America's largest bank JP Morgan has issued a stark warning about the outlook for the US economy and the dollar. The world's leading bank noted the $34 trillion in debt that is weighing on the U.S. economy and threatening markets. The bank warned that the US economy is now like one “Boiling Frog” waiting for a disaster to happen. JP Morgan's negative outlook on the US economy and the dollar comes as the BRICS nations seek to overturn their global dominance.
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For the uninitiated, the term “boiling frog” is a metaphor that describes the failure to take action against a problematic situation. The syndrome eventually increases in severity until it reaches catastrophic proportions and the US economy goes in the same direction. Read here how many sectors of the US economy will be affected if the BRICS countries stop using the dollar.
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BRICS: JP Morgan says US debt and economy now like a 'boling frog'
Source: stock.adobe.com
The U.S. national debt surpassed $34 trillion this month in January 2024, reaching an all-time high. Debt is growing at an uncontrolled pace that could have devastating effects on U.S. stock markets. “The problem for the US is the starting point; “Each round of fiscal stimulus brings the U.S. one step closer to making its debt unsustainable.” said JP Morgan strategist Michael Cembalest.
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Breaking News: 🇺🇸 National debt exceeds $34 trillion for the first time ever.
– Watcher.Guru (@WatcherGuru) January 2, 2024
“However, we are used to deteriorating U.S. government finances with limited impact on investors. And one day that might change (the boiling frog analogy). The US has lost its way on this issue.” Harpsichord added.
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JP Morgan's warning about the US economy is consistent with the ideals of the de-dollarization efforts initiated by the BRICS countries. While the threat of debt is great, the challenge to the U.S. economy from the BRICS is another threat America must face. If left unchecked (like debt), this cocktail is a recipe for disaster and the BRICS could collapse the US economy.
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