shtfplan.com / Mac Slavo / February 26th, 2017
Though many financial pundits make the argument that the U.S. economy is booming as a result of millions of new jobs, a healthy housing market and record stock market levels, former Reagan budget director David Stockman says that the next few months will see fiscal, financial and economic upheaval.
In a recent interview with Greg Hunter’s USA Watchdog, Stockman argues that President Trump’s stimulus packages will be ground to a halt as the U.S. debt ceiling is once again breached in March. The resulting uncertainty could lead to widespread panic on Wall Street.
The trigger, says Stockman, will be a debt ceiling crisis on or around March 15, 2017, which incidentally, just happens to be the same day that the Federal Reserve is supposed to hike interest rates:
In a typical month we have 250 to 300 billion in revenue coming in… that will easily cover the debt service for a month… that will readily cover social security and other critical payments… but when it comes to paying grants to state and local governments, contractors, or the Army Corp of Engineers, or the Pentagon, or a whole range of other activities, if you don’t have the cash you put the bills in the drawer…
I think that is what’s going to shock the system… and it will scare the living bejeezus out of Wall Street and financial markets because then you won’t have a sudden clarification or resolution to the problem.. and that could go on for days and weeks.
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