06/10/2026
Yesterday we attended the SJSU Economic Summit to hear esteemed economist Christopher Thornberg, founder of Beacon Economics, speak about the global, national, and local economies. Thornberg, has nothing to sell us - no books, programs, classes - just a deep dive into the numbers to provide an unbiased picture of what's going on. A common theme of the past many years is the difference between reality, and what folks think is going on as a result of the constant negative headlines. Case in point, when asked, most people say their personal economy is good, yet they think everyone else is doing poorly.
But in the 10+ years I have gone to this summit, this was the first time I remember Thornberg expressing more serious alarm about our economic future. He warned of the current overvaluation of stocks (record high price-to-earnings ratios), the out-of-control federal debt (~$40 trillion!), and the decreasing workforce due to low birthrate, a sudden immigration freeze, and mass deportations. He said if we have a serious market correction, Washington won't be in a position to react and the effects could be severe.
Thornberg reminded us that in 2026 our government will spend $6,000 more for every person than it collects in taxes. And we're on the hook for that, and all the accumulated debt - about $115,000 per man, woman, and child! Consider this: currently 15% of our federal government's budget is paying interest on our debt - more than national defense or Medicare! This is not a republican or democrat problem, it's everyone's problem, and our elected officials are not going anywhere near it, and we're the ones who will suffer.