There have been people saying for years that the United States was on the brink of an economic collapse and it appears that this time it may be coming to pass.
The economy is still reeling from the manufactured COVID crisis that halted an economic boom that former President Trump had created. Now, inflation is on the rise, jobs are at a standstill and the national debt is has reached its zenith.
It has become so dire that even banking giants are sounding the alarm of just how imminent a collapse is.
JPMorgan Chase CEO Jamie Dimon revealed Tuesday the multinational investment bank is preparing for the “potentially catastrophic” event that the United States defaults on its debt.
According to TheBlaze, The eyebrow-raising comments were made as Democrats seek to pass a $3.5 trillion spending bill, which they claim “costs zero dollars.” Unfortunately, the Congressional Budget Office has not yet scored the bill, but some analyses indicate the bill if it becomes law, could add more than $4 trillion to the national debt.
Dimon told Reuters that JPMorgan Chase is preparing for how to conduct business if the U.S. defaults on its credit, a possibility that would cripple the U.S. economy. According to Reuters, The country’s largest lender has begun scenario-planning for how a potential U.S. credit default would affect the repo and money markets, client contracts, its capital ratios, and how rating agencies would react, Dimon said in an interview. “This is like the third time we’ve had to do this, it is a potentially catastrophic event,” he said. “Every single time this comes up, it gets fixed, but we should never even get this close.
I just think this whole thing is mistaken and one day we should just have a bipartisan bill and get rid of the debt ceiling. It’s all politics,” he added. Congressional Democrats are scrambling to find a way to raise the government’s $28.4-trillion borrowing cap before the Treasury Department runs out of means to service the nation’s debt. Treasury Secretary Janet Yellen has said the Treasury will likely exhaust extraordinary measures by Oct. 18.
How much longer can this go on before it just collapses under the debt weight?
Sound off below!
