“We have had a Fed engineered serial bubble, that has created the appearance of wealth, that has caused people to consume beyond their means through borrowing, and that has flushed the income and wealth of our society up to the top, as a result of the Fed turning the financial markets into a casino. These are pure casinos, they are not capital markets, they are not adding to the productive capacity of our economy, they simply are a bunch of robots trading with each other by the millisecond as a result of the Fed giving them zero cost overnight money, and giving them all kinds of hand signals on what to front-run.” It is almost as if Stockman reads Zero Hedge… And he continues: “The Fed is destroying prosperity by funding demand that we can’t support with earnings and productions, causing massive current accounts deficits and the flow of funds overseas and the build up in China, OPEC and Korea of massive dollar reserves which is a totally unsustainable, unsupportable system, and we are coming near the edge of where that can continue to remain stable.”
Basically, things are out of balance. It already doesn’t look so stable in Greece where they are now 6 months into their austerity and where it is 6 months since the banks got bailed out. People don’t, and wont forget that, especially as the austerity measures gradually make people poorer and million dollar bankers bonuses are announced for the same crooks who helped create the crisis. I’m no fan of welfare, and I think a lot of the austerity measures are needed, but it seems there are some severe double standards and imbalances going on.