JPMorgan Chase CEO Jamie Dimon argued that America’s $22 trillion national debt is “not a critical issue today.” Dimon was asked if he thinks the growing deficit and national debt are a threat to economic growth in the U.S.
“I would say the most important thing for the federal government to do is infrastructure, work skills initiatives, innovation and reducing stifling mind-numbing bureaucracy for small business because maximizing growth is the most important thing you can do for future deficits,” Dimon said in response to a question from PJM on a recent conference call with the Business Roundtable where the group announced the results of its CEO Economic Outlook Survey.
“Having said that, and I don’t believe in this MMT theory [Modern Monetary Theory] -- net debt is 80 percent of GDP, OK? In Japan, it’s 260 percent so it is not a critical issue today. It’s not the thing that’s going to cause a complete disaster,” he added.
Dimon, chairman of the Business Roundtable, said the national debt is going to continue growing over time and it will have to be addressed eventually.
“It’s going to grow from 80 to 90 to 100 to 130 [percent of GDP] over the next 30 years, mostly driven by entitlement programs, so any rational group of people would say, ‘it’s an issue, lets deal with it before it becomes an issue’ because it will deal with itself at one point,” Dimon said. “I’m in favor of dealing with it but I’m not in favor of not doing other things first because we’ll just make it harder and slow down growth and do things that are not competitive.” https://pjmedia.com/trending/jamie-dimon-americas-22t-national-debt-not-a-critical-issue-today
Son of a liberal: " What did you do in the War On Terror, Daddy?"
Liberal father: " I fought the Americans, along with all the other liberals."
He's right to the extent that if there is enough economic growth, tax revenues increase and deficits are are less of an issue. But given Congress' love of spending and the likelihood that interest rates will go up significantly at some point, the debt is still a real problem.
Debt becomes a critical issue when you can't make the payments anymore. Japan will be unable to pay it's debt interest in about 2040. Without intervention the US will be close behind.
"Life is tough, even tougher if your stupid" John Wayne
As long as we maintain the reserve currency status and print money it's the rest of the worlds problem....... now if we lose the reserve currency status it's our problem.... paybacks a bitch....
Originally Posted by Judman PS, if you think Trump is “good” you’re way stupider than I thought! Haha
As long as we maintain the reserve currency status and print money it's the rest of the worlds problem....... now if we lose the reserve currency status it's our problem.... paybacks a bitch....
Correct!
I'm fairly shocked that somebody actually knew this.
The U.S. government owes $1.09 trillion to Japan and $1.058 trillion to China. Ireland holds $288 billion, the Cayman Islands hold $265 billion, and Brazil holds $259 billion. The government also owes money to the United States itself because it must repay government bonds that Americans bought.
The U.S. government debt is more than $19.9 trillion . The government also owes money to the South American countries of Colombia, Chile, and Peru and to the Asian countries of Russia, Thailand, South Korea, Singapore, and India. Taiwan and Hong Kong are also creditors. The U.S. owes money to Western European nations, such as Switzerland, Belgium, Luxembourg, Germany, Spain, France, and the United Kingdom. More European countries include Denmark, the Netherlands, Poland, Sweden, and Italy. Turkey, Kazakhstan, Vietnam, South Africa, and Australia are other creditor nations, and the U.S. owes money to its neighbors, Mexico and Canada.
The U.S. government also owes about $300 billion to Caribbean banks and more than $200 million to oil-exporting states. Foreign investors hold about 33 percent of the U.S. government's debt. These countries buy U.S. Treasury bonds as investments. The United States is obligated to pay back with interest the money raised through the sale of bonds.
Domestic private investors hold about 14 percent of U.S. government debt. This includes banks and individual citizens who buy Treasury bonds and expect a return on their investment.
Son of a liberal: " What did you do in the War On Terror, Daddy?"
Liberal father: " I fought the Americans, along with all the other liberals."
When I was in college the Macroeconomics instructor told us that the national debt wasn't a concern because the government could raise taxes on everyone at any time it wanted/needed to and we wouldn't have much choice but to pay them.
Of course, that was 1981 and I'm pretty sure the debt was a little more reasonable then.
KC
You can easily vote your way in to Socialism; but you'll have to shoot your way out.
I’m no economist, but all I’ve heard my whole life is how the USA is giving money to this Country and that Country. How can a Country so messed up financially (us), be so philanthropic? Not being a wise ass for a change.
I’m no economist, but all I’ve heard my whole life is how the USA is giving money to this Country and that Country. How can a Country so messed up financially (us), be so philanthropic? Not being a wise ass for a change.
Good question. I've yet to get a firm answer on it from anyone.
If debt doesn't matter to governments, why the [bleep] would I pay taxes or my bills. Oh that's right, it DOES matter to the ponzis, else they can't keep kicking the can down the road.
There's lot's of global guns pointed right at us, every day, and its [bleep] like this [bleep] that is feeding off of it.
Socialists, commies and banking chronyism is the "philanthropy" you speak of and the root of it is fiat currency and NO representation, at least not responsible. We've been socialist for close to a hundred years and any want hasn't been funded, nor many needs cured.
Every one in Congress is a crack dealing, money laundering piece of schidt.
