David Stockman Warns Washington Just "Crossed The Fiscal Rubicon"

Authored by Adam Dick via The Ron Paul Institute for Peace & Prosperity,

Watch out for a recession and more trouble for American stocks ahead, warned investing, economy, and politics writer David Stockman in a Monday interview at Fox Business. Hearing Stockman’s informative analysis about that alone should be reason enough for people concerned about the economic outlook in America or their investments to watch the interview. But, Stockman also provides in the interview compelling analysis of the role United States military spending will play in causing coming economic problems in America while failing to make Americans any safer.

Stockman, who was director of the Office of Management and Budget in the Ronald Reagan administration, says DC politicians who say military spending needed to be increased in the spending bill passed by Congress and signed by President Donald Trump on Friday are “full of it.”

Instead of having been too low, Stockman says there is already a “crazy” amount of US military spending, noting that such spending far exceeds that of nations — Stockman mentions China, Russia, and Iran — that are labeled as “so-called hostiles.”

The fact that the US military is “conducting seven wars that we don’t need to have,” explains Stockman, is why there are the troubles with military readiness that people are using to justify further military spending increases.

You want a military that is actually ready to defend America, then “get out of these wars” from Somalia to Syria to Afghanistan, argues Stockman. What is happening in these places, argues Stockman, “is not a threat to the interests of the United States.”

Stockman also explains that the desire for more military spending among some DC politicians led them to agree to increase spending in other areas as well to ensure passage of the spending bill.

“Well, here’s the scandal of it,” comments Stockman, “to get $82 billion for a defense increase that they don’t need — no way do they need, they agreed to give the Democrats $65 billion more of domestic spending that we absolutely can’t afford.”

The combined “warfare state” and “welfare state” spending, Stockman says, threatens “to kill the financial outlook of this country.”

And all this military spending is not even making Americans safer or improving conditions where the US intervenes militarily. As an example, Stockman talks about ISIS. He explains that “we created ISIS” through the US government’s devastation of Iraq via the Iraq War followed by ISIS taking up the weapons the US military left behind.

The lesson, says Stockman, a member the advisory board for the Ron Paul Institute for Peace and Prosperity, is that “we should stop intervening everywhere in the world.”

Watch Stockman’s complete interview here:

Comments

A Sentinel D.T.Barnum Tue, 02/13/2018 - 22:22 Permalink

I freaking love stockman. He’s been my hero for 30 years for a reason.

the one mistake he made, but it might have been calculated, was to tell the stinking vultures oozing around the table with “maria “ that “we created isis.” 

We did, but it’s too much for the mic cheerleader and broker worshipping crowd to hear said aloud.

I’m surprised they didn’t cut him off sooner.

In reply to by D.T.Barnum

RU4Au Give Me Some Truth Tue, 02/13/2018 - 23:16 Permalink

They won't let him on for much longer, that is, when he is proven right by events.

Maria really needs to do some reading. She could start with "The New Confessions of an Economic Hitman". Then she would realize what Stockman is talking about regarding war. The only reason we are in these wars is because the right people profit from it. Then she could try, "The Octopus of Global Control" to get the history of it all.

In reply to by Give Me Some Truth

TeethVillage88s Delving Eye Tue, 02/13/2018 - 22:15 Permalink

No one listened to David Stockman for 25 years.

- This is Proof that TPTB don't care about anyone, and shut out any opposition to their Agenda, it is not just ideology, TPTB shut down, castrate, Libel, and blackmail our up and coming politicians... systemic fraud... systemic conspiracy - RICO

- Stockman is a good voice, he points out principals, he has done Great Work, he is a big influence on Libertarians,... David Stockman Deserves better than this... he should get ZH to put up funds, and attend his funeral if he should die in 2018-2038.

- Stockman is missing solutions from his TV speeches, his short TC interviews, = Stockman Fails the drunk test, I am drumk but intelligent and his narrative fails to provide systemic solutions to specific federal agencies!

- Boom!

- but yes!  The Great Deformation is great work, reference, doctoral study!

 

In reply to by Delving Eye

NoDebt max2205 Tue, 02/13/2018 - 21:40 Permalink

Dave.  DAVE!  

Jezuz, bro, we already crossed "way too fucking late" at least eight exits back with respect to the national debt.  It's been over since long before you wrote this article.  You can go broke owing $1 or $100Trillion.  It's functionally no different.  Sit back and enjoy the fucking show.

Hell, Dave, you were there when we went off the fiscal rails in the Reagan era, I would think you would be used to it by now.

 

In reply to by max2205

Endgame Napoleon D.T.Barnum Tue, 02/13/2018 - 23:02 Permalink

He isn’t wrong about most of it. In fact, he is one of the few who includes all of the different sides of the economic quagmire. Unless something changes, the US is heading toward the Greek tin cup, and most of our prospective, global lenders won’t be that nice to us. They are not even that nice now, much less if we go off the fiscal cliff. He is right that the military personnel need to be invested in to ensure readiness, but that does not require training via real-life war. I don’t agree that America is responsible for religious extremism in the ME, but when used in that region, the deployment of US weaponry always has unintended consequences. 

 

In reply to by D.T.Barnum

RU4Au Endgame Napoleon Wed, 02/14/2018 - 00:32 Permalink

He didn't say that we were responsible for the religeous extremeism in the Middle East, rather we went in with guns a blazin' and upset a balance of power and stasis that had been working for a long time. The majority Sunni were knocked down and the minority Shia  and Kurds got a bunch of weapons we left laying around which empowered them to cause a little mayhem. Hello Isis. You are right about unintended consequences.

I don't think Maria and the others had any idea where Stockman was coming from in that discussion. She starts with a premis that the war is necessary and the great American leadership noble in the endeavor and therefore needs to be funded, damn efficiencies. Stockman knows the war is there to promote corporate takeover of resources for profit by destabilizing governments that won't play the game Washington orders. The war is not in the nation's interest and we don't need to be there. Policy is directed to the government by the corporations for the corporate benefit. The military becomes the publicly funded hit squad for the private enterprise.

In reply to by Endgame Napoleon

Jung max2205 Tue, 02/13/2018 - 21:50 Permalink

What he says is right and it follows the scheming of the Zionist plan for a New World Order with, of course, the Zionists rulers at the top. SO far the US follows them neatly and obediently as there is no organization that will go against what they want. They are too strong.

In reply to by max2205

booboo Tue, 02/13/2018 - 21:35 Permalink

We have been crossing financial Rubicons since I can remember.

Back in 08 Denninger said they would NEVER monetize the debt and if they tried it would result in an immediate blow up in the bond market. WRONG

ebworthen Tue, 02/13/2018 - 21:36 Permalink

Debt doesn't matter anymore.

Race to the bottom, the FED can force others to default first, until the U.S. loses Reserve Currency Status.

Stockman is spot-on about the pointless wars in the Middle East and the M.I.C. not needing more money, Maria B. does not get it - she is still lost in the Matrix.

If $11+ Trillion of gravy for Wall Street 2008-Present is good, then so is that much or more for every Tax Payer and Legal Citizen paying into the Ponzi (not to mention investing in the Casino Markets).

Any talk of cutting S.S. or Medicare will be met with torches, then pitchforks, then guillotines and the hanging tree.

The Spice must flow!

8iron Tue, 02/13/2018 - 21:36 Permalink

Lease Camp Pendleton property.  15 miles of beach and mountains. Free unexploded ordinace for liberals.  There David just paid the fucking debt.  No one cares. 

MK ULTRA Alpha 8iron Tue, 02/13/2018 - 22:04 Permalink

We're winning, we can't take winning at this rate, Stockman needs to be placed on suicide watch. 

Defense spending is driving a boom in manufacturing. Millions are returning to factories for the great Trump military build up. 

Social spending increase was needed to sell the military build up and to move DACA off the budget stage, it was politics and it doesn't hurt to keep the slaves fed while the economy begins to GROW AT FIVE PERCENT.

We haven't seen growth like this in decades, the employment growth numbers, GDP growth rate, capex spending growth, oil production growth,and this was before the new budget and new tax reform act.

In the coming super boom economy, will Stockman's doom rant become obsolete?

 

In reply to by 8iron

D.T.Barnum Tue, 02/13/2018 - 21:44 Permalink

this was a good video.  Stockman dug in his heels and told it like it was.  Wouldn't be surprised if they don't invite him on that show again, but it'd be worth it.