JPMorgan's Jamie Dimon Raises Alarm Over Potential Global Market 'Rebellion' Due To Record US Debt: 'That Hockey Stick Doesn't Start Yet'

The CEO of JPMorgan Chase & Co, Jamie Dimon, cautions of a potential ‘rebellion’ in global markets prompted by the escalating U.S. national debt during a recent panel discussion at the Bipartisan Policy Center in Washington.

What Happened: In the panel discussion on Friday, Dimon expressed unease over the escalating U.S. national debt, as reported by Business Insider. The U.S. debt-to-GDP ratio currently sits at approximately 120%, with the national debt exceeding $34 trillion. Dimon anticipates the debt-to-GDP ratio will reach 130% by 2035.

Dimon warned of the worldwide implications of the U.S. debt, as foreigners hold $7.6 trillion of the debt. “That hockey stick doesn’t start yet,” he said.

“When it starts, markets around the world… there will be a rebellion,” he added.

According to Dimon, the rising debt could exceed the U.S. government’s total revenue by 2030, as projected by the Congressional Budget Office.

“This is about the security of the world,” Dimon emphasized, underscoring the need for a stronger America and military.

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Why It Matters: The growing U.S. national debt has been a topic of concern for some time now. The national debt surpassed $34 trillion at the start of 2024, marking a significant increase from when it first hit the $1 trillion mark in 1982.

Dimon has previously warned about the potential for a financial crisis due to the U.S.’s ballooning national debt. He compared the situation to a “boiling frog” scenario in January also, suggesting that the crisis could become unmanageable if the increasing debt issue is not addressed promptly.

Dimon’s recent comments build upon his earlier warnings from May and February, where he cautioned that a U.S. debt default could lead to financial panic and that declaring an early victory against inflation could be premature.

These warnings underscore the gravity of the U.S.’s escalating national debt and its potential global implications.

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Benzinga file photo by Dustin Blitchok.