Posted on 09/16/2023 9:02:22 PM PDT by lasereye
A seemingly unrelenting wave of debt is piling onto America’s balance sheet.
New data from the U.S. Treasury Department show the federal debt increased by over $296.524 billion from August 8th to September 8th, reaching a total of $32.940 trillion.
The new numbers come as JPMorgan Chase CEO Jamie Dimon issues a warning on America’s fiscal trajectory.
At a conference hosted by Barclays, Dimon told reporters that America’s rapid rate of spending is bound to have a significant impact on households.
“I just think people make a mistake to look at real-time numbers and not look at the future. And the future has quantitative tightening.
We’ve been spending money like drunken sailors around the world, this war in Ukraine is still going on. Those are really big buts. To say the consumer is strong today, meaning you got to have a booming environment for years, is a huge mistake.”
Meanwhile, Congress is facing pressure to pass a new budget before funding for the US government runs out on September 30th.
If a deal is not reached on time, about three of out five federal civilian workers are expected to be furloughed as portions of the government shut down.
Goldman Sachs says a shutdown would likely lower America’s economic growth by 0.2% per week until a deal is reached.
“Over the years, there have been many near misses and more false alarms than actual shutdowns.
That said, the ingredients for a shutdown — a thin House majority, a dispute on spending levels, and potential complications from various political issues — are present.”
Goldman Sachs says a shutdown would likely lower America’s economic growth by 0.2% per week until a deal is reached.
We get a dire warning about the incredible amount of government spending from the CEO of one of the biggest banks. We also get a warning from one of the biggest Wall Street investment banks that a failure to keep spending at the current levels is going to cause problems. Seems like they can't both be true. All a partial government shutdown does is reduce spending.
This is like when Fitch downgraded US government debt last month. They noted that:
The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden.
But Fitch also said that:
The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.
IOW they complained that the debt is out of control, but also complained that the Congress failed to automatically increase the debt ceiling, with no questions asked.
The people running the big financial institutions are largely Democrats. That may explain the schizoid nature of their statements. They are knowledgeable enough to realize that massive debt fueled spending is a problem. But they identify Republicans who want to slow that spending as part of the problem. As a result we get these Twilight Zone explanations.
Mr. Dimon speaks of “spending like drunken sailors” but one could make the point that the federal government is spending like “lying dog-faced pony soldiers”...sarc
Gotta send money to the globalist oligarchs so Plugs the Pedo gets his cut.
I’m amazed we haven’t been downgraded to “junk” status.
Nothin’ a little WW3 won’t fix.
Things are being manipulated perhaps to cover FJB’s backside.
Oil is now 91 dollars a barrel due to OPEC+ cuts.
Gas should burst over four dollars a gallon here in Pennsylvania but I haven’t seen it yet.
This weekend the French Prime Minister said gasoline stations in France are “temporarily” allowed to sell gasoline for a loss.
Sooner or later thry won’t be able to keep all the balls in the air at the same time. Or maybe shoes not balls, which one will be the first shoe to drop?
This weekend the French Prime Minister said gasoline stations in France are “temporarily” allowed to sell gasoline for a loss.
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Why would they not routinely be allowed to sell “at a loss” if they wanted to? Must be a French thing, 🤷♂️🤷♂️
Maybe “allowed to sell at a loss” is really a state directive.
“ If a deal is not reached on time, about three of out five federal civilian workers are expected to be furloughed as portions of the government shut down.”
I’m not seeing a problem.
L
they have everything on there except the welfare liability...
but medicare is on there
Gas here in Los Angeles is up to $6.39 a gallon at many stations.
Really.
Pennsylvania a very critical state and its near four dollars but hasn’t gone over yet. If it did it would be bad for Biden.
California not such a close state in elections.
Gas here in Los Angeles is up to $6.39 a gallon at many stations.
Really.
“cheap” gas up here in northern CA is now $5.18 a gallon. This place is friggin INSANE.
There’s no political will to reduce spending. We’ll have to inflate our currency. For the average American customer, that means we could see up to 20% inflation. Maybe that will force the American voter to punish the Democrats in the next election. We did that when Jimmy Carter was President.
Before folks leap to their keyboard to shout out their personal fiscal or economic philosophy, be aware that this very big number for this moment in time was not a Congressional spend.
It was the court ruling that disallowed a huge student loan erasure. The accounting is convoluted but it reduced the FY23 deficit and bumped the debt. I was quite surprised it was not held over for FY24, and the election.
As for everything else, there is no escaping the GDP equation that has government spending as G.
Capitalism has failed. This was clear in 2009 when only QE could keep the wheels turning. And since. All that stock market gain? The Fed printed trillions and handed it to companies. How could it not go up?
bttt
JPMorgan has major ambitions in China and in August (2021) won regulatory approval from Beijing to become the first full foreign owner of a securities brokerage in the country....
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