david stockman, former budget director, david, good to see you >> grad to be here. neil: the president should be crowing about the tax cuts, should he? >> absolutely not. he is in the midst of one of the most irresponsible spruce of spending, tax cutting and borrowing in recorded history. next year there is going to be a 1.2 trillion deficit, the 10th year of a recovery that at a point that will exceed any business cycle expansion we have ever had in history. it is bad enough when you have a huge trillion dollar deficit at the bottom of the recession, but after 10 years of recovery, that is all she wrote. we're heading for the next recession one of these days, an they're piling on the debt with red ink like no tomorrow. this tax cut should have been paid for with spending cuts, if you wanted to have it and they didn't do it. now at same time we have the fed finally shutting down the printing press and they're going to be shrinking their balance sheet. so let me make the number very explicit. the treasury will be borrowing 1.2 trillion in the coming year. the fed wil

david: david stockman, great to see you as always, david. i appreciate it. melissa: breaking news, vice president mike pence is visiting a local business in white silver springs, west virginia. the vice president is touring worldwide equipment touting economic progress and tax reform the vice president still made the trip following a deadly train crash carrying republican congressman to the same area of west virginia later today. david: the president said he will be releasing fisa memo allegedly detailing improper surveilance of his campaign. the fbi has great concerns about its accuracy. judge andrew napolitano is here to join us. melissa: socking news from capitol hill, a key congressional republican leader announcing he will not seek reeke hundred v latest in a series of high-profile committee chairman to leave office. more coming up. david: republican lawmakers and families on buses heading to a retreat in west virginia, after a train rammed into a dump truck in a high speed collision. some members have been taken to the hospital. a live update from the

is out there right now trying to keep the ponzi scheme as david stockman calls it the red ponzi scheme afloat right let's say something all these things are going to collapse probably in two thousand and eighteen because we have an inverted yield curve probably by october of two thousand and eighteen billion briefly but they're still in the short end of the yield curve interest rates are higher than the long and deal to right now we have fifty three basis points between the two year and the ten year note that's going to invert now we have the cause credit to seize up. a bank and have paid the positive more than a loan why am i going make any more loans i don't want our deposit alive or went up a lot you know in the credit crisis of two thousand so we're adding to our credit crisis how are they good absolutely no i didn't know it was no ammo other things i mentioned before helicopter money universe of ways you can come and negative interest rate policies made possible by. these universal because of a fed coin or an i.m.f. coin in them are they going to ok now there's three billion peopl

the society are just being used to goose up the stock market but that way that way lies a crash david stockman who used to be reagan's economic policy advisor is pretty clear on this and follow his stuff pretty closely the danger is that the u.s. is basically going for broke here because they presume they print will reserve currency but as we know the petro units being developed in china the russians have got a different kind of policy on what the world financial architecture should look like you know this could all come very unstuck for the ruling class in the united states has been talked the democrats were ready to fund the wall in return for idea one illegal immigrant is not something you see likely. i think probably they will come to some kind of deal i imagine you know the stock brokers and hide from traders and so on presume that somebody will blink on a deal will be done in the end. i think the partisanship that's going on is very palpable. what is dismaying really is bringing the rush into this is a call of evil demon behind the scenes and that's really bad for world peace and stabili

is out there right now trying to keep the ponzi scheme as david stockman calls it the red ponzi scheme afloat right let's say something all these things are going to collapse probably in two thousand and eighteen because we have an inverted yield curve probably by october of two thousand and eighteen billion briefly but they're still in the short end of the yield curve interest rates are higher than the long and the old her right now we have fifty three basis points between the two year and the ten year note that's going to invert now we have the cause credit to seize up. a bank and have paid the positive more than a loan why am i going make any more loans i don't want your deposit alive or went up a lot you know in the credit crisis of two thousand so reading through a credit crisis and how they got absolutely no i didn't know it was no ammo other things i mentioned before helicopter money universe of ways you can come and negative interest rate policies made possible by these universal because of the fed coiner and i.m.f. going to them or they're going to now there's three billion pe

david stockman, reagan's director of office management and budget, recently wrote a book called "the great defamation," about how the market was rigged and anything but free. he argued "crony capitalism is about the progressive and active use of political resources to gain something from the governmental process that wouldn't otherwise be achievable by the market." the freea betrayal of market system. "money dominates politics. as a result, we have neither capitalism nor democracy in america." this is ronald reagan, guys. this is not one of bernie sanders staffers. oligarchy, mark mckinnon, george w. bush is medications director, -- george w.beral, bush's medications director, no itical liberal, wrote that creates an oligarchy inside of america. the system is controlled by a handful of ultra-wealthy people, most of which you got rich by the system and will get richer by the system as a result by their participation in it. finally, gridlock, as you know, it is hard to get much done today in washington when retiring democratic senator tom harkin was giving his exit interview to "the wa

. >> david stockman, when he did his book, it was personal. george stephanopoulos. >> that was personal. >> that was personal, too. >> others didn't take it personally. >> oh, no, no, no. they did. they just didn't tell us how personal they took it publicly. bill clinton is still angry about it. >> and cease and desist letters either. >> how many authors, please, can you senda a cease and desist letter to my book. >>> the author took to twitter and facebook yesterday and said, "thanks mr. president." >> he went from 449,000 to 1. >> continue to the marketer in this case, reverse marketing. jump in. i'm sorry. >> no. every president of course takes these things personally. nobel a not only are there -- nobody likes to see themselves in the pages of anything. right? you never recognize yourself. so every president does take it personally. every president does not have twitter. every president does not manage his staff the way trump manages his, which is basically the way he managed his company. >> i was going to say. i've talked to a few people

he drew david stockman in. urned on that tape recorder and stockman just started talking and couldn't stop. by the time that "atlantic" piece was done, it was devastating to the reagan administration. >> true. >> talk about that and how some people given sudden game in washington and the white house actually get outside of themselves. >> yeah. sometimes in life somebody cuts a tape recorder on before you and says but what did you really think and you think wow, somebody cares what i think. and you start going to town. so that's part of it. let me tell you something that's different about stockman and grider and that story. it was all serious, and it was about policy. it was about whether reagan economic policy was promising and sturdy or was, nfin fact. it didn't attack reagan's character or the character of the men around him. the indictment right now of bannon to trump is personal, rather incendiary. money launders, deutsche bank, revealing in some way that is petty is the wrong word, but they're going at the

. >> bingo >> i go back to david stockman and george stephanopoulos.t is not a new story. >> we were talking about ron christie about half an hour ago. i made the observation that we and the media spent a lot more time paying attention to what the president said specifically on twitter than what the results have been of his first year. if the president puts twitter down for good, how much popular do you think he will be? >> i believe the election in november would be about the economy and not about what he puts on twitter. >> i agree with you on that, by the way. >> i think people got 4% gdp, they're not going vote to bring the democrats back twitter may have been the greatest distractions ever from moving important the most legislation regulatory of the last 25 years. we have to wait and see. it is a great question, i don't know the answer to it. >> just so i know, one quick questio question if donald trump stops tweeting from his account, the dow would rise 500 points on that day, would you agree with that? >> i don't think it could go any higher if

i don't know if you remember the early years of the reagan administration when david stockman had a tapein front of him and basically just undercut every economic argument ronald reagan made and people said why did he do? why did he do it? why did steve bannon do this, and do you suspect his impulses were the same? he wanted to let the world know -- >> i think the lunacy -- >> yes, i think two things. maybe three things. steve bannon whether you agree with him or not went into this white house with a very particular agenda. and i think that he found that it was extremely hard to implement the agenda, and that it probably wasn't going to be implemented. the opposite as trump veered more toward mitch mcconnell, that was absolutely away from steve bannon. then i think steve bannon was in this, and was kind of horrified by the fact that this white house was being run by donald trump's family. people who were not experienced, who -- and who were functionally democrats, and then -- >> speaking of family, i have to say as a side note, i found it fascinating it was ann coulter, the voice of reas