As time goes on, it’s becoming abundantly clear that Trump isn’t going to be able to prevent a major financial crisis in this country. Depending on your beliefs, that’s either because he’s inept in some way, or because he’s being hamstrung by a political system that’s determined to keep our nation on the same unsustainable path. Whatever the case may be, it seems that there is no way that we can change course at this point. We’re headed for a financial crisis, and it’s going to happen sooner rather than later.
The comments above & below are edited ([ ]) and abridged (…) excerpts from the original article written by Daniel Lang (ShtfPlan.com)
That’s also the opinion of David Stockman, a former Congressman and director of the Office of Management and Budget under Ronald Reagan. In this interview with USA Watchdog, he reveals why the market rally that broke out after the last election, “was the greatest sucker’s rally we have ever seen.” He also explains why the economy could go off the rails this year, after our government endures a major budgetary crisis.
Earlier this month our government avoided a shutdown, because Trump decided to sign Congress’s $1.2 trillion spending bill. In effect, he postponed a serious fight with Congress for later this year. [Check out https://goo.gl/T2fnWj – Register for chance to win an iPad Pro!]
On May 2nd he tweeted “Our country needs a good ‘shutdown’ in September to fix mess!” so, clearly, next time he’s going to be a lot less compromising in his efforts to change the budget. That’s going to spawn a fight over the budget between Trump and both political parities, and according to Stockman, that’s when the next wave of our financial collapse is going to arrive. [The following excerpts are taken from this video.]
“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.”
That “fiscal bloodbath” is going to be the first domino to fall before the stock market and the bond market crash, both of which are extremely overvalued.
“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 2% or 3% up, but you are facing another 30% or 40% down…
…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 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.”
When the above happens, Stockman believes that the only thing that will remain standing is gold and other physical assets. Make sure that you’re prepared for it because a financial collapse is going to happen and everything that only exists on paper is going to take a hit.
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