The economy remains a cause for concern, as there is an inflationary economy, coupled with Biden’s failure to address the debt problem, making a financial collapse seem more and more likely. While markets may be showing apathy towards the situation in the short term, in the long run we could be facing severe economic hardship if steps are not taken to curtail it soon.
Anyone who has followed Jamie Dimon knows he does not hold back when he speaks about the economy and the dire situation America finds itself in.
Daily wire reports, Jamie Dimon, chief executive of JPMorgan Chase, expressed concern about the national debt, expressing concern that the debt will eventually cause a financial meltdown, despite the market’s apathy.
In an interview with Fox Business host Maria Bartiromo, Dimion, widely regarded as one of the most influential Wall Street executives, said pension plans would have to be sold when Treasury Treasury securities failed to finance deficit spending.
Dimon stated “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.”
The national debt has reached $31.5 trillion even as interest rates rise, escalating maintenance costs. According to a recent study by economists at the Wharton School at the University of Pennsylvania, a 30% decrease in spending or a 40% increase in taxes would be necessary to handle current deficit spending and future obligations. During the past several decades, both Republican and Democratic administrations have seen increases in debt.
There was more bad news when it came to consumer spending, and savings accounts.
In addition, Bartiromo and Dimon discussed the general level of indebtedness among consumers and businesses. During President Joe Biden’s tenure, consumer loans increased from $1.5 trillion to $1.8 trillion, according to Federal Reserve data. According to the Bureau of Economic Analysis, personal savings rates have declined from 20% to less than 3% over the same period, marking a significant decline from before the lockdown-induced recession.
Despite a lackluster growth year that saw two quarterly contractions, Dimon said that “strong” consumer sentiment coupled with rational policy prescriptions from the new Congress could help the economy expand by 3%. Dimon called for reforming the regulatory system that currently slows “the formation of businesses,” supporting domestic energy companies building pipelines, and halting illegal immigration among other things.
One thing is for certain Joe Biden is no the leader we need to get us out of the looming financial disaster that this country is heading towards. The only plans that Biden and the Democrats put out increase the national debt, and continue to kick the can down the road for others to fix in the future when their terms are over. There needs to be an immediate overhaul in the budgets, all pork needs to be cut from bills, and the budget needs to get to a zero based budget. This will allow us to begin to pay down the debts of this country, and secure financial solvency for future generations. If Biden continues we will be a nation of debtors.
Let’s continue this conversation, in the comments below.