Stockman: Warns on U.S. “Bond Armageddon”; First Default Could Be to IMF
By Robert Wenzel
David Stockman, former Budget Director under Ronald Reagan, told CNBC’s Nicole Lapinthat the first default by the United States government could be a payment to the International Monetary Fund. Lapin reports:
He said that this careless “shoveling” of money could lead to a default here in the U.S.— and suggested that the first default will be on our payments to the IMF.
Overall, Stockman doesn’t think much of the IMF or what the rescue attempts of the PIIGs are doing in Europe. Lapin again:
We’re doomed on both sides of the pond, he told me on the set of “Worldwide Exchange,” and he didn’t hold back in name-calling the “lunatics” responsible for our global fiscal mess—especially the EU and the IMF.