I think that it’s funny that David Stockman, Ronald Reagan’s former budget chief, starts his column with this sentence:
“This morning’s market is more erratic than Claire Danes off her lithium.”
Seems a little gratuitously mean. Accurate (?) perhaps but mean. But that is one of the things we like about the guy. His acid.
That he is also an unabashed critic of the global economic insanity which is driven by the world’s central banks is another reason we like him. He says what often needs to be said. And he gets to say it on Bloomberg.
(From David Stockman’s Contra Corner)
So let the price discovery begin. The global petroleum complex is already there. So is iron ore, copper and the most of the central bank bloated world of industrial commodities. The EM currencies are not far behind. Nor is the $9 trillion of vastly over-valued off-shore debt that was denominated in dollars and sold to yield hungry speculators.
Take a trip to Istanbul. Ask how the skyline of construction cranes will find the dollars to pay off the debt they have poured into still empty towers.
For that matter, can the Japanese monetary madhouse be far behind? Have not even the Shanghai market punters figured out that China’s $26 trillion tower of debt is already swaying precariously in the global financial winds?