Top US banker Jamie Dimon of JPMorgan Chase warned Saturday that the United States needs to avoid defaulting on its debt, saying the possible repercussions are unfathomable.
“You don’t want to know,” Dimon said when asked what would happen if the US is forced into default because Congress did not raise the country’s borrowing limit.
“It would ripple through the world economy in a way that you couldn’t possibly understand,” he said at a discussion held by the Institute of International Finance, a leading forum for the world’s banks.
He said it would shock the money market, where trillions of dollars in cash are invested in ostensibly top-quality securities like US debt based on expectations that the borrowers will not default.
“You don’t know the ripple effect of that through money-market funds,” stressed Dimon, head of the largest US bank by assets.
“The money markets are the most fickle markets in the world, they’re like a rabbit.”
Dimon was speaking as the White House and congressional Republicans remained deeply at odds over passing a budget and raising the US debt ceiling, a move needed to ensure the government can continue to pay its bills.
The US Treasury has repeatedly warned that as soon as October 17 it will be short of cash and forced to default on its obligations, though not saying whether it would skip debt payments or others, like social security payments to retired Americans.
With no compromise apparent, and the government partially shut down now for 12 days due to lack of a budget, Dimon warned that the deadline was looming.
“As you get closer to it, the panic will set in,” he said.
On the other hand, he emphasized: “The US cannot default. I think every responsible person knows that.”
Progressive reformer claims victory in fiercely-contested Queens DA race
Progressive reformer Tiffany Cabán has declared victory in her campaign versus Melinda Katz in the Queens District Attorney race.
With 99% of precincts reporting, Cabán held a lead of 1,090 votes, The New York Times reports.
Cabán was backed by Rep. Alexandria Ocasio-Cortez (D-NY) and Sen. Bernie Sanders (I-VT).
Katz was backed by Rep. Gregory Meeks (D-NY), who chairs the Queens Democratic Party, and Rep. Hakeem Jeffries (D-NY)
New 2020 poll shows Trump trailing all Democrats — some by double-digits
President Donald Trump trails all of his Democratic rivals in hypothetical matchups of the 2020 presidential race, according to the result of a new poll released Tuesday.
The survey, conducted by Emerson Polling, found that the president lags behind former vice president Joe Biden and Sen. Bernie Sanders, I-Vt., by 10 points nationally — 45 percent to 55 percent. He also trails Sen. Elizabeth Warren by six points — 47 percent to 53 percent —and Sen. Kamala Harris, D-Calif., and South Bend, Ind. Mayor Pete Buttigieg by four points — 48 percent to 52 percent.
Beto O’Rourke’s ‘war tax’ policy proposal is straight out of ‘Starship Troopers’
Amid an overcrowded Democratic presidential candidate field, it's hard to distinguish yourself from the pack if you don't slot easily into the scale that runs from "pro-corporate centrist" to "left-populist." If you're former Texas congressman Beto O'Rourke — who falls somewhere in the middle, politically, and somewhere towards the top, looks-wise — you pull a militaristic policy proposal out of your hat that recalls some of the most campy pseudo-fascist sci-fi ever written.