David Stockman, former head of the Office of Management and Budget under Ronald Reagan and a Wall Street veteran, recently told King World News in an interview that “all hell is going to break loose.”
Stockman divided the problems America faces into two kinds: foreign policy and economic.
Stockman said “our foreign policy is collapsing everywhere, and yet the war party in Washington keeps wanting to do more of the same.”
On Russia, he stated that the “confrontation with Putin is utterly out of hand and unnecessary” and that the trade war will “ricochet throughout an already fragile European economy.” On Iraq, he takes a non-interventionist stance, questioning “What is he thinking?” as Obama considers a new Iraq war.
Economic issues are Stockman’s area of expertise and where he spends most of his time. He doesn’t believe “this central bank ‘act’ can be kept up.” He sees a stock market that has risen for the last 64 months and wonders when a bear market will rear its ugly head. Not only that, but the whole US economic system is “booby trapped with both visible and hidden leverage.”
“Train wreck is a pretty good term to describe what is coming,” says Stockman. He thinks that with the rapid expansion of the Fed’s balance sheet from $900 billion to $4.5 trillion in less than 70 months, a train wreck is inevitable. He closes with the prediction that eventually, “all hell is going to break loose.”
What do you think? Do current foreign policy and economic facts back up Stockman’s contention that “all hell is going to break loose?”
Photo credit: New America Foundation (Flickr)
This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom