Will the United States be able to go forward unharmed with the debt accumulated and new money printed during the past 16 years, especially under Barack Obama? Ronald Reagan’s former budget director, David Stockman, claims that it won’t. In fact, he predicts that another recession awaits.
After recalling the economic prosperity in 2007 before the great crash, David Stockman remarks that we are “at the moment again. Only this time the danger of a thundering crash is even greater.”
According to Stockman, America’s central bank printed a dangerous amount of money under the Obama Administration, totaling over $15 trillion. This money-printing, he warns, created an economic boom that must eventually bust. In the housing and stock market, remarks Stockman, much of the growth seen in recent years is not a result of smart policies by Obama, as many of the former President’s defenders might claim, but rather as a result of money-printing and borrowing. And the growth cannot last forever.
“We are in the blow-off stage of the Fed’s third and greatest bubble of this century,” he wrote in a recent article.
David Stockman, who predicted the Great Recession, has been warning Americans for over a year about the coming fiscal crisis. The most troubling policy – the one that he suggests is the most responsible for a coming recession – is the vast money-printing that occurred under the Obama Administration.
“90 straight months of zero [percent] interest rates. There’s nothing like it previously conceived,” remarked Stockman. “We have had 3.5 trillion dollars of money-printing. We cannot create prosperity with zero percent interest rates.”
Put differently, we cannot create prosperity by printing money.
“We’re going to head into recession later this year or next year,” remarked Stockman late in 2016 to Fox Business. “The world economy is slowing down rapidly. We can see it in the trade numbers. We can see it in the constant dislocation that is going on in China.”
Let’s all pray that President Trump, a businessman, will respond appropriately to a recession if David Stockman’s predictions come true. What do you think about Stockman's warnings? Meanwhile, interesting news is coming out about the Trump White House.