Salient to Investors:

David Stockman said:

  • The Fed is on a jihad against retirees and savers.
  • 80 months of ZIRP has not helped the economy because we are at peak debt, with US business $12 trillion in debt, versus $10 trillion before the crisis.
  • The massive money printing has all gone to Wall Street: into stock buybacks, M&A, etc.
  • The weak US economy is due to a lack of investment over the past 15 years and uncompetitive US labor costs.
  • China’s debt has increased from $2 trillion to $28 trillion in the past 15 years and created a house of cards with enormous overcapacity and huge speculation that is beginning to deflate.
  • If the Fed raises rates unequivocally expect a long market correction: if it does not raise rates expect a short-term relief rally before a huge correction. However, if the Fed raises rates today, expect them to hedge by saying they are ‘one and done’.

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