Former Reagan Economic Advisor Warns: Debt Ceiling “Hard Stop” for Economy
David Stockman, an economics adviser to President Ronald Reagan, told Greg Hunter of USAWatchdog’s that March 15th of 2017, two days after President Trump presents his budget to Congress, will be a “hard stop” for the economy. Stockman believes “I think what most people are missing is this date: March 15, 2017. That’s the day that this debt ceiling holiday that President Obama and Speaker of the house, John Boehner put together in October 2015, expires. The debt ceiling will freeze in at $20 trillion. It will then be the law. It will be a hard stop. The Treasury will have roughly $200 billion in cash. We are burning cash at a $75 billion a month rate. By summer, they will be out of cash. Then we will be in the mother of all debt ceiling crises.”
Stockman blames an unbalanced federal budget, large tax cuts, and corporate bailouts for the increasing federal debt and attributes its progression to the rules and regulations implemented by the Obama administration. Stockman believes that the only way to control the debt is to reverse the intense regulations which he says will be incredibly difficult for the Trump administration to accomplish. If swift action is not taken, the debt will reach an all-time high of $20 trillion.