Hollywood wasn’t the only one entrenched in “La La Land.” United States President Donald Trump is also immersed in “La La Land,” a fiscal one that is, says David Stockman.
Fresh off warning about a “fiscal bloodbath” pertaining to the upcoming debt ceiling debate later this month, the former Reagan budget director is warning that United States President Donald Trump will produce a debt crisis that has never been seen before.
Speaking in an interview with the Fox Business Network on Tuesday, Stockman, the bestselling author of “The Great Deformation,” explained that he has already given up on the new administration because Trump has yet to learn anything and continues to make outlandish statements. The worst thing of all, says Stockman, is that Trump “is not paying attention.”
He cited the proposed $54 billion increase in military spending as an example of this. Stockman averred that the nation’s defense budget is already 10 times larger than Russia, adding that the U.S. doesn’t need to spend $6 trillion on defense spending over the next decade.
Another area that Stockman is concerned about is healthcare, calling Republicans divided on specific issues.
“If you look at the Ryan draft that came out over the weekend, it’s basically Obamacare-lite. It’s not really repealing anything,” the former Republican Congressman said. “It’s basically reneging and turning the Medicaid expansion into a block grant, turning the exchanges into tax credits [and] it’s still going to cost trillions of dollars…”
The contrarian doesn’t believe there will be tax cuts this year.
Ultimately, a debt ceiling crisis is going to happen, and it’s going to be brutal because Congress “burned up all the cash.”
“There is going to be a debt ceiling crisis like never before this summer and that’s what people don’t realize. They’ve burned up all the cash that Obama left on the balance sheet for whatever reason,” Stockman said.
The U.S. is in for some interesting times over the next year. You’re going to need Mozart’s “Requiem” as a soundtrack for this financial mess.