Sunday, August 6, 2017

STOCKMAN: Trump Could Be Gone By February

David Stockman, who headed the Office of Management and Budget under Ronald Reagan, in a new commentary warns:
Ultimately, the hammer of fiscal crisis and a crashing stock market will break any remaining loyalty of the GOP elders as they smell the 2018 elections turning into a replay of the rout of 1974.

And then the Donald will be gone, and well before August 2018, too. I told an audience in Vancouver last Friday that it could happen by February.

The bottom line is that the Swamp is so undrainable that it will end up making mincemeat of Donald Trump....

In essence, the Donald is the ultimate bull in an exceedingly fragile China shop — and an already badly wounded one at that.

So it is no understatement to suggest that the S&P 500 at 2470 and the Dow at 22,000 is about as fragile as the “market” has ever been.

And Amazon, poster boy for Bubble Finance, is trading around 190 times earnings.

Any untoward pinprick could send it into a tailspin — meaning that the coming political bleeding-out of the Donald amounts to a 50,000 pound pin.

It’s the mighty Orange Swan that will lay the casino low like never before.
At the moment, I am not as concerned about the economy as Stockman. I see short-term trouble ahead for the stock market but I don't necessarily see the stock market causing another major recession in the near term.

That said, how will the unpredictable Donald Trump deal with a market crash? Will he spook the entire system?

And what about all the generals that surround him?

And if Trump makes it through February, will he make through the Ides of March?

Not even Julius Ceasar could make it through that mark on the calendar with angry senators around him.

 -RW

13 comments:

  1. thats assuming Trump isn't part of this set up.

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  2. This is nothing less than an attempted coup against a duly elected President. What we are witnessing are the death throes of the United States as a Constitutional Republic. I don't know what comes after but it won't be good.

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    1. We must be prepared to defend this country with all means available, including violence.

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  3. Personal fantasy masquerading as unbiased opinion

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  4. And we trust David Stockman because . . .

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    Replies
    1. Because of his innate ability for picking market tops.

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  5. Could?
    Maybe "should".
    Attacking his own Att'y General from behind news headlines and the recently-leaked phone call transcripts begging the President of Mexico to help him lie were the last two straws w/ me.

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    1. That attorney general is a treasonous, compromised POS turncoat. The content of the Mexico call, fake news.

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  6. ...and millions of Trump supporters are just going to sit quietly and watch as their votes are nullified by the Washington DC elites?

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  7. There was far less provocation for first Civil War. I am ready to jump into battle and will not hesitate to 'dispatch' as many Democrat leaders and RINOs as humanly possible should the call come to defend this nation against the treasonous, evil enemies that are threatening her. LOCK AND LOAD!

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  8. A lot can change, but I don't really see this happening on Stockman's timetable. I'm sure TPTB well understand how critical "democracy" is in terms of conferring perceived legitimacy upon their schemes. I seriously doubt they'd kill the golden goose simply because it's producing some inconveniently-shaped eggs in the short run. It would be uncharacteristically short-sighted of them.

    They'd be better served continuing to try to co-opt him, and hoping he rolls over like he did on the Russia sanctions. His anti-establishment bonafides would make him a powerful ally, and I look for them to exhaust all options towards those ends before they attempt a coup.

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  9. Stockman's trying to sell subscriptions to his econ SHTF website and publications.

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  10. Apparently there are still trillions of dollars in cash still sitting on the sidelines with nowhere else to go. Of course there will eventually be a catastrophic crash, but before then is it possible we will see a Dow of 30k or even 40k?

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