Stockman Slams Trump Administration's Budget Projections As "Fantasy"

Tyler Durden's picture

Authored by Craig Wilson via The Daily Reckoning,

David Stockman joined Bloomberg Markets to discuss President Donald Trump’s latest budget projections. After the White House and current Office of Management and Budget director Mick Mulvaney released various statements on the budget proposal viability conversations already began within the GOP and Congress.

When prompted by host David Gura over his thoughts, even reflecting on former Treasury Secretary Summers comments that the budget is ludicrously optimistic, David Stockman did not mince words speaking on Washington.

“I think it is fantasy land. They have been kicking the can so long that the magnitude of the problem is almost insuperable. They just imagine options, they imagine policy mixes that have no chance in the world of happening.”


“Not only does this budget project all of this GDP, which can’t happen, it also says we’re going to have what they’ve laid out as a $7.5 trillion gross tax cut over ten years. They’ve identified 15% on the corporate rate, 15% on the pass through and doubled the standard deduction along with all of the rest of the proposals. Yet they say they’re going to pay for it with 100% offset so that there’s no revenue loss.”

During the conversation the Bloomberg host then inserted that the budget offers a “double count” with reference to the math completed by the Administration. Stockman remarked, “Sure, I’m all for a broader base, lower rates – that’s what Reagan did in 1986. But how are you going to come with $7.5 trillion of offsets, when you have the K-Street lobbyists lined up from one end of the swamp to the other. The big dollars are really beyond reach.”

“The biggest loophole you could close is the health exclusion – that’s $200 billion a year. The House Republicans backed out on that during the Obamacare repeal. The next biggest one is $180 billion which is pensions and IRA’s. Do you think they’re going to take pensions and IRA’s away?”


“The third biggest one is capital gains and dividends treated on a preferential basis. When you put all the Wall Street lobbyists, along with the rest of them, on the case they’re not going to do that either.”


“My point is, they pretend to have a tax cut that they haven’t paid for that produces GDP that’s out of this world beyond what’s possible. They end up with budget numbers that are so unrealistic and such a complete fantasy that they might as well not even bother.”

Stockman then urged all that together with the fact that, “they pretend that you can raise defense, veteran spending and have a trillion dollar infrastructure program. That you can ring-fence social security and medicare which is $1.8 trillion, not cutting them a dime.”

“Essentially, they believe you can take $500 billion of a $4 trillion budget and cut the hell out of that little corner and leave all the rest to either grow or stay the same while believing it adds up. It doesn’t.”

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SenselessPanic's picture

he looks like another libtard to me

Looney's picture


Trump should start wearing a Hugh Hefner Robe to all public events.

I ain’t too eager to see his low-hanging balls, but if it fucks up with the Libtards’ heads, I might be able to survive that visual.  ;-)


FrozenGoodz's picture

Tell us something we don't know Stockman ... trumpanzees still strung out on koolaid

nmewn's picture


And I can tell you it's habit forming after eight fucking years of Obama. 

NoDebt's picture

David, we know the reality already.  Please don't fuck with the fantasy.


NidStyles's picture

Considering the previous guy didn't even bother having a budget....

nmewn's picture

Dontcha jus luuuv how the progs got all fiscally conservative after their gal Hillary lost and Obama beat feet to Tahiti...on a save the fucking planet...or sumpin  ;-)

shovelhead's picture

He had to go stomp down those rising waters.

I guess it was easier to do in Tahiti.

Stuck on Zero's picture

Stockman forgets that we can add a 25% VAT to every imported item. That's a lot of revenue and a lot more jobs and fewer people on welfare. By sealing the border we can save trillions on welfare and prison expenses. If only we'd do the right thing ...

NidStyles's picture

They don't want Nationalists to have resources, that is the core of their strategy. No platform, no resources, and no community. That is why they bring in the invaders.

This is Jewry strategy 101.

whosyerdaddy's picture

I think it was a mutually reciprocal suckfest with Richard Branson.

Pure Evil's picture

Makes you wonder how many children were raped and then sacrificed to their god Molok.

roadhazard's picture

At this point in Obamas Presidency Hannity was ranting about the choice of mustard Obama picked for his hamburger. I'm serious.

And this just in, Faux Nooze can no longer keep a straight face and has dropped, "Fair and Balanced" as their motto.

nmewn's picture

You will let me know when Rachel MadCow gets another copy of Trump's tax returns won't you?  ;-)

Homie's picture

Trumptards are too infatuated with golden boy

What used to be insuperable is suddenly doable with a pumpkin head at the helm

Stuck on Zero's picture

Hey Homie. Don't confuse ZHers with Trumptards.

marathonman's picture

The Fed will monetize the new debt.  The Ponzi must continue... or maybe the Fed has determined that tanking the economy on Donald's head is the best course of action.  Turn the Congress to Democrat control in 2018 due to crappy economic results.  'Alleged' Russian election interference won't have anything on the Fed when theyre done with Trump.

Pure Evil's picture

The economy is already in the shitter. Was flushed by the previous administration and already being processed down at the sewage treatment plant.

The only thing left to do is crash the Wall Street casino and let the financial elite run off with grandma's retirement nest egg.

Laddie's picture

Stockman has been pretty reasonable as an economist who had been in Reagan administration.
As ZH had documented over the years the entire economic system of the USSA has been a Ponzi scheme. Sooner or later it will come to a halt. It must, fundamental economic principles can only be manipulated for a limited time.

Stanley Fischer: A Dual U.S./Israeli Citizen and Pro-Israel Activist as Vice-Chair of the Fed January 5, 2014 by Kevin MacDonald PhD emeritus professor of psychology at California State University - Long Beach

847328_3527's picture

Definitely coming to a boiling point.Not even zero down mortgages and 50 year auto loans can save this economy anymore.

Trump has a real shit pie on his hands. I do not envy him esp when you add in all the unnecesasy static from the left and the neocons.

Laddie's picture

The scary thing is that America is NOT the America of the Great it is a multi-culti hell and it won't be pleasant, add in a government that wants Whitey gone and...

Why Every Warrior Should Own a Firearm

Behold, I Teach You the Amerikaner

slightlyskeptical's picture

Only sane way to fix it, is to fix the money system by abolishing debt based money and fractional reserve banking, eliminate all income taxation, and let the government simply print what they need to operate within certian caps. Fund it all with a gold based system with a fixed price for gold and based on a unit of gold in exchange for a unit of currency. As number of currency units expand, the fixed price of gold would expand as well. 

giorgioorwell's picture

If you think Stockman is a libtard you need your head examined

VWAndy's picture

 As have all of them going back to the uncivil war.

Homie's picture

What does Stockman know?

Everyone knows we have happy endings every day

That should be good enough

847328_3527's picture

I see tons of houses for sale these days. Three years ago you had to wait 6 months or more for a house.


So many unemployed that not even zero down loans can help the RE market anymore. 8 years of Soweeto-nomics has consequences. No wonder hois pet, the wookie has dat "feeling of hopelessness"'s because her hateful husband created it!

roadhazard's picture

"No man, it's a beautiful bridge and it's going to be there."

NoDebt's picture

Exactly.  That's exactly fucking right.


rejected's picture

Oddball,,, one of my favorite characters played by Sutherland.

shaggythelma's picture

Talk about someone who served at the govenment teet!  David Stockman is a relic of a time long gone.  All of his private efforts since 2000 have ended in bankruptcy or litigation.  His success before then was because of cushy post government jobs at firms that had substantial government contracts.  

brushhog's picture

Alot of companies failed under Stockman's leadership. He was found guilty of some financial crimes while serving as the CEO. Now he makes a living as a doom forecaster.

Jack Oliver's picture

He has a lot to be GLOOMY about !!

shovelhead's picture

Stockman, as usual, is right.

Why? Because he knows (and uses) REAL arithmetic.

Still, if Trump can eliminate some of this idiotic FedGov., it will feel a little bit  better when it all blows up. What happens after that is anyone's guess. I guess the stuff you hold in your hand will be fine while the unicorn farts vaporize back to where they came from.

Somebody's holding an awful lot of unicorn farts and thinking it's wealth.

It ain't.

Yars Revenge's picture

Stockman is anti-MAGA

shovelhead's picture

Arithmetic is Anti MAGA.

Even Michelangelo can't plaster and paint over a ceiling of bullshit.

dogballs's picture

Amen bro. Just 'cuz anti-MAGA don't swallow the BS load don't mean they don't like suckin' Wall Street cock.

Herodotus's picture

America cannot be great again until it goes through a bankruptcy proceeding.

WTFUD's picture

Been dazed & confused for so long it's not true
Wanted a swamp drainer, never bargained for you
Lots of people talk few of them know
Soul of the Money-Changers was created below . . .


Mzhen's picture

Stockman was a failure in the Reagan administration.  It was obvious at the time that his policies and ideas didn't make sense.  He doesn't really merit a resurgence of his career.

NoWayJose's picture

Just look at the national debt under Stockman. His own projections were no better!

BigCumulusClouds's picture

To the contrary, the failure was the head of the DOD (forgot his name, begins with a W). That guy had no governor on his spending. Why RWR put that little prick there I will never know.

slightlyskeptical's picture

You want to make America great again?

It all starts with the money system, can't really change much until you change that.

We need to print our own money, and abandon the debt based money system along with the fractional reserve banking system.

Let the government print their budget and end all income taxation. Puts caps in on how much budget can increase each year. With the elimination of fractional reserve banking the economy is going to need considerable money supply increases and letting Govt print the budget, covers that need.

The question i have for zero - hedgers is, are you willing to let the government help those in need with basic sustenance and health care, if there are no taxes for you to pay as a result?

silverer's picture

Well hell, they've been stacking up this crap since about 1983. Both sides of the aisle. Of course it can't be fixed. Congress through policy directed the entire nation off a cliff. And off the cliff you shall go.

ZeroBeek's picture

America will never be great again 

johnjkiii's picture

Stockman is right on the fundamentals but he has been saying this since the S&P was 1200 and is becoming a crank. I'm no bull but I know bullshit when I smell it. Opinions are worth what you pay for them but 99% are overpriced. The object of the game is to make money and if you listened to his crap for 6 or 7 years you mssed a 100% move. Follow the cash! It hasn't paid a moments notice to David.