David Stockman: It Will Take a Major Dislocation in the Bond Market to Wake Up the U.S.

David Stockman, former budget director in the Reagan administration, talks about the U.S. fiscal policy.

As he points out, the U.S. policies will have worldwide impact over time.

From Bloomberg:

I think the people would respond if they knew the fact, and if they'd been were told the truth, but they haven't been, they've been lied to for the last 10-20 years by both sides saying that we can live beyond our means, new entitlements, new tax cuts constantly, tax stimulus for everything that we could imagine, and as a result of that the country doesn't know that sacrifice is going to be required, and that everyone is going to have to give up something.

I think it's going to take a major dislocation in the bond market, a real conflaguration on the part of the people who have to buy this debt, before the country wakes up.

http://www.bloomberg.com/video/69402400/#ooid=pkNnJmMjoakJlPBtrtACxqMkGNvUoUaB