Stockman explains our current "crazy economics"

David Stockman: This Is a Giant Ponzi Scheme, It's Just Debt on Top of More Debt 

See short interview with Stockman about the greatest bubble the world has ever seen

Après nous le deluge

Bank of Japan Joins Fed, ECB in Record Stimulus

By Brendan Murray & Scott Lanman

The world’s monetary floodgates are swinging wide open.
After watching Ben S. Bernanke take unprecedented steps for four years to rebound from the worst recession since the Great Depression, the Bank of Japan (8301) is signaling that the Federal Reserve’s full-throttle approach to stimulus is the way to end 15 years of deflation.
New BOJ Governor Haruhiko Kuroda’s move this week to embark on record easing means the world’s four biggest developed-market monetary authorities -- the BOJ, the Fed, the European Central Bank and the Bank of England -- are aligned in their commitments to spur growth and return their economies to full strength.
“This is unprecedented on many levels,” said Pippa Malmgren, president and founder of Principalis Asset Management LLP in London and a former financial-market adviser to President George W. Bush. “Not only do you have the most in terms of size of economy or number of central banks, but the effort is a record effort. We’ve never seen such unconventional methods used to create as much inflation as possible.”
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Comment: The real tragedy is that there is no more a place to hide. The flood will drown us all.

Japan on the wild side

BOJ to pump $1.4 trillion into economy in unprecedented stimulus
(Reuters) - The Bank of Japan unleashed the world's most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.
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Comment: Thank you, Mr Haruhiko, for your demonstration that economic policy is actually utter madness.

Krugman calls him cranky

Better listen to what David Stockman has to say.
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State-Wrecked

State-Wrecked: The Corruption of Capitalism in America

David Stockman

"... So the Main Street economy is failing while Washington is piling a soaring debt burden on our descendants, unable to rein in either the warfare state or the welfare state or raise the taxes needed to pay the nation’s bills. By default, the Fed has resorted to a radical, uncharted spree of money printing. But the flood of liquidity, instead of spurring banks to lend and corporations to spend, has stayed trapped in the canyons of Wall Street, where it is inflating yet another unsustainable bubble.

When it bursts, there will be no new round of bailouts like the ones the banks got in 2008. Instead, America will descend into an era of zero-sum austerity and virulent political conflict, extinguishing even today’s feeble remnants of economic growth.

THIS dyspeptic prospect results from the fact that we are now state-wrecked. With only brief interruptions, we’ve had eight decades of increasingly frenetic fiscal and monetary policy activism intended to counter the cyclical bumps and grinds of the free market and its purported tendency to underproduce jobs and economic output. The toll has been heavy..."

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Comment: In the end it wasn't Soviet nukes that wiped out America, but the meltdown came from within, led by the most secret weapon that America's enemies ever have had: US top economists such as Bernanke.