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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SummerSausage's picture

Obama/Boehner/Ryan raised the debt ceiling every year.  Obama NEVER in 8 years had a budget. NEVER.

Where was Stockman when these clowns were doubling the deficit from $10 trillion to $20 trillion, giving trillions of taxpayer money to banks for bonuses and paying $24,000 per year in gov't support via confiscated taxpayer wages to each illegal family?

hazardous77's picture

Didn't the Banks repay most, if not all, of the TARP money? 

Expat's picture

Yes and no.  Yes, because they repaid it.  No, because they repaid it with funds from other government programs.

The Myth that the government made money from the crisis is just that, a myth.  Along with the myth that the banks are viable without a government backstop.  The banks were given a few trillion in cash and guarantees, including foreign banks who also received bailouts from their own government.

No, TARP was not paid back but it was certainly incredibly profitable for the banks.

William Dorritt's picture

Hope Stockman is correct, more likely McConnell and Ryan will ram an increase throught along the Dems.


Business as usual.

pitchforksanonymous's picture
Stockman: "After March 15 Everything Will Grind To A Halt"



Wanna Bet?

Lex_Luthor's picture

What a joker this Stockman dude... They wil just print a bunch more, what is the freaking deal?

Totally_Disillusioned's picture

So Obummer left office with a surplus, 100% employment and peace in the world?  Where was the globalist Stockman then?

Erwin643's picture

Doesn't he say this every year?

OutaTime43's picture

Eventually he will get it right. It sure sells subscriptions and books though right?

SummerSausage's picture

This is the same David Stockman who went bust and was kicked out of businesses he managed for incompetence?

He had his 15 minutes of fame with Reagan - who had to take him to the woodshed then.

OutaTime43's picture

We're not burning cash at a $75 billion per month rate, we're creating it.  Money = Debt in a fiat system. You would think people would understand that fact.

That $20 bill in your pocket isn't money, it's a mini US treasury bond. A promise to pay.

hazardous77's picture

with automatic pament basically assured it is accepted as money and that is what matters. 

Until the US Treasury and or the FED dishonors the pledge, everyone accepts that those nasty cocaine infested pieces of cotton-linen paper are MONEY.


innertrader's picture

THE USA has only been doing this for 8 years.  I would guess that if you say it every year, that eventually it will happen.  I was bearish the S&P at 1440, never thinking we'd run a 10 TRILLION DEBT in eight years!!!  Thankfully I stopped trying to short the S&P.... but I never got long!  I started trading a market where you can't create even ONE with key strokes on a computer!  Screw the politics!!!


Check out the FAIRTAX, it's the single most bullish USA Bill before congress!!!  It would change everything and the politicians would loose CONTROL!!!


hazardous77's picture

The FED used instantly created 'electronic' money when it went through its save the Obama presidency by shoring up the stock and bond markets viva its 'large scale asset purchase (LSAP) programs' and then their Qualitative Easing (QE) buying over $1.5 Trillion dollars .... unless I'm mistaken, this spending added to the nation's debt while actually noet putting real dollars into the economy.... so why should the FED get repaid from the taxpayers for this funny money?

William Dorritt's picture

Close the FED and turn their buildings into Homeless shelters and Drug Rehab Centers for the people they destroyed.

doctorfixit's picture

Who cares?   Let it grind to a halt then

TK69's picture

since when has this guy gotten it right? Since when does shrinking the government equate to mass implosion? If anything the masses have been paying down their debt. Sonetimes I wonder if ths man understand banking and the creation of money.

RedBaron616's picture

Obviously, from his book, he predicted Trump would win. That alone is impressive. NOBODY is shrinking the govenrment, least of all Trump. THAT is the PROBLEM.

Vin's picture

Another time bomb planted by Hussein, the demonrats and RINOs.

RedBaron616's picture

I guess that virtually all Republicans in Congress are RINOs, according to your definition. Judging by that, I would say those GOP members of Congress actually represent that Party. After all, they were elected, were they not? News alert to you: The GOP is not conservative, nor has it been for decades. Wake up and smell the coffee.

explorer11's picture

Why doesn't Zero Hedge get an interview with David Rockefeller ?  I'm sure in 2 minutes or less Mr. Rockefeller can clarify exactly where we are on his (and his "associates") timeline for global hegemony (MONOPOLY). Listening to carnival barkers may be, from time to time, "entertaining", but let's hear from the "ring master" himself.


“We are grateful to the Washington Post, the New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost 40 years......It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is more sophisticated and prepared to march towards a world government. The supernational sovereignty of an intellectual elite and world bankers is surely preferable to the national autodetermination practiced in past centuries.”  - David Rockefeller - "Memoirs"
hazardous77's picture

The 'debt ceiling' is nothing more than an advisory mechanism to keep Congress aware of its spending.  Congress has authorized more spending than is reflected in current debt ceiling $ amount, so raising this 'ceiling' is simply an acknowledgement of authorized spending.  Why this creates so many confusing opinions from Economists and Legislators is mindboggling and quite inexplicable.               

_ArC_'s picture

Hmmm. Cliff High mention something significant to happen by March 2017! Silver Bitchez!!!

William Dorritt's picture

Great Interview.

The spineless-Republicraps in the Congress love the Govt the way it is and will push through an increase in the Debt Limit with Unanimous Votes by Both Houses.

Govt makes them rich, plus many get all the Pizza and Hot Dogs they can stand with Elite Immunity to Enjoy it with.

aloha_snakbar's picture

By summer, they will be out of cash.

How is that possible? Did the printing presses break?

katagorikal's picture

Yes, they can still print, but the debt ceiling is about the balance sheet,
so the only way to dodge it with QE4 is to cancel USTs held at the Fed. 
I believe Trump will do that next year, after Yellen is replaced. 

Expat's picture

So, if Trump continues raising the deficit he is a good guy?  so that makes Bush and Obama the greatest fucking presidents ever!

Basically, Trump is powerless and Congress is powerless in the face of the debt monster that Congress created.  Trump's solution is to raise spending and cut taxes, because that works, right?  Republicans will go along because God forbid the US economy gets fucked on their watch.  They can raise the debt limit and blame Obama.  Washington and Wall Street roll on.

It would be funny to lower tax rates back to the Reagan levels just to watch all you Reagan worshippers scream "No, wait!  Reagan had lower rates!  I am sure!  Well, I believe it so it must be true!" Lol

A few people predicted the Financial Crisis but almost no one predicted the government response to the crisis.  Can the US go bust?  Of course.  Can the US sell off all its gold and oil and coal to the Chinese?  Sure, that might buy a few years.  But Trump and the Republicans will NOT let the stock market melt down only a few months after they have taken power.  Won't happen. Here comes a new debt limit of 30 trillion.

conraddobler's picture

The matrix is created and maintained for control purposes. If it ends it will most likely be because it was scheduled to end.

There could be a flyer come out of nowhere but that will not be our controlled leadership going rouge for the people.

It's too anticipated if it were a real danger then it would be accounted for.

Nothing in politics happens by accident

It's possible this is all planned to convert to a gold standard.

Ultimately it'll suck for humanity whatever it is it's not meant to be positive

William Dorritt's picture

Great.....but where is the Gold ??????


Canada recently admitted their Gold is GONE

The USA should do the same.

stockwizard1000's picture

Seriously?  Is this an advertisement for Monex or Goldline?  Yes stockman, we know you bought a ton of gold and silver so you can hopefully 'cash in' on FAKE NEWS.  Did you forget they already raised the debt ceiling?

Appropriate headline since, apparently, Stockman missed it too.

And not only did he miss this vote (which he didn't miss) he forgot that Reagan ALSO cut taxes, raised defense spending and somehow, he DOUBLED the revenue to the IRS in 8 years.  Yes...still deficit, becuase he never cut we will see if Trump can cut spending while cutting taxes...might be the only politician in centuries with the guts to actually do that.

paracap's picture

I used to like Stockman, but lately his rant on debt, deficit, fiscal policy, etc. is getting boring. He's become a conspiracy "nut' and will go down in the rust bin with other doomsday fortune tellers like Jim Rogers, Harry Dent, Marc Faber, et al. All of these guys should be super rich from their great calls but instead are Wall Street paupers and have been wrong so long, how anyone can listen to them, is dumfounding.

paracap's picture

I used to like Stockman, but lately his rant on debt, deficit, fiscal policy, etc. is getting boring. He's become a conspiracy "nut' and will go down in the rust bin with other doomsday fortune tellers like Jim Rogers, Harry Dent, Marc Faber, et al. All of these guys should be super rich from their great calls but instead are Wall Street paupers and have been wrong so long, how anyone can listen to them, is dumfounding.

brightdayfin's picture

so, paracap, can you tell me how the national debt was created and who is the designated creditor and debtor. why doesn't most anyone know this? what does it mean to "raise the debt ceiling"? these are very very simple once you understand 1933 and 1938. you can study and learn or you can be a parrot: "conspiracy theory"...

sinbad2's picture

When your broken down, in a ditch, a thousand miles from home, Visa Platinum, with over the phone credit increases, priceless.

katagorikal's picture

I agree with the general point, but isn't the timing a bit off, with massive influx of tax payments at the April deadline?

rbianco3's picture

I am you - you are me - we are what we are

brightdayfin's picture

the question is whether trump has the courage to cancel the bankruptcy debt with the federal reserve bank.