Video instructions and help with filling out and completing Will Form 944 Pr Increasing

Instructions and Help about Will Form 944 Pr Increasing

Hi and welcome to the x22 report spotlight my name is Dave and today we have an interview with David Stockman now prior to the interview Skype did an update and during the interview David Stockman seemed very clear I didn't hear any ticks or pops or anything like that but when I listen to the recording I'm hearing tics and pops so something must have gone wrong with the connection between the recorder and the update with Skype so I cleaned up the ticks and pops as best I possibly can you can make out David Stockman he is very clear in what he is saying so here is the interview with David Stockman hi and welcome to the x-22 report spotlight today we have David Stockman David is a former Reagan White House budget director David is a New York Times bestseller author and his latest book is the great deformation the corruption of capitalism in America he's the creator and owner of the website David Stockman contra corner that's David Stockman is contra corner com and I am very happy to have him here on the x-22 Report spotlight welcome David glad to be with you look forward to the conversation yes now we started out this year back in January and this is when the president came out with his State of the Union and he was telling us that the economy is absolutely fine we're recovering everything's perfect and the market went down and then all of a sudden things started to improve and when I say improve when you look at the stock market it looks like things are improving but when you look at other economic indicators GDP unemployment the real unemployment and retail housing bonds we see a completely different picture what when you look at the economy at this point because a lot of people are scratching their heads wondering what happened here why is the stock market all of a sudden bouncing back a little bit and why are we at this point yeah those are all good questions first I think it was just a dead cat bounce and now they buried the cat for all practical purposes you accept he's in the process of a topping formation and the arrival of a bear market I think we're in one because the world economy is in very bad shape we're at the end of a 20 year credit bubble that has basically inflated the world economy beyond any sustainable level we're now dealing with the aftermath the day of reckoning if you will I think we're going to have a huge deflation for years to come the peak of GDP level has been achieved corporate profits are going to be under enormous pressure everywhere they're already down substantially that's why I call this a debt bomb so we just finished the fourth quarter everybody is reported now gap profits which are the real profits that you don't go to jail for if your report to the SEC came in at $86 and 50 cents a share that's down eighteen and a half percent from the peak which was a sheet in the twelve months ending in September to 14 so when profits are down eighteen and a half percent when we have a gathering global deflation happening everywhere I just came back from a 10-day trip to China and I can tell you that is the world's greatest Ponzi in this variant collapse so one of these days there is no reason why the market should be even near these levels the idea that because intubates are low therefore we should have abnormally high PE s organization rate multiples I think is a certainly that interest rates are low is that we're heading into a great global deflation you know the warning enter this huge credit deflation and that means there's danger ahead that means profits going to be under enormous pressures worldwide and therefore we probably should be valuing the stock market at an average or below average multiple not at the absurdly high level it's at today I'll just finish with this point at the price that the S&P is at this moment the markets trading 24 times Tralee Jeopardy's that is way you know over the top that is in what I would call the nosebleed section of his so put all of those things together and I think you have a market that's waiting to roll over and you have a market that's ignoring the reality that we have not had any kind of sustainable recovery except on Wall Street Main Street is struggling and I think that's maybe the issue we want to talk about further now do you see I mean bubbles maybe in real estate in student loans in the auto industry do you see any of this yeah I think we have bubbles everywhere the biggest bubble in the world is the global bond market central bank's everywhere have driven yield so low that we now have the odd situation that traders are buying bonds for appreciation and stocks for yields that's upside down you know if you look at the world market today there's 7 trillion of sovereign debt trading and negative yields the Japanese bond market is probably the best case in point everything out to 10 years is trading the negative now Japan is a retirement colony verging on bankruptcy it has you know public debt equal as people probably know two hundred forty percent of GDP impossible to sustain or to finance it yet the bond yield this morning on the 10-year Japanese bond is negative ten percent now how do you explain that you can say the world has gone mad it's irrational and in some sense that's correct in the long run but in the short line it means the traders are buying the Japanese bond because they know the Bank of Japan is.