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.

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TheRealBilboBaggins's picture

Neal Howe could have been interviewed for this article as well.

Stockman has been predicting other people's failures ever since his stint in the Reagan admin. I don't think I will read anything else he says the rest of my life.

Tom Green Swedish's picture

Thesis to everything on Zerohedge:

Wall Street and the Fed, along with the media, intelligence community and military industrial complex are intentionally destroying the USA from within in order to get paid and all us sheeple should do is just buy gold to save our lives because the rest of the world is accumulating it. And we are just now realizing this because we have Trump.   Yes, very believeable.

So what is the result? We all shrivel up and die because we printed too much money? OK whatever. 

FreeShitter's picture

We get a massive haircut when the dollar is no longe rthe world's ponzi currency and get even a worse outcome -> SDR. Just goto the IMF's website.

Tom Green Swedish's picture

Massive haircut would be welcome. Money is overrated. It would prevent all the slime from entering our land because they want to make bank. We have enough guns to fend off the crap.

Duc888's picture

 

 

Slash Fedgov employees by 75%.  Get rid of bloat and Gov parasites.  Problem solved.  Whole Departments need to be shut down.  Run a bare necessity Constitutional government.

Yellow Zookaninnie's picture

Are you a wounded veteran? Guess not.

Tom Green Swedish's picture

One major problem. All your tax dollars go to three things. Social Security, Medicare the Military and Education. Unless you want to live Mexi Style of course.

mcl2177's picture

Cut Social and Medicare tell everyone over 60 to go F themselves the people younger than you didn't vote to fund your retirement

Croesus's picture

@ mcl2177:

I'm also in the group that pays into social entitlement programs that I'll never collect on.

That said, have a heart. The old folks got sold up the river too, and you'll be their age someday.

Warthog777's picture

"The old folks got sold up the river too".

WE GOT ROBBED AT GUNPOINT!

and then the fuckers in congress stole the money and gave it away for votes......

THIS IS MORE DIVIDE AND CONQUER.

LET'S STOP BLAMING THE VICTIMS.

HOW ABOUT THEY GIVE ME BACK ALL THE MONEY I PAID IN.  THEY CAN KEEP THE INTEREST!

 

Warthog777's picture

"The old folks got sold up the river too".

WE GOT ROBBED AT GUNPOINT!

and then the fuckers in congress stole the money and gave it away for votes......

THIS IS MORE DIVIDE AND CONQUER.

LET'S STOP BLAMING THE VICTIMS.

HOW ABOUT THEY GIVE ME BACK ALL THE MONEY I PAID IN.  THEY CAN KEEP THE INTEREST!

 

michelp's picture

"One major problem. All your tax dollars go to three things. Social Security, Medicare the Military and Education."

You count like a government employee.

What you listed are FOUR things.

m.

johand inmywallet's picture

Turn everything back over to the states except for defence and, gut everything else.

Unfortunately, it adds another how many millions of unemployed.

Oh, hell, another world war will get rid of most of those unemployed.

Soylent green the rest.

Seriously, there is only one way out and it's a butt load of hurt.

DeaconPews's picture

The beginning of the end was when they allowed Government bureaucratic hacks to unionize.

Insomnant's picture

"Bi-oastal elites" and "flyover America." Just be honest and call them Jews and Whites, respectively.

goddammoron's picture

Libtards have not yet begun to fight.  

Trump and his tards have not yet begun to live with the consequences of their monkey policy let alone inevitable major crisis' and acts of god that are surely coming our way.

Keep on fighting (well Trumptards don't really fight, they run, to bunkers) dudes!  This is hilarious.  Thanks.

Trumptards = Libtards.

 

cowdiddly's picture

I have noticed an uncanny foreshadowing relationship between a trolls posts and the avatar name he choses for himself over the years. Strangest thing.

Mustafa Kemal's picture

Interesting, given your name and avatar

Umh's picture

Spelling challenged? Differently disabled? Damn confused?

Croesus's picture

@ goddammoron:

You certainly picked the right user name, it fits you like a glove.

RougeUnderwriter's picture

Treasuries will be refi'd with 50 and 100 year maturities a 1 % or less or even negative before any of this happens

Ignorance is bliss's picture

Really? Who is going to buy those? The Fed?

Beans's picture

Hehe The "Belgians" really have been pigging out on US treasuries, havn't they ;)  

RawPawg's picture

the key words here are...

"once again warns"

Yellow Zookaninnie's picture

Our war with China, or Iran, or Russia, in May, will emergency-trump all debt ceilings.

Tom Green Swedish's picture

There is a story by about a man named Blackbeard. He was so feared by all that the meer presence of his ships sent people running and throwing in the towel at the threat of fear.  No resistance at all, until one day somebody took him down. Fear not because Blackbeard really couldn't fight for shit. End of story.

Beans's picture

Well, if that's the case then you'd best choose your opponent wisely. My advice would be to go for either the Chinks or the Ragheads but under no circumstances to go for the Ruskies. You might have a shot with the first two but then again the Ruskies may well have tacit or formal agreements to help them out in the event of a fight so I'm not too sure about that either. But what I can tell you is, the Ruskies will shock the bejeesus out of you in the event you picked them for a fight.

This won't end well.

Colonel's picture

Considering the whole petro dollar thing, Iran looks like a good bet. Definitely some country with oil.

Son of Captain Nemo's picture

IT'S IN THE AIR!... (https://www.youtube.com/watch?v=YkADj0TPrJA)

I've been playin it since 2008 and it's amazing they got 8 years out of it!

VWAndy's picture

 All hail the fiat magic.

OccamsCrazor's picture

Stockman's so full of shit his eyes are turning brown.

TabakLover's picture

one of my 87 yo dads favorite sayings!

Son of Captain Nemo's picture

"Stockman's so full of shit his eyes are turning brown."

Oh yeah...

You ain't seen the last half of this year yet MDB!

semperfi's picture

what a load of shit

when was the last time anything ground to a halt?

what a dumbass

stockman, don't you know we "print" up whatever amount is needed to keep the fascist elites in power ?

do some research dude

Wildchemist's picture

We'll know fairly quickly how wrong Stockman is. That's one good thing.

kenny500c's picture

Under Obama we added $10 trillion of debt, got about nothing and bond yields went down.

So why can't we add another $10 trillion under Trump? 

No reason at all.

Bank_sters's picture

Bush doubled it, obama doubled it and now we are looking at 40 trillion after 8 years of Trump.  A deviation will lead to a credit collapse.  Period.   Take a look at what the small deviation in debt issuance had in 2009.  And then they printed and printed and printed.   Japan, Europe, China, the US all created more and more debt...

From a past zerohedger's post:

These fuckers are going to print hard enough to wake the dead. They'll print like mo'fos, print like mad men, print like fly pimps. Print until their eyes bleed.

They will print via the swaps, via bank bailouts and mergers, via fixed Treasury yields, via real honest-to-God negative interest rates, via loans to banks on no collateral, via payroll tax reductions, and in the end via actual fiat paper instruments which they might very well drop in bails from actual mutherfucking helicopters.

They will not give two figs what anyone thinks.

Here is why.

Because this is the Goddamned end of it my friend. There is no accounting beyond this point. There will be no history of it. No one to take notes of rates of exchange, or of the graft and violence, nobody to worry about the deficit or the GDP or the national debt of any nation large or small under the blazing Goddamned sun.

End. Of. It. Does anyone bitch about how Rome totally debased their coinage at the end? Hell no. But whoever did it had enough to hand and grabbed some land with a nice vineyard and sat back and waited for the Middle Ages to start 700 years further on.

And that's what a singularity is about. Anything that passes through is striped of all meaning. Nothing we think is important now will remain so beyond the event horizon. Nobody will remember, nobody will write about it, nobody will be held to any standard. Ever for evar.

So yeah, they'll print like the mad crazed terrorists they are. Because they have nothing to lose, and maybe something to gain. Maybe a dollar. Maybe a day. Maybe a slim chance to escape with some of the loot. Whatever the fuck advantage they see in it, for themselves and their elite crap wanking buddies, they will full-on-full-time-fucking do it to advantage.

Watch for it, Dawg. It's totally on this time, on like Donkey Kong. And when the dust is settled in a generation hence it's going to have become  another unbelievable episode among the ages of men.

Lucky Leprachaun's picture

I've been hearing this for ten years. I think the madness can go on forever.

brushhog's picture

Exactly. As long as all the central banks continue to work together to buy each other's debt, and we all believe the dollar has value, then it can go on literally forever. Why not? Im yet to hear a reason why it couldnt.

JamesBond's picture

Reserve currencies seem to have built in termination dates. So all this debt will eventually hit the proverbial fan.

juggalo1's picture

Fortunately Trump cut debt by 12B in his first month.  No need to ever raise the debt ceiling again!

TomGa's picture

Halt?! Yeah, right.   Hell, the first twenty trillion was just a warm-up for things to come.

JailBanksters's picture

They say the first hundred trillion is the hardest and after that it gets easier.

 

JailBanksters's picture

I'll bet, at 2 minutes to midnight they will impose a temporary extension of the unlimited credit card.

If they don't the US will default again. You might think they would do that just because it's trump, but a default isn't just bad for trump, it would be bad for everyone. They would be terminating their own free ride on the gravy train. I just can't see all of Congress going Hari-Kari, it would be good to see, but it's just not going to happen.

MASTER OF UNIVERSE's picture

David Stockman may now get in line to lick my balls in deference to my Grumpy Marxist leftie intellect & intelligence over his own because members of Congress will most assuredly vote for a Debt Ceiling Increase so that they, and their degenerate progeny, can still keep swimming in the Public Trough just like Ronald 'McDonald' Reagan did when he hired Stockman to do the back stroke in the Public Trough.

 

Note: I will allow David Stockman to get near the front of the line to lick my balls in deference to my intellect & intelligence over his own because he is one of the worst Reaganite shills & a true Republican't ass kisser fuckwad twat-for-brains jerkoff I have ever encountered on Z/H.

 

Note #2: I can write, Tyler(s). And I can spell too, Tyler(s). And I don't start sentences with the word 'But', and I can spell 'bloodbath' consistently without error in composition, k.

 

just sayin'

Lost in translation's picture

< y a w n >

Stockman: still pissed off at the central planners. Because he's not the Central Planner.