In a recent panel discussion at the Bipartisan Policy Center, JPMorgan Chase CEO Jamie Dimon sounded the alarm on the escalating US debt and warned of a potential economic crisis if the issue is not addressed promptly. Dimon compared the current state of the economy to that of 1982, highlighting the significant increase in debt-to-GDP ratio, which is projected to reach 130% by 2035.
Dimon emphasized the urgency of tackling the issue before it reaches a critical point, stating, “It is a cliff, we see the cliff. It’s about 10 years out, we’re going 60 miles an hour [toward it].” He further echoed former House Speaker Paul Ryan’s sentiment that the growing debt is the most predictable crisis the nation has ever faced.
The Congressional Budget Office’s latest findings indicate that the national debt is expected to nearly double in size over the next three decades, reaching a staggering 181% of the GDP by the end of 2053. This rapid pace of spending by Congress and the White House has raised serious concerns among economists.
If the projected debt materializes, it could pose a significant risk to America’s economic standing in the world. Foreign ownership of $7 trillion of US government debt could further exacerbate the situation, potentially leading to a global market rebellion. Dimon warned that this would be the worst possible outcome.
The increasing debt burden has raised questions about the sustainability of large deficits and high interest rates. Economists and experts are increasingly sounding the alarm, urging the federal government to take immediate action to address the issue.
The implications of the growing debt extend beyond national boundaries, with potential repercussions for the global economy. It is crucial for policymakers to recognize the severity of the situation and implement measures to reduce the debt and ensure long-term economic stability.
FOX Business’ Megan Henney contributed to this report.
