"Like many other economists and experts, Dimon warns that at some stage the government will race a reckoning: They will try to sell debt and find either the market no longer wants to buy it, or the risk has increased to a point where they demand even higher interest payments. The metric that speculators are most concerned by is the debt-to-GDP ratio, in layman's terms: If an economy is growing fast enough to repay and service its debts."
"President Trump has touted a range of unusual ways to bring America's national debt into check: Charging millionaire immigrants for 'gold card' visas, his tariff regime, and the creation of the Department of Government Efficiency. But it's not enough to convince Jamie Dimon that a debt crisis of America's own making isn't coming down the line. Dimon, the CEO of JPMorgan Chase, has warned for some time that Uncle Sam's $37.5 trillion national debt is unsustainable."
The U.S. national debt stands at $37.5 trillion and the debt-to-GDP ratio is about 120%, with projections exceeding 150% by 2055. Markets may at some point refuse to purchase government debt or demand much higher interest rates, increasing borrowing costs. Tariffs, charges on immigrants, and a new Department of Government Efficiency are unlikely to resolve the structural deficit. Bipartisan policy action modeled on Simpson-Bowles and faster economic growth unlocked by lighter regulation and freer trade are presented as the durable means to reduce the deficit and restore a sustainable debt-to-GDP ratio.
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