Fiscal Bloodbath Coming this Fall-David Stockman

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Sky high stock and bond prices have former Reagan Administration White House Budget Director David Stockman worried because we are on our way to a big financial crash. Stockman explains, “Yes, absolutely.  The market is insanely valued right now.  They were trying to tag, the robo machines and day traders, they were trying to tag 2,400 on the S&P 500.  They ended up at 2,399, I think, but the point is that represents about 25 times trailing earnings for 2016.  We are at a point in the so-called recovery that has already lasted 96 months.  It’s almost the longest one in history.  What the market is saying is we have reached the point of full employment forever.  There will never be another recession or any kind of economic surprise or upset or dislocation.  The market is pricing itself for perfection for all of eternity.  This is crazy. . . . I think the market could easily drop to 1,600 or 1,300.  It could drop by 40% or even more once the fantasy ends.  When the government shows its true colors, that it’s headed for a fiscal blood bath when this crazy notion that there is going to be some Trump fiscal stimulus is put to rest once and for all.  I mean it’s not going to happen.  They can’t pass a tax cut that big without a budget resolution that incorporated $10 trillion or $15 trillion in debt over the next decade.  It’s just not going to pass Congress. . . . I think this is the greatest sucker’s rally we have ever seen.”

So, when is cold hard reality going to set in? Stockman contends, “There will be no bid for the stock once the panic sets in.  We’re going to hit an air pocket.  The S&P 500 is going to drop by hundreds and hundreds of points sometime over the next few months as we drift into this unexpected crisis. . . . I would target sometime between August and November because that’s when the rubber is going to meet the road on a debt ceiling increase when they are out of cash.  Washington is going to end up in vicious political conflict over what to do about the debt ceiling. . . . It is going to be one giant fiscal bloodbath the likes of which we have never seen.”

So, what should you do right now? Stockman says, “The main thing is get out of the markets.  These markets are unstable.  They’re rigged, and there is no reason to own stock at this point of the game.  It is so overvalued.  Maybe you can get another two or three percent up, but you are facing another 30% or 40% down.  The risk/reward is horrible. . . . The bond market is one giant bubble because the central banks have been buying all these bonds worldwide.  They’ve been buying trillions of dollars’ worth, and they are still buying a trillion dollars’ worth on an annual basis.  All that is coming to a halt.  The Fed has finally run out of dry powder.  They are out of the bond buying business.  They are even talking about the initiation of the shrinkage of their balance sheet.  That clearly needs to happen . . . . The central banks are finally getting to the end of the road.  There isn’t going to be any more money printing, and that is going to leave a giant mess on the doorstep of all the fiscal authorities.  It’s going to make the bond market a particularly dangerous place.  There is a $100 trillion global bond market, and this is the biggest bond bubble the world has ever seen.”

In closing, Stockman recommended, “Get out of the stock market. Get out of the bond market and buy some gold.”

Join Greg Hunter as he goes One-on-One with best-selling author David Stockman of DavidStockmansContraCorner.com.

(There is much more in the video interview.)

After the Interview:  

David Stockman is a prolific writer, and you can find his analysis on DavidStockmansContraCorner.com. To become a subscriber and get access to his content, click here.  To get a copy of his latest book titled “Trumped,” click here.

 

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Comments
  1. Paul ...

    Perhaps the “zombies” on Wall Street have been so smothered in nano-aluminum from the chem-trails the Deep State sprays every day … that investors brains have been coated with “tin foil hats” (right within their skulls) where it can’t be readily seen … and that is why they believe there will never be another recession or any kind of economic surprise or upset or dislocation … so they blithely go on pricing the market for perfection … and will do so for all of eternity … because they have been made crazy by the Deep States mind control techniques … and I wouldn’t put it past the Deep State to have dropped an “anti-gold virus” along with their nano-aluminum to make sure the zombie’s only desire “fiat paper” under their mattresses!!!

    • Paul ...

      How do those “still awake” combat the supposed “Geo-engineering” … which is in reality a “mind control” program? … other then shooting down the planes “spraying us” with stinger missiles … we can protect ourselves from the nano-aluminum that destroys the brain by inducing Alzheimer’s with vitamin E, vitamin C, Omega-3 , vitamin D, etc. as explained by Dr. Russell Blaylock … https://www.youtube.com/watch?v=X3IW-TGGIkO

      • Paul ...

        Sorry … neurosurgeon Dr. Russell Blaylock reveals all here … https://www.youtube.com/watch?v=X3lW-TGGlk0

      • David John Williams

        Youtube has blocked the link you posted Paul…which only made me more curious of course; I was able to find it with other round about searching. Indeed it is astonishing that there is so much resistance to this subject when one gives it due consideration. I remember the quickly evaporating con-trails as a kid, it’s certainly different now; with my own eyes I’ve seen the on off on again of the spray, I’ve seen the tic tack toe patterns and watched the trails become wispy and spread into a lingering haze. Given the scale of this conspiracy alone, it is a wonder that any of us bother to feed energy into the political melodrama… as if an election, congress, or the media, are going to help us. I’m beginning to feel like a lab rat hoping for one of the scientists to trip and do a face plant on my glass house so I might escape….but to where?

        • Paul ...

          I know how you feel Dave … they are blatantly out in the open trying to kill us our wives and our children … they are into death and enjoy it … they have been destroying our lives since Adam and Eve … we have the numbers to defeat them … that is why they need to reduce the population by suppressing us with medication in our water, drugs in our veins and chem-trals in our air … they will not go away by simply ignoring them … they are evil … and as God did once before when he threw them out of Heaven … we must do now and get them off our Earth!!

        • Flattop

          David John Williams: Here in the communist state of California the chem trails mostly run north and south. For so many years they told us it was the bark beetle that was killing the trees. Now it is believed that it the chem trails that are killing our forests. They are killing you and I, the whales, the trees, and they just keep on spraying.

      • Deanna Johnston Clark

        Lots of chemtrails here. Nothing helps shake off the cobwebs and clear our thoughts like grapefruit juice and being outdoors. ..with vitamin D.
        The usual salt and sugar ridden diet is worse….bloat, stiffness, and kinda slow witted…avoid gmo bread and grains of all sorts.
        This is nothing to play roulette with…..

        • Paul ...

          Deanna … vitamins do help to remove the nano-aluminum from our bodies … but these evil ones are also dropping “bio-engineered virus’s” to attack specific centers in our brains … it is part of their “mind control” agenda to make us into sheep that can be herded “off the land” and into mega-cities where we can be even more easily controlled!!

      • Freebreezer

        Paul – you need to up your intake of mineral water, specifically from volcanic sources … it helps eliminate aluminum from the body. I prefer Fiji water (It has a pretty flower on it), but others work just as well! http://www.dailymail.co.uk/health/article-2216608/Drinking-litre-day-mineral-water-prevent-onset-Alzheimers-flushing-aluminium.html

        • Paul ...

          Thanks Free … I’ve been drinking San Palagrino … will give Fiji a try …

          • Paul ...

            You know I was thinking about what David John Williams said above about being “a lab rat” … lets assume David’s hypothesis is right and “we actually are lab rats to some alien specie scientists” … then it makes perfect sense as to why the alien scientists want to “exterminate us” … put yourself in the aliens shoes … say you are scientist experimenting with mice (trying to make them smarter) and all of a sudden these mice create an atomic bomb? … what would you do? … probably spray them with poison chemicals to kill them all and lower their IQ … what “we mice” have to do is TELL THE ALIEN SCIENTISTS IN NO UNCERTAIN WORDS … to stop the chemical spraying and the dumbing down of our species … or We Will Set Their House On Fire … and we want you aliens to deliver to us humans plenty of cheese and manor from heaven to make up for the destruction you have already done to our farmlands … of course the aliens can take revenge and genetically engineer our house mice to make them smart enough to lite matches … so we must prepare to live on the land the way the Indians did in tee pee’s instead of wooden houses) or in concrete homes … America must not give up our nuclear weapons or our firearms otherwise we will be slaughtered just like Qudaffi and Saddam!!!

            • Paul ...

              We are lucky to have Trump in the White House right now … who knows the art of the deal … he should negotiate with the Deep States “alien scientists” who are trying to kill us by spraying poison nano- aluminum in our air, putting fluoride in our drinking water, heroin and vaccines in our veins, and sterilizing GMO virus’s in our corn … these Deep State alien scientists were also probably the ones who caused Fukushima to radioactive contaminate all our sea food in the Pacific, etc., etc. … Trump must round up these Deep State “alien scientists” and hold them hostage until they stop the killing our women and children … and if they don’t stop NUKE THE DARK SIDE OF THE MOON where they have their home base!!!

          • Freebreezer

            Paul, I am not certain, but I think San palagrino is also from a volcanic source … needs some research. But from memory a few of the Italian mineral waters are also from volcanic sources.

          • Ben

            Try some water of life. Jesus offers it freely to all who are thirsty. Me, I don’t care what they do. I will be with my savior for eternity enjoying His loving presence. They will have their place also. Behold I saw the wicked spreading himself like a green bay try and behold he was not. Fret not thyself because of evil doers neither be thou envious against the workers of iniquity for they shall soon be cut down like the grass and wither as the green herb. Trust in the Lord and do good so shalt thou dwell in the land and truly thou shalt be fed. Be still and know that I am God. I will be exalted in all the earth. And the devil that deceived them was cast into the lake of fire and brimstone, where the beast and the false prophet are, and shall be tormented day and night for ever and ever. And I saw the dead small and great, stand before God; and the books were opened: and another book was opened, which is the book of life: and the dead were judged out of those things which were written in the books, according to their works. And the sea gave up the dead which were in it; and death and hell delivered up the dead which were in them: and they were judged every man according to their works. And death and hell were cast into the lake of fire. This is the second death. And whosoever was not found written in the book of life was cast into the lake of fire. And he said unto me, It is done. I am Alpha and Omega, the beginning and the end. I will give unto him that is athirst of the fountain of the water of life freely. Oh Lord please open my eyes and cause me to thirst for you. Amen

      • Susa Glenn

        There is so much bad information out there about supplements and health care it is crazy. FYI: “food based” vitamin C supplements are made with lead and will give you heavy metal poisoning; Omega-3s and Omega-6s are TOXIC, cause cancer, and dementia. The best source for valid, factual nutrition information (complete with scientific reference sources) is: http://www.raypeat.com. Dr. Peat is a scientist, not a medical doctor. He is not selling anything. His papers are available for FREE online at his website.

      • Julie Tyra

        I’ve filmed the ummm airplanes that fly over my house in a tic tac toe pattern. My family thinks I’m crazy, but I’ve lived here over 20 years and I know which way the airport is. Many in my family can’t eat gluten and others it’s milk products. When asked if I want to donate to breast cancer or MS … I tell them QUITE LOUDLY NO, BUT I SURE AS HELL WANT TO KNOW WHY SO MANY ARE DYING FROM IT NOW IN DROVES FOR THE PAST 15 to 20 years!!
        Herbal remedies ought to be covered by our medical care. BILL GATES should be given the 23 injections an American child gets in the first 2 YEARS. I may be off by a few, but I know villagers run when they see vehicals that bring the poison.

        • Greg Hunter

          Julie,
          Those are real and most people on this site believe you. We don’t like it either. Chemtrails are Very Creepy!!
          Greg

    • Richard Taylor

      “It’s” ALWAYS coming but never here for umpteen years…sigh

      • Greg Hunter

        Richard,
        You better be ready. . . sigh.
        Greg

        • madras

          Greg, Congress has raised the debt ceiling dozens of times. Why is this time different?

          • Greg Hunter

            Madras,
            The U.S. debt is now around $20 trillion. How much longer do you think the world will let this go on before they stop accepting the USD? It’s different because the debt is so large.
            Greg

  2. Bert

    S&P just finished putting in the handle on Friday, next stop 2,600, likely a eight week winning streak begins on Monday.

  3. Terry Neelo

    I respect mr.Stockman immensely but he said everything would come to a screeching halt 3/15 and it didn’t. The can got kicked again. I’m getting tired of this. There’s a saying out west maybe down south ….”if you can’t beat’em join’em” . I’ve lost millions by NOT doing the opposite these guys say. I’m going head first into the stock market, and I’m gonna ride it till I ain’t got no more

    • Paul ...

      Terry … you better hold off a bit … as I want to make a proposal to President Trump.

      Dear President Trump … I have a suggestion for your economic advisors to consider … what I suggest is a quick fix to the fractional reserve banking system that has gotten our nation into deep trouble …
      1) you sign an Executive Order making fractional reserve banking illegal in the United States …
      2) you sign an Executive Order canceling Social Security, Medicare, Health Care, Food Stamps, etc., etc. and …
      3) sign an Executive Order issuing one(1) million dollars of Treasury credit to every legal citizen of the United States of America … total cost (320 million dollars) … total savings (trillions of dollars from the canceling all US entitlement programs)!! …
      The American people then become the lenders of credit to the banks (at a guaranteed 10% interest rate) and the banks by law can only lend out the money the people lend to them (at say a 13% rate)!!

      • Paul ...

        Of course what your one(1) million Treasury dollars are worth “in real terms” depends on the value of the fiat Federal Reserve Note at the time you get your Treasury dollars … if the Federal Reserve Note (now worth about 1 penny) falls in value to 1 one-thousand of a penny … our 1 million new treasury dollars will only have the purchasing power of about $1000 dollars at today’s valuation (or equivalently about one ounce of gold) … but still … an ounce of gold is better then nothing at all … if the government defaults!

      • JR

        cancel all the additional programs ATTACHED to social security . I paid into social security for over 50 years……my social security check is NOT an entitlement. I earned every penny

      • math teechr (not speling teechr)

        paul , 5/9/17 posts…

        one million dollars to every legal citizen…
        total cost 320 million dollars …

        better check your math unless you are saying only 320 legal citizens..
        perhaps you meant 320 trillion dollars ??????????????

  4. J. Ishak

    Macron leaks
    Here is a secret document from Macron’s files which outlines the procedures to succeed in a complete Islamazation of France and Europe. I have absolutely nothing against Muslims, but to use them as pawns to destroy societies is simply wrong.

    • Charles H

      The spread of Islam is a Catalyst, toward a One-World government. Order out of Chaos.

    • Bobby Brix

      Yes it’s the Kalergi Plan in full swing.

      Did you know Merkel won a Coudenhove-Kalergi award? Yes wants to wipe Germany off the map.

    • Paul ...

      There are deeper “inhuman alien entities” that are giving the orders to Macron to destroy human societies!! … these “off world” entities use us … to destroy ourselves … they are smart … but we can beat them at their own game!!

    • Tony Delanzo

      I agree, this can I believe, go on for ever, because who going too call them out!
      to much too lose..

  5. ross

    Bitcoin rockets while the metals get smashed. Both are a measure of fear in the market. Bitcoin cannot be manipulated while the metals are absolutely controlled by the counterfeiters of our currency. It would not surprise me that metals get smashed by another 20% because our fat controllers are in total terror of losing their enslavement of us via their debt money creation system. The collapse is unfolding before our eyes,so don’t become weak kneed and fall into their trap.

    • This sceptred isle

      Absolutely right. Bitcoin gives us some insight into what the precious metals should be doing.

  6. JCD

    Greg this explanation David gave about the swamp is why I believe America will never see another real president. There is a beast at the bottom of the swamp that consumes everyone that gets near it. Good show, really good show.

    • Paul ...

      That evil beast is the Devil himself … but he is not all powerful … simple goodness within our souls easily defeats him!!

      • JCD

        True, Paul. So few will obey this rule. Love you .. JC
        Strong delusion is his tool. He will glitter like gold when he fixes the world economy.
        China will help the beast accomplish it.

  7. MKS

    Another prediction? What happened to his March 15th even Though?

  8. Dan Mason

    Stockman’s last prediction was that all hell would break lose on March 15th! He was wrong on that. Eventually he may be right but his last appearance here predicted doomsday on March 15. He was wrong.

  9. JSmith

    Greg, Thanks for arranging these interviews. In this case, David Stockman is dangerous. Here is what we know: 1. Stockman became super bearish on the markets in 2012 — indicating that “…you’d be a fool to own anything but cash…”. Markets have soared since. 2. He has called for crashes repeatedly and been bearish on a number of the FANG stocks which have continued to rise dramatically. 3. He also originally thought that the budget crisis would begin by Memorial Day. Not happening. The point is that — yes, we are due a severe correction, but David does not know the timing and should be clearer on that point. Trump, Mnuchin, Ryan could again this year put in a budget and illustrate using their own performance scoring mechanisms a return to 3-4% GDP growth (contradicting the CBO’s more accurate forecasting). Maybe sophistry — but that is the probable angle. The economy may be slowing enough by then — that Congress may feel compelled to pass it in a moderated form (and declare victory initially — soothing the markets). Further, Yellin and the Fed will use quantitative easing again — and importantly start actively jawboning the markets about it — should there be a 5-10 percentage point correction. The Fed has also discussed buying stocks and bonds — they are capable of it — just like the ECB and Japan Central Bank In short, Neil Cavuto, Steve Mnuchin and others have disparaged Stockman’s points — because the political system can be manipulated again and again — kicking Stockman’s Hindenburg moment down the road again and again. Overall — David Stockman needs to start thinking in terms of multiple economic scenarios and balance risks and comments accordingly. Thinking in terms of singular events is dangerous. Thanks again for your great efforts, Greg, in bringing these individuals. There needs to be some level of counterpoint to ensure that people understand the truth, which is why we write.

    • Newbloomfield

      hello Greg,
      Thanks for all your hard work and great interviews.

      They key point here is that the Central Banks (banksters) have the ability to create *unlimited” amounts of digital fiat currency, which is *legal tender* and must be accepted as payment for goods and services in the nations where it is circulated by the corresponding Central Bank. The Exchange Stabilization Fund (Rob Kirby explains this so well) uses off-book fiat to buy up EVERYTHING: stocks, bonds, commodities, governments, etc etc, which means that that they MANIPULATE EVERYTHING, thus THERE ARE NO MORE MARKETS, ONLY INTERVENTIONS.

      Under these circumstances, the “debt limit” can be ignored ad infinitum. There are no limits to digital fiat — they will just keep typing zeros whenever the next “limit” is reached, etc, etc

      In my opinion, the real limit will come when China and the other industrial nations decide to stop accepting the counterfeit currency now being used to pay for the goods that the US no longer manufactures but requires (ask yourself, what do we still make here?) . . . In other words, it will require this sort of foreign intervention to actually interrupt this process.

      Hence the need for military forces to threaten everyone who refuses to go along. Will the neocon fools manage to start World War 3? Do they even understand what a nuclear war would do?

      see “What would happen if an 800-kiloton nuclear warhead detonated above midtown Manhattan?” http://thebulletin.org/what-would-happen-if-800-kiloton-nuclear-warhead-detonated-above-midtown-manhattan8023
      and “Turning a Blind Eye Towards Armageddon — US Leaders Reject Nuclear Winter Studies” https://fas.org/2017/01/turning-a-blind-eye-towards-armageddon-u-s-leaders-reject-nuclear-winter-studies/

  10. Dr Darryl Jewett

    Thanks for interviewing David Stockman, Greg. I always value his insight.

    I agree with you that the economy has already ground to a halt.

    Price of gold and silver may rise to US$20,000 an ounce but cost of exchanging (processing, selling, whatever) will be US$19,200 an ounce.

    As long as the US has laws that violate the Constitution and promote the enslavement of conscientious men, domestic or foreign, there won’t be a crash and the stock market will continue to go up.

    When the economy does finally collapse, the stock market isn’t going to drop by 40%. It’ll drop by about 99%. That day IS coming. Likely not this year but I’d estimate before 2022.

    • Tin foil hat

      “Price of gold and silver may rise to US$20,000 an ounce but cost of exchanging (processing, selling, whatever) will be US$19,200 an ounce.”
      I disagree emphatically. Gold will go into hiding if that happened.
      If the U.S. government/banks wanted to get their hands on private gold, they can confiscate, charge 99% fee for processing/exchanging(nobody will turn in their gold for any amount of fiat during hyperinflation) or they can permit business transactions (preferably over an ounce) conduct in gold and tax the process accordingly.
      With 10% transaction tax in gold, the government could confiscate approximately 65% of that gold in 10 transactions. If the squids really want the private gold, they should try their best to increase monetary velocity in gold after the reset.

  11. This sceptred Isle

    Good sign for the silver market as the record commercial short positions in the market failed to push the price near to its 2015 lows. Now a lot of the commercial short positions have been covered in a big way.

    http://kingworldnews.com/alert-commercials-just-covered-massive-number-of-silver-short-positions/

  12. Dr Darryl Jewett

    The problem with governments in the US (or anywhere for that matter) isn’t the kind. It doesn’t matter if the government is predominantly socialist, capitalist, communist, fascist or whatever. It’s the size of government that matters. People have to get past this parsing out things like Democrat and Republican, liberal and conservative, capitalism and socialism. Distinction among these terms become irrelevant with increased size of government. There is no way to “fix” governments in the US that does not include reducing the size of them by about 95%.

    • This sceptred isle

      This is one of the good things about brexit. Uk won’t have to pay for two governments, one in Westminster and one in Brussels

    • Charles H

      The problem, doctor, is verifying and vigilance – of the agency, that checks the agency, which monitors the agency, that keeps government working as it should. Humanity, corrupted by Sin, basically casts the die – to insure there is no area or depth where moral corruption cannot reach.
      Your point of ‘size of government’ is correct. It should have been spelled out in the Constitution, by percentage of population, from the beginning. But, then, enters “revision”.

    • Wayne D

      Maybe at its current elephantine stage, type of government does not matter. But kind does matter *very much* when small(er). Fascism is the boot on the face of a person. Communism denies individual property ownership. Socialism is the idealistic nonsense that egalitarianism is enforceable by legislation. Sorry, but true capitalism (which is not practiced today), while not perfect, beats the hell out of any of these others.

      Keeping government as small as possible was the primary goal of the Founding Fathers in crafting the Constitution. Franklin was aware of this in his reply, when asked what type of government the infant US was: “You have a Constitutional Republic, if you can keep it.” This was also why the 10th Amendment has reserved rights so prominently, to try to keep government small. Guess the experiment didn’t turn out very well in the end.

      I agree that this government cannot be “fixed.” But there is no way it is going to voluntarily reduce its size by any percentage because its structure is economically and politically dependent on increasing its overreach. If its current policies do not terminate all life on earth through nuclear annihilation, it too will pass. If/when it finally does, we can hope that something much better will replace what could not be fixed.

  13. Alyce

    David Stockman is one of my favorites. But I didn’t hear anything about Bitcoin!

    • Paul ...

      Bitcoin is “not money” … it is “electronic” currency … but just like “paper” currency it is fiat … as soon as the banksters develop a way to sell Bitcoin “short” you can be sure it will be manipulated by them to suit their purposes!!

  14. David John Williams

    Fascinating stuff, thanks Greg! I try to keep my hopes alive in the spirit of Bix Weir’s “Good Guys” fantasy land but unfortunately I have to agree with Paul Craig Robert’s and David Stockman’s assessment that Trump has been, at the very least, relegated. Hope for the best, brace for the worst.

  15. R Scott

    Mr. Stockman,

    Can you please tell me what is going to stop the central banks from buying Treasuries, corp. bonds and equities? In the first quarter of 17 they have injected 1000 billion of liquidity into the global markets. The FED, ECB, BOJ and SNB have no regulating authority and therefore I see no end to this game until they so choose, and without major reductions to their balance sheets I see no reason why they would so choose. Or is it possible that they are not concerned with their balance sheets, as they are not audited and can print unlimited quantities of money, and at some point they withdraw their liquidity letting the markets go so that the masters of our financial systems once again make obscene profits from another central bank manufactured crash? Repeat cycle!

    • Charles H

      In essence – they can print and post ANYTHING, any amount, to cover their butts. They will on PAPER own everything. Who can challenge that?

  16. R Scott

    PS: No more money printing or interventions? I will believe it when it happens!!

    • Arthur Barnes

      R. Scott; DITTO

    • Paul ...

      Trump just has to sign an Executive Order … “forbidding” every bank in the US from creating credit out of thin air!!