David Stockman: a "Fiscal Bloodbath" to Hit this Summer by libertyweekly

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David Stockman: a "Fiscal Bloodbath" to Hit this Summer
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<p>Former Reagan White House Budget Director David Stockman is predicting a "fiscal bloodbath" to be unleashed upon the United States starting March 15th.</p>
<p>According to Stockman, March 15th, 2017 is when the debt ceiling holiday will freeze at $20 trillion. The expert reasons that, with such strong opposition to Donald Trump, there is no political energy in Washington to raise the debt ceiling any higher. Stockman has been ringing warning bells in several recent interviews.</p>
<p>After the debt ceiling freezes, the government will have to rely on Treasury reserves to fund its operation. According to Stockman, the Treasury currently holds about $200 billion in cash. Since the government spends $75 billion a month, our treasury reserves will run out over&nbsp;the summer.</p>
<p>Stockman claims that the Federal Reserve will have to raise interest rates on March 15th. There will be no more stimulus.&nbsp;Without any stimulus, the mountain of&nbsp;hope upon which the markets are perched will crumble into dust.</p>
<p>After the markets collapse and the Treasury runs out of money, Stockman says that Trump will receive&nbsp;the authority to allocate spending. This will set the stage for an immense political showdown that Stockman describes as a political "maelstrom."</p>
<p>Personally, I don't see the Federal Reserve just allowing this to happen. While David Stockman insists that the Fed will raise rates in March, it was unclear how much he thinks they will be raised. Currently, March rate hike odds <a href="http://www.zerohedge.com/news/2017-03-02/march-rate-hike-odds-reach-90">are locked in at 90%</a>&nbsp;for another small rate hike of 25 basis points.</p>
<p>While the FOMC could raise rates in March, it is too little, too late. Interest rates have been at or near zero for the past 100 months. If Congress is unable to raise the debt ceiling, I would predict that Yellen will step in with QE4. In fact, Deutsche Bank analysts have reported that <a href="http://www.zerohedge.com/news/2017-03-03/fed-preparing-1-trillion-qe-next-recession-deutsche">the Fed has primed&nbsp;$1 trillion dollars for QE4</a>&nbsp;to be used during the next recession.</p>
<p>Additionally, I do not think&nbsp;Congress would fail to raise the debt ceiling. While establishment opposition to Trump is deep-seated, I don't see the elites sinking the whole ship unless it is part of their plan. If sinking the ship is part of the grand plan, I think they would jack rates up substantially and let the asset bubble collapse once their investments have been protected.</p>
<p>While I am an amateur "Fed watcher," and no financial expert, I remain skeptical of David Stockman's predicted scenario. Since Janet Yellen just finished giving a speech on <a href="https://www.nytimes.com/2017/03/03/business/economy/federal-reserve-interest-rates.html">March's expected rate hike</a>, I assume that Peter Schiff will be coming out with a podcast episode later on this afternoon, which I will link <a href="https://www.youtube.com/watch?v=l5bazTund44&amp;t=311s">here</a>.</p>
<p>If you would like to watch David Stockman's dire prediction, you may find his interview with <a href="http://usawatchdog.com/">USAwatchdog.com</a> below:</p>
<p>https://www.youtube.com/watch?v=7xgNncFHAng</p>
<p>David Stockman has most recently released a book: <em>Trumped! A Nation on the Brink of Ruin...and How to Bring It Back.</em> You can pick up a copy from my Amazon Affiliate link below.&nbsp;</p>
<p>&nbsp;https://www.amazon.com/gp/product/1621291847/ref=as_li_ss_il?ie=UTF8&amp;linkCode=li2&amp;tag=libert07-20&amp;linkId=e0fc2a6cc7e8bb2e90753dca43449122</p>
<p>Stockman also runs&nbsp;<a href="http://davidstockmanscontracorner.com/">http://davidstockmanscontracorner.com/</a>--a subscription blog which offers some free content.</p>
<p>That just about does it for today's content. Have yourselves a great week. Thanks for stopping by&nbsp;<em>Liberty Weekly</em>.&nbsp;</p>
<p>Subscribe to my email list at <a href="http://libertyweekly.net">http://libertyweekly.net</a> or follow me on Steemit at <a href="https://steemit.com/@libertyweekly">https://steemit.com/@libertyweekly</a><br>
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vote details (240)
@maxvespia9 ·
So, we will go bankrupt?
Gotta buy more gold and get rid of these useless federal reserve notes...
Thanks for the great article!
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@libertyweekly ·
Anything can happen. 
I personally agree with Peter Schiff that the Fed would hyperinflate the dollar rather than let this bubble pop.
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@maxvespia9 ·
That would still be a bad outcome though...
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@johncampbell ·
Agreed!!
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