed revenues to smaller outlying cities. Tech has made it easy to live 65 miles from a city and still be connected. And Amazon and internet And UPS provide all the city does…..prepare for change. Profit from knowledge and being prepared for change. The next 10 years should show what the new trends are and it’s not “tiny Houses”. That’s a fad.

      10. Arm up and stock up as the main weapon will be food. Someone who is starving will agree to anything for food. We are just nine meals away from anarchy.

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