David Stockman: The coming budget crisis and financial collapse in the US

[ThePythonicCow]

.
David Stockman, former Budget Directory under Ronald Reagan in the early 1980's, is back with another great interview, this time with Greg Hunter.

Unlike in the early 1980's, when the US had relatively little debt compared to its economic power, today debt is piled higher and deeper, at all levels. Furthermore, existing budgetary commitments will continue to increase the US Federal debt at a trillion dollars a year, for the forseeable future.

Those (including the gamblers playing the US stock markets) who expect Trump's plans to lower taxes while spending massively on rebuilding America's infrastructure are living in fantasy land.

This fantasy will come to an end soon. A key date in ending it will be March 15th, 2017, just two and a half weeks from now. On that date, the agreement made between former President Obama and the US Congress to ignore the debt ceiling and keep spending will end. On that date, a budget crisis will become evident to all. Stockman does not expect President Trump to sign into law whatever Congress puts on his desk. Rather major divisions within Congress, plus Trump's willingness to play hardball negotiations, and the intractable nature of the problems facing the US, will lead to a US federal budget crisis that rages through the summer, and that leads to a major collapse of the financial markets.

Greg Hunter has posted this interview on his USAWatchDog.com (http://usawatchdog.com/giant-fiscal-bloodbath-coming-soon-david-stockman/) website.

Here's some of what Greg Hunter writes, regarding this interview:

===


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.
===

And here's the entire interview - well worth a listen:

7xgNncFHAng

[Honesty]

..........

[Latti]

What our government has been doing is insane. I don't know how the madness has lasted this long. I've been expecting a total collapse for the last decade, but they keep kicking the can down the road.

I'm not looking forward to a collapse, but I'd rather have a reset now than leave it for our grandchildren.

[TrumanCash]

Wouldn't it be nice if they just said the US does not have to honor the so-called debt to banksters due to fraud, unconstitutionality, fake news, etc, etc. The reset could be as simple as raising a collective middle finger to the banksters and start issuing US currency instead of Federal Reserve Auditing Unit Denominations, aka FRAUDs.

All this talk about the debt this and the debt that, blah, blah, blah, is absolute absurdity given that it is all an illusion. But this is seldom mentioned even in the alt media. There is no debt. In fact, the international banksters need to return the illusion of "money" to the embezzled countries, i.e., give up their wealth and take up a job at a minimum wage job at chain burger joint. (But I'm not exactly sure how one would return an illusion.)

I remember watching a Eustace Mullins video and he said something like the Federal Reserve Act provided that the gov could buy it out and close the account for $144 million. Does anyone here know anything about that?

[Justplain]

Even if the american national debt is an illusion, the congress will stop having cash to spend because the illusion has reached its limit. There have been several of these debt ceiling crises over the past several decades, and the brinksmanship rarely results in anything useful in spending reduction.

If Trump can use this crisis to dismantle the fed, then it would be worth the trauma. Monetary policy theory states that money supply should be increased to fund an expanding economy. If the fed is eliminated, for they currently issue the money supply, then increased money supply would go to the US treasury and could be used to pay down debt. That would help this situation.

Funny that Trump being a business man cant figure out that his campaign promises, as listed in the OP, dont add up financially. Oh, i forgot, he's gone bankrupt atleast once. Remember bush jr had never managed a profitable business before taking office, and what a result that produced? Perhaps Trump hasnt got the chops to get the job done, most of his recent time before politics was spent firing fake apprentices on a tv reality gong show. Now maybe we have a whitehouse reality gong show? Oh, but that's nothing new, now is it?

[TrumanCash]

Wouldn't it be nice if they just said the US does not have to honor the so-called debt to banksters due to fraud, unconstitutionality, fake news, etc, etc. The reset could be as simple as raising a collective middle finger to the banksters and start issuing US currency instead of Federal Reserve Auditing Unit Denominations, aka FRAUDs.

All this talk about the debt this and the debt that, blah, blah, blah, is absolute absurdity given that it is all an illusion. But this is seldom mentioned even in the alt media. There is no debt. In fact, the international banksters need to return the illusion of "money" to the embezzled countries, i.e., give up their wealth and take up a job at a minimum wage job at chain burger joint. (But I'm not exactly sure how one would return an illusion.)

I remember watching a Eustace Mullins video and he said something like the Federal Reserve Act provided that the gov could buy it out and close the account for $144 million. Does anyone here know anything about that?

I found the Eustace Mullins interview wherein he states that the Federal Reserve Act can be repealed and ended by paying $144 million. He states that at about 42:00 in the video.


http://www.youtube.com/watch?v=Er3xPXb7aQw

[thunder24]

Wouldn't it be nice if they just said the US does not have to honor the so-called debt to banksters due to fraud, unconstitutionality, fake news, etc, etc. The reset could be as simple as raising a collective middle finger to the banksters and start issuing US currency instead of Federal Reserve Auditing Unit Denominations, aka FRAUDs.

All this talk about the debt this and the debt that, blah, blah, blah, is absolute absurdity given that it is all an illusion. But this is seldom mentioned even in the alt media. There is no debt. In fact, the international banksters need to return the illusion of "money" to the embezzled countries, i.e., give up their wealth and take up a job at a minimum wage job at chain burger joint. (But I'm not exactly sure how one would return an illusion.)

I remember watching a Eustace Mullins video and he said something like the Federal Reserve Act provided that the gov could buy it out and close the account for $144 million. Does anyone here know anything about that?

I found the Eustace Mullins interview wherein he states that the Federal Reserve Act can be repealed and ended by paying $144 million. He states that at about 42:00 in the video.


http://www.youtube.com/watch?v=Er3xPXb7aQw


THE SOLUTION:

Currently all we do is exchange FED money (interest attached) for real U.S. money (interestfree) dollar for dollar as Kennedy tried to do. We should not be required to pay interest on our own currency. According to Benjamin Franklin,
this was one of the primary reasons we fought the Revolutionary War. Today we are still fighting the same family of bankers (Ref.).

The U.S. Government can buy back the FED at any time for $450 million (per Congressional record). The U.S. Treasury could then collect all the profit on our money instead of the 300 original shareholders of the FED. The $4 trillion
of U.S. debt could be exchanged dollar for dollar with U.S. noninterest bearing currency when the debt becomes due. There would be no inflation because there would be no additional currency in circulation. Personal income tax could be cut if we bought back the FED and therefore, the economy would expand.

According to the Constitution, Congress is to control the creation of money, keeping the amount of inflation or deflation in check. If Congress isn't doing their job, they should be voted out of office. Unfortunately, voters can't vote the FED or its Chairman out of office. If the government has a deficit, we could handle it as Lincoln and Kennedy did. Print money and circulate it into the economy, but this
time interest-free.

Today the FED, through foreign banks, owns much of our debt and therefore controls us. The FED will cease to exist as taxpayers become informed and tell
other taxpayers. The news media and Congress will have no choice but to meet the demands of grass roots America. (Ref.)
http://www.libertynewsonline.com/article_301_31461.php

I wonder what the difference in the amount is about between the page i linked and Eustace