Jamie Dimon claims the U.S. government debt of $31 trillion isn’t “today’s problem,” but trying to paying off the debt one day will be a “hockey stick” to the economy and Americans’ pocketbooks. It’s about 105% of the GDP.
“I’m talking about on the day that America can’t pay its debt, that has potentially disastrous outcomes. Once American debt goes into default, a lot of people can’t own it anymore, and American debt doesn’t cross-default, but it’s cumulative,” the CEO told host Maria Bartiromo.
“The [Treasury bill] defaults, and the next week T-bill defaults, the next week T-bill defaults, pension plans have to sell,” Dimon said. “It is so potentially dangerous we shouldn’t get anywhere near it. And after all the shenanigans of politics, we’re going to have to fix this. I think it’s very bad for the nation to constantly be looking at this type of thing.”
He seemed more critical of Republicans trying to shut down the government, but when we do, we only shut down government employees who can take respites without a problem – temporarily – and they get back pay.
We are doing this as we are destroying the petrodollar, and BRICS is gaining more and more applicants. Biden decided to weaponize the world financial system over Ukraine. Once we lose the dollar’s value and can’t print money, we become a poor country.
The Feds currently seem intent on paying off the debt by raising interest rates.
High debt to GDP and printing money is not sustainable. Yet, that’s what we keep doing, and both parties are guilty.
The Economic Collapse Blog says this about the weak economy:
The “experts” on television are endlessly debating about whether or not we are going to have a “recession” this year, and meanwhile, economic activity is imploding all around us. The number of homes being sold in this country each month has already fallen by a third. The number of job cuts in November was 417 percent higher than it was during the same month a year earlier, and at this point, even Amazon is laying off thousands of workers [18,000]. The Federal Reserve has declared war on inflation, but prices continue to spiral out of control. In fact, vegetables are 80 percent more expensive now than they were 12 months ago. Meanwhile, the financial markets continue to plunge. A third of the value of the Nasdaq has already been wiped out, and more than two-thirds of the value of all cryptocurrencies is already gone.
Goldman Sachs is planning to lay off as many as 3200 employees. Coinbase is cutting 920 jobs. Salesforce Inc. said last week it would cut 10% of its staff. Stitch Fix Inc. said it is trimming 20% of the company’s salaried jobs. Vimeo Inc., a video-sharing platform, said it would lay off 11% of its staff. McDonald’s Corp. said it was planning to make “difficult” decisions about changes to corporate staffing levels. Food-delivery startup Wonder Group is laying off staff as the company overhauls its business strategy.
Bed Bath & Beyond is closing 150 more stores to save itself.
And wages aren’t keeping up with inflation.