our friend david stockman. the market wanted the president to talk about tax reform.nd the market rallied. >> the market is delusional by the hour. what's happening is ahead of schedule the white house is a political train wreck. capitol hillas erupted into rtisan warfa. administration is distracted with his ridiculous immigration ban. gary: the president said he will deliver a tax cut across the board, corporate, personal, and he's going to do it i am mentally. >> -- imminently. >> that's a fond hope. but it will take months to put together a detailed 10-year budget plan to do all the forecast and analysis. without that -- trish: how do you think that breakdown will happen? is that paul ryan and company, the status quo republicans who say when can't afford this? >> of course we do. but he's inheriting a $10 trillion built-in deficit the next 10 years. he wants to raise the defense by over a trillion dollars. his generals are running around doing that. the debt ceiling which has been suspended will go back into effect march 15 at $20 trillion. and to do any of this he

his object continue ansi, said david stockman, was destined to keep america's economy hostage to the errors of his advisors for a long, long time. so mark twain used to say that history doesn't repeat itself but it does tend to rhyme. so yeah, this isn't exactly like ronald reagan in 1981 and 1982, but it rhymes with 1981 and 1982. it rhymes with it. they're trying to argue economics like lawyers, okay? politicians. p.r. people. sell the bill of goods. donald trump calls it credible hyperbole, when he was selling a piece of property. well, the united states is not a piece of property. the american economy is not a piece of property. it is the central organizing principal for all the hopes and all the dreams of every person who lives in our country. and you cannot allow for knowingly false premises to be advanced. and that's what congressman mulvaney represents in this entire process if he is confirmed as the new head of the office of management and budget. he represents someone who is going to reach back into time to this era which has already been shown to completely fail and to rep

turned out not to be true. >> these are not especially happy days for budget director david stockman.issue of the atlantic monthly has a long article about stockman in which he's quoted as saying some things he no doubt wished he had not said. >> i got the magazine. it was an early copy. the president gave a news conference that day. i kept waving my hand. he didn't call on me. so i chased him out. >> your budget director more or less says with the economic program is wrong. it creates inflationary -- >> he had no idea what i was talking about, clearly. so i broke the story that night that the budget director blew the whistle on this plan. >> what he still contends were off the record conversations, stockman expressed disillusion. with the reagan supply side economic theory. stockman refers to naive supply siders. the whole thing, meaning the reagan plan, is premised on faith, said stockman. none of us understands what's going on with all these numbers. >> it was very, very damaging. a lot of people wanted him fired, but i thought we had to keep him because he knew more about the budg

who was economics deputy to david stockman at omb. you need to put that in. >> the two winderkins who went who the white house with ronald reagan. >> in his first book he said jerry jordan and larry kudlow -- look at that picture. haven't changed a bit. david said jerry jordan and i were the only honest economists in the government. [ laughter ] >> you guys are the authorities here to answer this question, larry. trumponomics, how closely does it resemble reaganomics? >> there are similarities, particularly on tax reform and rolling back regulations. reagan wanted to lower marginal tax rates. in those days bigger problem was individual rates at 70%. these days i think it's business rates, frankly. trump has both. they both believed in the incentive model of growth by lowering tax rates. one more quick one. they both wanted to roll back regulations. reagan deregulated the price of oil first day in office. trump has a whole laundry list. we didn't get what we wanted with david stackman. those two. taxes and regulations. very similar. >>

we'll interview barclays ceo be bob diamond and former omb director for reagan david stockman. they have a lot of thoughts on potential tax cuts from donald trump. do not miss it. liz has you covered. see you at 6:00 p.m. on "special report" tonight. liz. liz: great breaking news out of ford in a second. trump taxes and trade talk driving wall street to new record highs again. remarks with today's news conference with japanese prime minister shinzo abe driving markets to the peak of the session and even higher. we're pulling back in last couple minutes. we're up 94 points for the dow. president trump all smiles as he and abe extended a budding broman between the two men and nations. committed to bringing u.s.-and japan's relations closer. what about closing the massive trade camp between two countries. japan gets better end of this deal by how much? you might be stunned. they are headed aboard air force one to joint base andrews to mar-a-lago. what can the u.s. really get from japan if we buy more from them than they do from us? former ambassador to japan john ruth what the art

i can see you shrugging your shoulders and david stockman and other people are worried about it.ckman was on with neil and let me play you the sound bite to get you to react. >> i don't think we'll see the tax cut this year at all? >> really. >> not a chance, there is going to be a debt ceiling crisis like never before this summer, and that's what people don't realize. they burned up all the cash that obama left on the balance sheet for whatever reason. david: could a debt ceiling crisis be another barrier for real tax reform? >> david, i've been in washington nearly 30 years i heard about these debt crises for all that time. they always get it done. sometimes they wait until the very last moment, the 11th hour, they push it over the finish line and get it done i don't think it will stand in the way because tax reform is too important. replacing obamacare is far too important and they have got to deliver on those promises. they will sweep this aside and move on to really important things. david: i will ask you to predict how much time between the end of obamacare reform and tax c

we'll interview barclays ceo be bob diamond and former omb director for reagan david stockman.t of thoughts on potential tax cuts from donald trump. do not miss it. liz has you covered. see you at 6:00 p.m. on "special report" tonight. liz. liz: great breaking news out of ford in a second. trump taxes and trade talk driving wall street to new record highs again. remarks with today's news conference with japanese prime minister shinzo abe driving markets to the peak of the session and even higher. we're pulling back in last couple minutes. we're up 94 points for the dow. president trump all smiles as he and abe extended a budding broman between the two men and nations. committed to bringing

. >> thank you, david stockman, former director of the official 6 managements and budget under presidenteagan, why the stock market may be headed for a free fall. that's today at 1:00 p.m. eastern on "futures now." we'll be right back. [phiry .atrs y tto figuad c d [phiry at war y tto figuad c d we, ult dectly thinkowipp cit lyou chnd share li, sot out myon mat? th on neecot -a chahiort o eigh o!♪♪ hgh h h 's oo rk h 's oo rke goeigh h hhes upn of y elys,go-g s at d... 8thou

tom: if you are sitting here with david stockman, who has monetarycal critic of policy in the world oft dampened regulation, or is the horse before the cart, the confidence that business gets because they feel there is going to be dampened regulation? peter: there is a feeling that the regulatory environment is shifting dramatically here, from a trend toward greater regulation to just the opposite. you combine that with the notion that business taxes, corporate taxes are going to be declining significantly, that gives you a bigger reason to feel better about the business climate. so i think we are seeing business sentiment indicators, from small business to large business, moving off the chart, with unprecedented increases within an independent business survey, small business survey, how businesses view the current environment. this has to do with the changes that have occurred since the election, the kind of talk about deregulation, about tax decline. yes, there is a major sentiment impact here. francine: peter, it seems strange that we forget we went through a huge financial crisis,

. >> and he also didn't propose deep spending cuts as david stockman likes to remind us.mp is propose spending cuts but he can't get enough to offset it out of the discretionary budget and he has said the entitlements are off the table. entitlements are also a big impediment because spending on those is going to go up. this is not just republicans versus democrats, it is republicans versus republicans. the tea party crowd, will they go along with something like that? jon: talk about how he is going to fund this deficit because the federal reserve has a big conversation about the balance sheet and how that strategy is going to evolve. if it is going to fund the deficit? >> ultimately the markets are funded at higher rates. alix: domestic or foreign? >> both materialized relative to maybe the fiscal stimulus. but it is all guesswork. we don't know how much there is going to be in tax cuts, tax reform or spending cuts or spending increases. again, the federal deficit rises in 2018. and the federal debt rises, and then we will get a higher market yield, possibly reinforced by

. >> and he did not propose deep spending cuts as david stockman likes to remind us.n't really get enough to offset it out of the discretionary budget. he said the entitlements are off the table. entitlements are now also a big impediment because those will go up a lot. this is not just republicans versus democrats, it is republicans versus republicans. the deficit crowd, the tea party crowd, will they go along with something like this? >> japan, china, the federal reserve, a big conversation about the balance sheets. who is going to find the deficit? >> ultimately the markets will fund it at higher rates. materialize until fiscal stimulation. it is all guesswork. there will be cast cuts, tax reform or spending increases? see the federal deficit rising in 2018. the federal debt rising and we will get a higher market yield, possibly reinforced by a more aggressive stand. aroundently we have been 240. you say significantly higher funding costs, but what is higher? higher?basis points >> by 2019? probably 200 basis points extra on the longer-term. that is still modest, b

david stockman, ronald reagan's former budget director says that would be a mistake. he is a little bit worried about that. he joins us out of new york. david, no entitlements, that is 2/3 of the budget for the time-being off the table with this had president and presumably congress. what do you think of that? >> i think trump is so far, you know, so deep in fiscal la-la land that if he won't even find the envelope with the wrong answer. he is saying crazy things. saturday he tweeted he would reduce the national debt by 12 trillion or 12 billion. he actually increased the net debt in 35 days by $187 billion. he inherited that, five billion a day of red ink going out the door. neil: he is referring to the 12 billion in the first roughly month in office versus the 200 billion increase we saw in barack obama's first 30 days in office but regardless, the math is specious at best on this, right? there are a variety of reasons for that, right, explain. >> the reason when he took office there was 382 billion of cash in the treasury. it is down to 178 billion friday afternoon.