A Must-Read: Stockman’s New Book, ‘The Great Deformation’

March 30, 2013

**Free Article**

Former congressman and Reagan budget director David Stockman recently published a hard hitting and timely book. Stockman is a subscriber to my “Actionables” and kindly sent me an advanced copy of his work, “The Great Deformation” due to be released April 2.  His portrayal of the hijacking of the U.S. by a “posse” of corrupt banksters, politicians and their stooges in the media and elsewhere is extraordinary.

I’m sure my readers have noticed the pattern of how these individuals get recycled into various posts and positions of power, from K Street and Wall Street to public office to the banking sector and back again, until they’re finally replaced with some new “associate” or “capo” from the same mob-like cesspool. Lone voices that speak up against them are typically muffled, ignored or shuttled aside. The corruptos/posse play the two party system like a fiddle and are still firmly in control.

It’s a system of negative selection. I call it the “the sistema,” and Stockman calls it “the posse.” Although our descriptors, such as these, are different, the way we see the world is so much the same that the book became an emotional read for me. I’m genuinely grateful  that someone of influence  finally had the fortitude to say what needs to be said. He uses his insight into economics and politics to make a powerful argument. He also provides a tremendous amount of highly informative historical context, which lends further insight into how things could or should be, rather than the revisionist drivel spewed by the sistema as hollow rationales.

Especially terrific about the book is its combination of top-notch scholarship and pointed criticism of the villains, who Stockman explicitly names. He takes off  his gloves with these scoundrels, and that’s exactly as it should be.  While he has a special ire for Henry Paulson and Ben Bernanke (and modern central banking in general), he picks off the rest of the posse gang, too, one by one like a rogue’s gallery.

The book aptly illustrates the consequences of a bubble economy. Stockman describes the fall out,the damage, the maladjustments and deformations create by the bubble dujours, and how the posse uses them as a means to exploit and control the capital markets and economy to benefit their kleptocracy.  He brilliantly connects the dots as to why the economy is functioning poorly and paints a picture of a future that will only become worse if the remaining wealth and reserves of the nation are continuously plundered by a crony capitalist sistema.

Obviously, I can’t recommend this book enough, and am very interested in the public reaction to it.  Don’t be intimidated by its size — about 700 pages in all. If you’re not up for that level of commitment, the must-read sections are:  Part I – The Blackberry Panic of 2008; Part IV – The Age of Bubble Finance; and Part V – The End of Free Markets and Democracy. As it is one of my purposes to influence as many people to read the book as  possible, there will be a permanent book order tab from Amazon on my blog’s home page.


Winter Actionables Has Moved: A New Site, A New Subscription Offer

March 27, 2013

Dear Subscriber:

My blog has a new home. I’ve moved to WinterActionables.comPlease register at my new site and subscribe to my three-month “Free Trial” offer no later than April 15, 2013. At the end of the three-month “Free Trial” period, automatic billing will begin at the rate of $35 per quarter.

That’s right. I’m rolling back subscription prices to just $35 per quarter! In addition to my regular blog, the new site offers a subscriber Forum that I hope will encourage live discussions. Your subscription will also include four monthly Radio Free Wall Street podcasts, on which I am a panelist and Lee Adler the host. If you are already a full RFWS subscriber, nothing will change for you, and you can continue to access all of the podcasts via WallStreetExaminer as before.

To clarify, if getting more for less doesn’t appeal to you (lol), you are not obligated to continue beyond the “Free Trial” period. You can simply unsubscribe before the trial period ends and you will not be billed.

I will no longer be posting at this site, but there will be some non password protected material available at my new primary site.

- Russ Winter


Ominous Positioning In The S&P 500 Futures, Gold And The Dollar

March 23, 2013

My article, Ominous positioning in the S&P 500 futures, Gold and Dollar available at Seeking Alpha.

Gold Short Bubble for the Paper Manipulators: The Final Day at Kursk

February 23, 2013

The rest of the article is available at Seeking Alpha.

Other than the bottom in gold back in late 2008, the managed-money funds rarely make big bets against gold — until now. During the last three weeks, it appears that these funds played a major role in the rote 8 a.m. “selling” in gold futures. The impression was that there was selling. In fact, these managed-money funds have ramped up a record naked short bet against POG. It should be noted that when managed money funds made smaller bets in 2008, 2009, July 2010 and July 2011, gold had some substantial subsequent runs. The hedge funds had already greatly reduced holdings in the GLD ETF (see chart) at the end of 2012. They are now further reduced to a bare minimum, completely abandoning this trade.


Follow the Bouncing Ball: Serious Misreporting of the Sequester News

February 17, 2013

“There won’t be any easy off-ramps on this one. The days of 11th-hour negotiations are over.” -Sen. Mitch McConnell, GOP Senate Minority Leader

Increasingly, I feel as if I am Alice in Wonderland and have serious concerns about the fifth estate. One has to be a Sherlock Homes to get to the bottom of the sequester story, so little wonder that the wool is being pulled over the eyes of the American people. Thus, the online public comments in these news stories don’t even seem to even understand the numbers or math being proposed. I am posting this so that others can cross-check how the sequester counterplan from the Senate Democrats is being falsely reported.

Read more »

Concerns Raised Over Fed Distortions: Or How Do They Bail Out A Bailout?

February 14, 2013

Article available at Seeking Alpha.

When you finally get a headline and story like the following out of a mainstream financial outlet like Bloomberg, it means the Fed has trouble: “Fed Joining in Alarm over Distortion it Enabled.”

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