It’s All Coming Undone

By David Stockman  |  October 2, 2019

Well, this October is off to a start befitting the month’s reputation.

Yesterday was the worst October 1 on Wall Street ever. The Dow Jones Industrial Average was off 343.79 points. The S&P 500 Index shed 1.2%. The Russell 2000 Index broke below its 200-day moving average.

Stocks are still tumbling a couple hours into the new trading day – the Dow off more than 400 points, the S&P giving back another 1.5%. And the CBOE Volatility Index – known as the VIX and also as the market’s “fear gauge” – spiked more than 10% this morning.

Trump’s Impeachment is a Fantasy

And the Deep State’s noose is drawing ever tighter around the Donald’s neck.

As Thomas Jefferson wrote, “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.”

And, sure, the men who wrote the Constitution included things like “impeachment” as relatively peaceful ends to things like that – we do indeed have a self-(refreshing) representative republic, if we choose to have one.

Only, it’s being used here, again, to further purely partisan interests, not those of the American public. And it’s not going to work out the way Imperial Washington wants – not this time.

So, they may run him out of the Oval Office.

They may even “restore the restoration” and see Hillary Clinton take the oath on January 20, 2021.

Sure, it’s the wildest fantasy. But online betting markets have her ahead of folks who are running hard for the Democratic nomination, including Pete Buttigieg, Kamala Harris, Cory Booker, and – in the immediate aftermath of procedure to fix an artery blockage – Bernie Sanders…

Folks, it’s chaos.

A Fragmentation on Democratic Party

Now, look, I have no brief for Hillary Clinton. Nor would I buy a “yes” contract with her name on it on PredictIt.

This is more a sign of a coming fragmentation on the left of our political spectrum. The demise of the GOP is widely discussed, and thoroughly assumed in some serious quarters.

And, for its slow-running abdication of its traditional role in our system as the responsible fiscal party and the advocate of small government, it could use a complete overhaul.

What nobody’s really discussing, especially in the heat of this impeachment moment, is that Wall Street Democrats do not want and will not stand the current de facto front-runner for the Democratic nomination.

I’m not talking about Joe Biden. The Acela Corridor – including the money guys in Manhattan – love Joe Biden. He who stakes so much of his “regular guy” rep on the fact that he roundtripped on Amtrak every day from Delaware to D.C. is almost literally their man.

But he and his son are eyeballs-deep in Ukraine muck. And it’s more than enough to sink a candidate whose flaws have been obvious since 1988.

No, I’m talking about Elizabeth Warren.

This Impeachment is a Sideshow

As I discussed with the great folks on Cheddar yesterday, “impeachment” today is a sideshow.

The greatest threat to liberty, folks, is the Leviathan. And it’s getting bigger. Did you know the U.S. budget deficit topped $1 trillion in the first 11 months of the fiscal year?

Well, folks, Imperial Washington may be done with the Donald. But he’s unleashed forces that will drive “a decade of political combat probably as bad as we’ve seen since the 1850s,” as I told Cheddar.

Obviously, that has monumental implications for the domestic situation. But there are geopolitical matters to consider as well.

Indeed, at no time since 1945 has the question of American Empire been as fraught as it is now.

After “Peak Trump”: Charting Uncharted Waters

It’s my pleasure to be delivering the Keynote Address at the 2019 Irrational Economic Summit October 10-12 right outside Imperial Washington.

But you don’t have to dare the Swamp, folks, because you can watch the videos… read the transcripts… view the presentation decks… all at your fingertips… wherever you are.

Click here to learn how to learn more about the Full-Access Livestream Pass.

The stakes are already high heading into 2020. The U.S. presidential campaign is already underway. And the Tweeter-in-Chief is tied up in the day-to-day movements of the major stock indexes like no president before him.

And the increasingly desperate incumbent will do anything he must to hold the White House.

That’s why I’ve titled my Keynote Address, “After ‘Peak Trump’: Charting Uncharted Waters”.

Leviathan gets bigger, Wall Street gets richer, and Main Street… well, Main Street gets more and more little every day.

We’re rapidly approaching the end of the oldest, weakest economic “recovery” in American history. At this major tipping point, there’s no telling what the Donald’s great disruptions could do to your wealth.

Click here to learn more about the Full-Access Livestream Pass to the 2019 Irrational Economic Summit.

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David Stockman

David Stockman is the ultimate Washington insider turned iconoclast. He began his career in Washington as a young man and quickly rose through the ranks of the Republican Party to become the Director of the Office of Management and Budget under President Ronald Reagan. After leaving the White House, Stockman had a 20-year career on Wall Street.MORE FROM AUTHOR