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Greg Hunter, “Giant Fiscal Bloodbath Coming Soon - David Stockman”
Saturday, February 25, 2017 23:09
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“Giant Fiscal Bloodbath Coming Soon- David Stockman”
By Greg Hunter’s USAWatchdog.com
“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.”
Join Greg Hunter as he goes One-on-One with financial expert and best-selling author David Stockman. The author of “Trumped!” The book that predicted Donald Trump’s 2016 victory.” (There is much more in the video interview.)
You can’t pay off the debt unless you produce enough and sell it. You can’t do that with high taxation and lots of regulations, just like you can’t make money unless you first spend money. Its somewhat of a catch 22. The bottom line is all the useless stuff needs to get gutted away, since it gives incentive for business growth and at the same time shrinks the future liabilities.
Raising the debt ceiling for now is again a dead end road, but its not something you can do perpetually and be complacent. America needs to fall on the right track and stay on it.
You can’t pay off the debt unless you produce enough and sell it. You can’t do that with high taxation and lots of regulations, just like you can’t make money unless you first spend money. Its somewhat of a catch 22. The bottom line is all the useless stuff needs to get gutted away, since it gives incentive for business growth and at the same time shrinks the future liabilities.
Raising the debt ceiling for now is again a dead end road, but its not something you can do perpetually and be complacent. America needs to fall on the right track and stay on it.