> The JPMorgan Chase chief executive said on Friday that he had cautioned regulators: “You are going to see a crack in the bond market.” He added: “I’m telling you this is going to happen. And you are going to panic. I’m not going to panic. We’ll be fine.”
After scanning the transcript, I'm pretty sure he is referring to JP Morgan being fine, rather than the US economy or Americans in general.
Here's the whole interview: https://www.youtube.com/watch?v=1NHLha3jG2g
something like the "Big Beautiful Bill" is going to pass, so its not like the bond market is working in a vacuum
anecdotally, if the world didn't meltdown at the outrageous levels of ten, twenty, thirty trillion in debt...why would the world all of a sudden collapse at forty trillion in debt? if debt was a timebomb, it should have detonated decades ago
backing off the USD is a hundred year project...you need an currency from a relatively open and law-bound Great Power that has demonstrated its staying power through conflict
there isn't anyone else who fits the bill...yet
The federal government choose not to have that power, they could technically take it back at any time with only political/market confidence consequences. With a crazy guy running things, anything is possible at this point.
That's one way of downplaying what happens next...
The reason is that it makes no difference. The usd is a fiat currency and relies on trust in the institutions, in this case the fed.
If they bail out the government, then other investors will loose confidence and the rate will go up, manifest as inflation.
At this point the US citizens are going to pay massively for this. Either through hyper inflation or. Increased taxes to pay the debt.
mooreds•8mo ago