David Stockman: Our Runaway Debt & Deficit Are Finally Starting to Matter
"This Won't End Well"
Over the course of his long and successful career, David Stockman has been both a Washington DC *and* Wall Street insider.
He was the youngest serving cabinet member of the 20th century (heading the Office of Management & Budget under Reagan), served as a US State Representative, and was an early member of Blackstone.
So he knows better than most people alive how our political, economic and financial systems work.
Which is why we should listen closely when he talks of our current runaway deficit spending and mountain of public & private debt and concludes "this won't end well".
To hear his informed reasons why, click here or on the video below:
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Adam’s Notes: David Stockman (recorded 7.16.25)
EXECUTIVE SUMMARY:
Massive Debt Growth: The U.S. public debt has surged from $930 billion in 1981 to $37 trillion in 2025, projected to reach $130 trillion by 2055 under current policies, and per David’s calculations, $185 trillion with the new “Big Beautiful Bill,” driven by entitlements and spending.
End of Central Bank Absorption: The Federal Reserve’s balance sheet expansion (from $200 billion to $9 trillion) enabled debt growth since the 1980s, but post-2022 inflation (9% peak) has ushered in a “great reluctance” era, limiting monetization.
Fiscal Policy Failure: Persistent deficits (7% of GDP), low tax revenue (17% of GDP), and unaddressed entitlements (e.g., $20 trillion for Social Security over a decade) make debt reduction unlikely, regardless of political party.
