Global Bankers Are Suddenly Worried About The Soaring US National Debt
ZeroHedge, May 21, 2024 – Excerpts:
In January of this year JP Morgan CEO Jamie Dimon argued in an interview with Fortune Magazine that the record US debt ‘Is a cliff…and we’re going 60MPH towards it.” He claimed that the situation was a global market rebellion waiting to happen. His comments preceded reports that the national debt was increasing by approximately $1 trillion every 100 days due to the Federal Reserve’s interest rate hikes. US debt has climbed over $11 trillion since March of 2020.
It’s a problem that bankers should have been able to predict well in advance: The inevitable Catch-22 scenario in which the Fed must either raise rates to stop inflation but cause debt to skyrocket, or, the Fed must lower rates and return to QE to alleviate debts but also trigger an even greater inflation crisis.
The bottom line? There’s no way out. While Jamie Dimon suggested the economy was headed off a cliff in another ten years, it’s likely the threat is approaching much sooner.
Fed Chair Jerome Powell noted in remarks Tuesday to an audience of bankers in Amsterdam that: “We’re running big structural deficits, and we’re going to have to deal with this sooner or later, and sooner is a lot more attractive than later…”
The Congressional Budget Office (CBO) now estimates that debt held by the public compared to GDP will rise to “an amount greater than at any point in the nation’s history,” caused by surging deficits. We witnessed the first sparks of a debt crisis in spring of 2023 with five bank failures, until the Fed stepped in and stalled the avalanche with its backstop program. The assertion by global bankers is that the next crisis will be sparked in markets (rising bond yields spilling over into equities)….
[Dimon]: “The problem will be caused by the market and then you will be forced to deal with it and probably in a far more uncomfortable way than if you dealt with it to start.”…
The greater problem which most international and central bankers will deny is the threat to the US Dollar and US treasuries. An exponentially expanding debt could lead foreign investors to question if the US will be able to cover its debts, which may lead to more investment in short term treasuries over long term bonds, or a hands off approach to all dollar denominated debt instruments. A dollar crash would be the logical consequence.
Of course, one thing financial elites fail to mention is what the practical solution would be to the debt problems they describe? One might argue that this is a ploy by bankers to convince the public that a return to the printing presses is “necessary” in order to prevent a deflationary spiral.
Banks would be the primary beneficiaries should the Federal Reserve bring back QE…
________________________
The Leviticus 25 Plan will effect a stunning 180-degree reversal of America’s ‘through-the-roof’ federal budget deficits, generating $112.6 billion annual budget surpluses (2025-2029), versus projected $1.795 trillion annual deficits for the same period.
And just as importantly, it will eliminate trillions of dollars of debt and restore financial security for millions of hard-working, tax-paying American families.
The Leviticus 25 Plan retargets Federal Reserve liquidity flows. Instead “banks being the primary beneficiaries” of future Fed liquidity flows, the liquidity flows they receive will pass first through the hands of U.S. citizens – and then on to the banks in the form of debt reduction/elimination.
The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens. It is a comprehensive plan with long-term economic and social benefits for citizens and government.
The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (15851 downloads )