Today David Stockman warned King World News that there is a great “unwind” ahead that will “ricochet” violently through all global financial markets. Stockman also predicted there will be a worldwide flight to gold during the coming panic which will eclipse the mania seen in gold in 1980. KWN takes Stockman’s warning very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget. Below is what Stockman had to say in this powerful and exclusive interview.
Stockman: “The markets are just irrationally thrashing around in response to a Fed that has lost control of policy. They have been working their way to the edge of a cliff, I think, for years now with this massive money printing, bond buying, and zero interest rates.
They are saying through 2015 we are not going to tighten the short-term interest rate, which means it will be zero for (a total of) six years. That is just crazy, almost lunatic….