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Stockman: The US is headed for a crisis

Talking Numbers

Former Reagan Administration Budget Director David Stockman says America is headed for a fiscal disaster.

He was Ronald Reagan’s first Director of the Office of Management at the age of 35, and the man many credit with creating the modern tax code. But David Stockman now has harsh words for Washington: America is heading for fiscal Armageddon.

Stockman has never been one to shy away from controversy, criticizing his own party as much as those across the aisle. A generation later, the author of the book “The Great Deformation: The Corruption of Capitalism in America” warns that America is in for trouble, despite some optimistic data from various sources. For example, a recent survey from the Institute for Supply Management suggests that factory orders are up.

(Read: U.S. manufacturing, construction data suggest growth pickup)

“We have an enormous fiscal crisis coming down the road,” says Stockman to Talking Numbers. “This thing isn’t in remission.”

Stockman believes the crisis in Syria is a distraction which will keep fiscal issues off the table until it reaches crisis point once more, calling it “the detonator that will soon cause Washington to be engulfed in a firestorm of conflict and acrimony.”

(Read: What’s at stake for Russia in Syria)

That’s not all. In the interview, Stockman responds sternly to former fellow Reagan staffer, economist Paul Krugman, who said charged Stockman with being “cranky” when it comes to his views of economics.

But, to hear Stockman’s most devastating assessment of why he thinks the country is in for trouble, watch the video above.

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