David Stockman doesn’t have a whole lot of faith in either the United States and global economy.
The former White House budget director and bestselling author of “The Great Deformation” told CNBC that he thinks a recession will “engful the entire world economy, including the United States.”
Stockman, who pens an aggressive number of op-eds on Newsmax and his Contra Corner blog, cited a number of statistics to show that a recession is coming, nothing that “trade is drying up” and “shipping rates are at all-time lows.”
“Look at the data coming in year-to-date, and this is why I think the stock market is going down too. Every bellwether economy — exports in Japan down 13 percent last night in January, China down 10 1/2 percent, India down 13 1/2 percent, Korea down 8 1/2 percent. Everywhere trade is drying up. Shipping rate are at all-time lows. Singapore is essentially crashing,” he said.
Stockman explained that any recent rebounds in the stock market is essentially a “dead-cat bounce and they’ve already buried the cat.”
With oil prices heading into the teens, the global economy “is falling apart.” When it comes to the 20-year-old credit bubble, it’s finished. Meanwhile, the central banks worldwide “are lost” and “out of dry powder.”
Can a brand new U.S. president improve the situation? Nope.
“The out-of-control election process will feed into and create an environment that we haven’t seen since the fall of 2008,” Stockman stated.
In one word: doom.
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