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News Link • Government Debt & Financing

David Stockman on the Brewing US Debt Ceiling Crisis…

• International Man - David Stockman

The MAGA folks are going to be in for a rude awakening. That's because Donald Trump has been taking to the public stage in recent weeks promising a new "golden age" of American prosperity upon his return to the Oval Office, but nearly the opposite is just around the corner. What's actually coming down the pike is the UniParty's revenge— a financial and economic shitshow that is likely to dwarf all that has gone before.

There is no mystery as to why. To wit, there is a demolition derby brewing in the bond pits that threatens to extinguish any even faint remaining hope that Washington's Fiscal Doomsday Machine might be unplugged.

We are referring to the utter fiscal paralysis that stems from the combination of the GOP's addiction to tax cuts and Big Defense budgets and the Dem's demagoguery about Social Security, Medicare and the rest of the Welfare State. This means that down on the banks of the Potomac there is virtually no one left in the camp of fiscal rectitude. And, equally importantly, there is no political hay to be harvested by campaigning against the "borrow and spend" proclivities of an overweening central government, which has now become heavily insulated from the daily life of the people as they struggle to pay their bills and ward off the economic imprecations of inflation and taxes.