Today David Stockman spoke with King World News about the escalating crisis in Ukraine, gold, and a terrifying “financial and economic volcano.” KWN takes Stockman’s warnings 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 and help save the United States from collapse. Below is what Stockman had to say in part I of a series of powerful interviews that will be released today.
Eric King: “David, gold is up $20 today and I couldn’t help but notice that the U.S. Dollar Index is beginning to lose its grip on the 80 level -- we’ve fallen to 79.5 on that index.”
Stockman: “I think there is a lot of insanity loose in the world, particularly in Ukraine. What the U.S. government and the Western European capitals are doing is stupid and dangerous.
“If you can read a map, you can see we have no dog in that hunt. ...The point is that investors are beginning to realize that the alleged adults who are running the governments in Western Europe and the United States may not know what they are doing after all, and are beginning to take leave of their senses.
This is just nonsense -- it’s the Warfare State machinery cranking up and threatening silly things like opening up the (U.S.) Strategic Petroleum Reserve. That is crazy. That was built up with tens of billions of dollars over decades for a true emergency, when some cataclysmic event might happen in the global oil transportation system.
It was not meant to be some sort of tool in a game of diplomatic tit for tat, which is exactly what’s going on today. In fact, the pittance of oil the Obama White House proposes to release amounts to 80 minutes of global use. This is amateur hour.
So when you see that kind of action it’s fair to ask, ‘How stable is this whole environment?’ And when there is instability, there is a bid for gold, and that’s what’s going on.”
Eric King: “David, do you view the Ukrainian situation as Western aggression?”
Stockman: “Yes. I view it as a consequence of the utterly stupid decision made in the 1990s to enhance and expand NATO into the former so-called captive nations of eastern Europe, and to push it right up to the border of Russia. Once the Soviet Union collapsed, once most of their nuclear stockpiles were disengaged or dismantled, and the region fell into the disorder it had for a decade or longer, what was the point of expanding NATO? It could only be an irritant.
... You wonder what these people in Washington do when they are getting their briefing papers. Don’t they read the history (of Ukraine)? Don’t they look at the map? Don’t they realize that the United States is practically bankrupt? Don’t they understand we should be getting out of other people's business?”
Stockman also issued this warning: “I don’t understand why the bulls on Wall Street can never catch their breath and think about these things long enough to realize none of this is stable. China is just one massive speculative bubble that one of these days is going to blow big-time.
They’ve created a financial and economic volcano and it’s only a matter of time before it blows. Maybe we are getting a little venting out of the side of the volcano now as obviously some people got caught on the wrong side of copper and are having to liquidate their positions. But clearly it’s evidence of how shaky the foundation of the whole global financial system is, and it is cause for great worry, even alarm.”
IMPORTANT - This is only a small portion of what Stockman had to say in his extraordinary audio interview. The KWN audio interview with David Stockman discussing the Ukraine crisis, financial instability, gold, the end game and much more is available now and you can listen to it by CLICKING HERE.