Two weeks after
David Stockman warned that "the market is apparently pricing in a
huge Trump stimulus. But if you just look at the real world out there, the only
thing that's going to happen is a fiscal bloodbath and a White House train wreck
like never before in U.S. history" and exclaimed that, when looking at markets,
"
what's going on today is complete insanity" he is
back with another interview, this time with
Greg Hunter of USAWatchdog in which he, once again warns, that a
giant fiscal bloodbatch is coming soon, and urges listeners to pay especially
close attention to the March 15, 2017 debt ceiling deadling, at which point
everything could "grind to a halt."
As
Greg Hunter writes, former Reagan Administration White House
Budget Director David Stockman says financial pain is a mathematical certainty.
Stockman explains, “I think we are likely to have more of a fiscal bloodbath
rather than fiscal stimulus. Unfortunately for Donald Trump, not only did the
public vote the establishment out, they left on his doorstep the inheritance of
30 years of debt build-up and a fiscal policy that’s been really reckless in the
extreme. People would like to think he’s the second coming of Ronald Reagan and
we are going to have morning in America. Unfortunately, I don’t think it looks
that promising because
Trump is inheriting a mess that pales
into insignificance what we had to deal with in January of 1981 when I joined
the Reagan White House as Budget Director.”
So, can the Trump bump in the stock market keep going? Stockman,
who wrote a book titled “Trumped” predicting a Trump victory in 2016, says, “I
don’t think there is a snowball’s chance in the hot place that’s going to
happen. This is delusional. This is the greatest suckers’
rally of all time. It is based on pure hopium and not any analysis at
all as what it will take to push through a big tax cut. Donald Trump is in a
trap. Today the debt is $20 trillion. It’s 106% of GDP. . . .Trump is inheriting a built-in deficit of $10 trillion over the next
decade under current policies that are built in. Yet, he wants more
defense spending, not less. He wants drastic sweeping tax cuts for corporations
and individuals. He wants to spend more money on border security and law
enforcement. He’s going to do more for the veterans. He wants this big
trillion dollar infrastructure program. You put all that together and it’s
madness. It doesn’t even begin to add up, and it won’t happen
when you are struggling with the $10 trillion of debt that’s coming down the
pike and the $20 trillion that’s already on the books.”
Then, Stockman drops this bomb and says:
“I think what people are missing is this date,
March 15th 2017. That’s the day that this debt ceiling
holiday that Obama and Boehner put together right before the last election in
October of 2015. That holiday expires. The debt ceiling will freeze
in at $20 trillion. It will then be law. It will be a hard stop. The Treasury
will have roughly $200 billion in cash. We are burning cash at a $75 billion a
month rate. By summer, they will be out of cash. Then we
will be in the mother of all debt ceiling crises. Everything will grind to a
halt. I think we will have a government shutdown. There will not be Obama Care
repeal and replace. There will be no tax cut. There will be no infrastructure
stimulus. There will be just one giant fiscal bloodbath over a debt ceiling
that has to be increased and no one wants to vote
for.”
Stockman also predicts very positive price moves for gold and
silver as a result of the coming budget calamity.
There is much more in the video interview below in
which Greg Hunter goes One-on-One with David
Stockman.
Source: zerohedge.com
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