Former Reagan Budget Director: “After March 15 Everything Will Grind to a Halt”


One critical problem is that President Trump is inheriting a deficit of about $10 billion over the next decade due to policies that are firmly in place. Stockman lays out his scenario for a fiscal bloodbath in stark detail:

“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 be no Obamacare repeal and replace. There will be no tax cut. There will be no infrastructure stimulus. There will be just one great fiscal bloodbath over a debt ceiling that has to be increased and no one wants to vote for.”

In a small glimmer of good news, Stockman thinks gold and silver will have very positive price moves as a result of the debt ceiling crisis.

Watch Stockman’s full interview with Greg Hunter here:

Source: Zero Hedge

 



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