JPMorgan’s Jamie Dimon warns growth alone won’t prevent national debt crisis

But it is not enough to persuade Jimmy Damon that the American debt crisis does not come down on the line.

Demon, CEO of JPMorgan Chase, warned for some time that national debt worth $ 37.5 trillion. Like many economists and other experts, Dimon warns that the government will lose at some point: they will try to sell debts and find either the market no longer wants to buy it, or the risks have increased to the extent that they demand the payments of high benefits.

The scale felt by the most interested speculators is the ratio of debt to the gross domestic product, in terms of secularism: if the economy grows enough quickly to pay its debts and service. If the growth slows down away from borrowing, the lenders will wonder if they will return returns to their investments.

ST Louis Fed calculates that at the present time, the ratio of America is about 120 % – although the CBO budget office (CBO) is expected to exceed this 150 % by 2055.

“The deficit must one day be descended,” Damon told CNBC-TV18. “Growth is one of the ways to abandon it, but in the end, we will have to have a kind of things to make more rational decisions about impotence.”

The Simpson-Powles committee was an effort launched under the Obama administration in 2010 to address national debt, although many recommendations that the Authority made failed because it did not get enough support from all over the political spectrum.

While Damon said that the Trump administration was more developed, he warned: “But we have not really faced the problem of financial deficit yet. Growth will do some of that, I don’t know if he would do all of this.”

Of course, the United States is not the only nation that has high debt levels in the sky: the debt ratio to the GDP in the UK exceeds 96 %, France is about 113 % and so on.

Damon said: “I don’t know when it becomes a problem.” “I can give you a logical argument that it can become a six -month problem, I can give you a logical argument that it may be six years, but it will become a problem. Like most problems, you are dealing better with the problem than leaving it.”

Find balance

There are two options to restore debt to GDP to a healthier balance: either cut off spending to reduce borrowing, or increase growth. This is the last option that Damon prefers, who led the largest bank in America two decades ago.

Damon describes himself as a “free trade man”, although warnings that commercial spending and non -fair national security should be in thinking, and he said he hears similar noise from people within the administration.

He added that although the numbers show the definitions “it may collect $ 400 billion or so, and so … the big big bill has a lot of motivation next year.” In fact, most economists are outside the agreement that customs tariffs will compensate the bill only instead of dropping it. CBO is estimated that it will add about $ 3.4 trillion to national debt, although the customs tariff between 2025 and 2035 will make 3.3 trillion dollars from it.

Damon, 69, argued that the organization impedes America’s ability to grow (and a balance of its books as a result): “I think that the world’s organization may slow investment, allow, and build things. Any person you talk to in any industry will tell you that it is almost longer to obtain permits and combat litigation of what you are trying to build what you are trying to build.

Damon added: “We need a growth strategy … Growth is what allows you to pay taxes and pay social safety networks, which means that you need jobs, you need to work.” “It is good that they are paying it, I think many governments did not pay that.”

Fortune Global Forum Returns 26 to 27 October, 2025 in Rydah. Executive chiefs and world leaders will meet for a dynamic event for the call only forms the future of business. Apply for an invitation.