JPMorgan Chase CEO Jamie Dimon has expressed concerns about the potential for significant turmoil in the US economy. He highlights the country’s current debt situation, with national debt exceeding $34.1 trillion, an all-time high.
Economic Precipice: A CEO’s Forecast
Dimon pointed out the high interest and inflation rates in the US, reflecting on the changes in the economy since 1982. Back then, unemployment was at 10%, and the national debt was about 35% of the GDP.
The CEO noted a worrying shift in the debt-to-GDP ratio, now over 100% and projected to reach 130% by 2035. He warned of a potential “rebellion” due to the large amount of US debt owned by foreign entities.
Dimon also discussed the lingering effects of COVID-19 on the US economy and the Federal Reserve’s recent interest rate adjustments. He suggests that without significant intervention, the economy could approach a dangerous precipice over the next decade.
Regarding Bitcoin, Dimon remains a skeptic, dismissing its utility despite the optimism of other financial leaders. However, some believe that a US economic downturn could positively impact Bitcoin’s value, and the approval of a spot Bitcoin ETF in the US has eased regulatory barriers for institutional investors.