Stockman: "After March 15 Everything Will Grind To A Halt"

Tyler Durden's picture

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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
RafterManFMJ's picture

There will be thanks in the tweets.

booboo's picture

Another game of debt ceiling chicken, here's to hoping neither one swerves, let's get it on, force the president to get out a meat cleaver and start hacking away at their pet pigs. Squeal like a pig congress.

falak pema's picture

CAesar dies! 

ANy premonition there?

whatamaroon's picture

Even before Trump got inaugurated, the fucking RINO traitors were talking a 'continual resolution' which means spending is on auto pilot. No spending reduction what so ever!

Danedog's picture

Lay off 20 % of many departments starting with the new hires.

Arrow4Truth's picture

Hell leave the new hires alone. Get rid of those that have grazed at the public trough for 10+ years.

EndOfDayExit's picture

I don't buy the drama. The debt ceiling will be raised, first, because it can be raised, and, second, because all hell will break loose if it is not raised. Everything else is just politcal theatre.

DirkDiggler11's picture

Just like King World News, Jim Rogers, Dr Doom Fabre, Simeon Black, and a long list of others Stockman is correct and will eventually get his Market call correct, if he and the rest haven't bankrupted you first...

Rufus Temblor's picture

Good insight.  One day Stockman will be so right.  In the meantime there are margin calls and expiring puts.

847328_3527's picture

I have heard this same story about crashes over an dover and yet here we are...another high on Monday I'm sure.

While the middle class truggles to put food on the table and squeeze 0.01% yield on their savings acocunts, the Elite on Wall Street and The Hillbama Establishment in DC feast on filet mignon.

I hope trump can do more for the middle class. Maybe cut taxes, repeal the tax penalty in the disastrous Sowetocare, increase the yields on savings accounts, etc.

 

Wulfkind's picture

And pray tell.....just HOW is one man......Lord High Maximus Orange Julius ( May His Name Be Praised Forever ) going to INCREASE YIELDS ON SAVINGS RATES when those are benchmark more or less with FED FUNDS RATES ??????????

 

If you see an INCREASE in your passbook savings account.....then you will see a crash on Wall Street and our National Deficit EXPLODE.   Not to mention an unwinding of 100's of TRILLIONS of dollars in derivative.

 

Yeah...Drumpf increasing savings yields.......that will CERTAINLY MAGA........LOL !!!!!!!!!!!!

Mustafa Kemal's picture

Im gonna have to get some of that salve. Being a DJ Trump salve, it will be perfect for my

Drain the swamp butthurt

Rapproachment with Russia butthurt

Yog Soggoth's picture

Oh. Almost forgot you. You will not be forgotten.

Yog Soggoth's picture

No, they only eat filet mignon when the symptons of Kuru start. I think this is what croseus was talking about. Mike Tyson bites ear off real video

jm's picture

Dude. They'll just raise the debt ceiling. Again and again and again.

They are politicians. The only thing they see is the short term fix and the House isn't screwing the White House now the Obama is out. Stockman is still looking for solutions which HE didn't put in place when he worked in the government.

I don't understand his angle for spewing this stuff over and over.

Is he just stroking his irrelevant ego, trying to get on CNBC?
Is he a part of some think-tank That incentivizes him to ignore the obvious and throw this stale claptrap?

RafterManFMJ's picture

Stop fucking around and raise the debt ceiling to 500 trillion dollars. Problem. Solved.

Conax's picture

Ok,  what about next year?

order66's picture

But there's printers.............so there's that.

Rufus Temblor's picture

Ceiling, Schmeeling. What's a couple of trillion to a bunch of taxpaying suckers, half of whom voted to destroy the country? Paul Ryan will add a debt ceiling increase on the back of a "Save the Puppies" bill.

kuwa mzuri's picture

Might you be Rufus Temblor Graves of Sharp, Texas?  

deimos178's picture

Grind to a halt? He says that like it is a bad thing. Beware the Ides of March.

cowdiddly's picture

Nonsense Dave, I've watched these dog and pony drama queen episodes a thousand times.

Old Wile E. Coyote never catches the roadrunner, Controlicus Printicus no matter how many Acme orders he places. Beep- Beep

One Ton Lady's picture

Ronald Reagan the great conservative as some may call him was a complete fraud and a actor (like them all of course)  a tool of the zionists , made by zionists for zionists.   

 

Greg Hunter is a very pro Israel , Zionist creep.  So forget that joker.  a total waste of oxygen. 

JLee2027's picture

So, pro-Israel is bad?  Get lost you Jew hater.

UnclePhester's picture

Zionist = Israel First  = TRAITOR, unless you are an Israeli in Israel.

 

 

That concept is too tough for stupid folks to grasp.

Consuelo's picture

 

 

'Pro-Israel' being bad all depends on just what precisely 'Pro-Israel' means...

 

If it means my tax-dollars going to fund chaos in the Middle East and my relatives dying or being maimed as proxy-fighters for their differences with the Arab State, well then Yes, it is bad.   Very Bad indeed.

FreeShitter's picture

After march 15th we will have another ATH.....stockman has never been right.

CHoward's picture

"Okay...but besides that...everything is awesome, right?"

MuffDiver69's picture

Come on...Its the same dance....good chance it drops 3-5% on a glide path and it will bust up if corporate taxes go to 20%....its easy to see this....we haven't had fundamentals tied to tangible profits driving any of this shit for moons...Call me in two years if jobs pick up, because it ain't happening soon any fucking ways, but it sure beats the Clinton option of taxes...

debtor of last resort's picture

The debt ceiling? We crashed through it many years ago.

What's nice though, people will laugh at the circus and Trump approval will rise even more.

"You think we're stupid huh?" Even Wallmart ebt niggers will get it.

Grow the fuck up.

BadDog's picture

What is this law you speak of (unsheathing two handed broad sword)?

Beans's picture

Well, for starters you could save a helluva lot of money by getting rid of about 17 of the 19 or so letter agencies. Fire the lot of them and streamline the whole thing into two agencies at most = external security and internal security. Could do similar with the Pentagon, DoD and the various branches of the military.

Miffed Microbiologist's picture

You are delightfully pragmatic but naive. When has government ever reduced itself? Kind of like asking a malignant tumor to stop growing. At some point you must destroy it or it will kill you.

Miffed

CRM114's picture

$64,000 Question is,will the jobs from bringing manufacturing home ramp up quickly enough to soak up the tens of millions you've just made unemployed from the Government?

 

..and the answer is no,because you have to get rid of all the reg's first.

Beans's picture

Fair enough, I hear you. So the answer is to just keep on racking up the "mother of all unpayable debts" then, I guess? 

any_mouse's picture

East Germany and Soviet Union obsessed with security and bureaucracy did not have multiple intelligence directorates.

Military security is different than external security.

Thus three three letter agencies. "not the CIA", "not the FBI", and "not the Defense Intelligence Agency"

Problem at this point is every government agency has been captured by deep state and is out of control.

Get control of black budgets.
Stop deep entanglement with Mossad.
Stop the opium business.
Get out of the media.

Or just hit the large red reset button.

Beans's picture

Agreed. Zionism/Mossad/Deep State is the noose strangling your necks. Come to think of it, how much of America's debt could be redeuced by simply cutting the amount of funding and aid which goes to Israel? I imagine it would be quite a large sum. 

HalEPeno's picture

"I imagine"?  Are you really that intellectually lazy?  It is 3 billion annually out of a 50 billion dlr foreign aid budget, or .075% of the 4 trillion dlr federal budget.  It took me literally 75 seconds to find that information.

Beans's picture

I don't believe that for a second. Is this including all forms of aid, both military and non military? And let's not forget the annual costs to America for fighting Israels wars in Afghanistan, Iraq, Iran, Syria and Ukraine. Starting to add up quite a bit now, isn't it.

Trucker Glock's picture

And let's not forget that .gov borrows that money and pays interest on it.

Colonel's picture

In other words we the people.

Shropshire Lad's picture

And then cut off Israel and close 160 foreign bases ....Stop financing terrorists from the Ukraine to the Middle East.

atthelake's picture

They want to harm Trump and help Killary. Making us miserable during Trump's administration is the easiest and best way to do it, especially, now, that Kill is running, again, in 2020.

It has to be in the next 4 years, while Trump is president.

FreeShitter's picture

Most have been miserable since 2001. Its all a charade dude....they are the same. 

Bula_Vinaka's picture

What a joke!

 

This is not the first time debt ceiling got hit!

 

 

Tom Green Swedish's picture

Well yea because we hit the magic number of 20 trillion thats why.  What he is trying to say is we didn't want Trump in office.