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 ...