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 onl