Wenzel With David Stockman

After my visit to the Council on Foreign Relations, I met up with David Stockman in the evening at his place in New York City, which towers directly over the Mayor's mansion, now occupied by the commie Bill deb Blasio.

It looks like an anthill from David's perch.

David is the former director of the Office of Management and Budget under President Ronald Reagan. A former Blackstone partner, he currently writes David Stockman's Contra Corner.

David, if it is possible, is more concerned about the debt situation than I am.

This is what a David Stockman-Robert Wenzel selfie looks like.

At our evening discussion, he pointed out that the Fed is now doing the exact opposite of what it had been doing since the Great Recession. Whereas they were previously adding to their balance sheet, they are now starting to shrink it. So they are putting securities into the market at the same time the Treasury has to offer huge amounts of new debt. This is not a formula for a sound bond market.

And here's the kicker, David thinks smart money will start front-running the Fed security liquidations which will at some point lead to massive liquidations in the bond market.

He also has done some great research on the poison that was used on the two Russians in London.  After you read what he has discovered, you will think that he is probably the only journalist covering the story who is doing serious research. I'll run the poison story at Target Liberty when he publishes it.

-Robert Wenzel