All parties in the US debt crisis fought: The Finance Minister shouted that he would never default. Experts said that the bond market was about to collapse. Who should the people believe?
U.S. Treasury Secretary Bescent said on a TV show last Saturday that the United States will never default on the debt, and directly criticized JPMorgan CEO Dimon's remarks that "the bond market is about to collapse" the day before yesterday. The two of them argued against each other in CBS live broadcast. Becente said that Dimon had predicted the crisis over the years but never was, while Dimon insisted that the government spent too much money to lay hidden dangers. Behind this incident is the bill Trump has just pushed, and it is expected to spend 3 trillion more in the next ten years, and Congress is quarreling.
Bester said that although the debt warning line is approaching now, the government can definitely find a way to solve it. He specifically mentioned that the new tariffs can bring additional revenue, and the fiscal deficit this year will definitely be lower than last year. However, an earlier report from the Congressional Budget Office showed that even if the new bill is not considered, the proportion of the U.S. debt to the total economy will exceed the peak during World War II within two or three years at the earliest. Trump also refused to admit it, saying that the new bill would not increase the deficit, but would stimulate economic growth.
This is not the first time that Damon has been out. As the head of the largest bank in the United States, he warned at a recent forum that the government spent too much money in the past few years, and the Federal Reserve printed too much money, the bond market had long buried bombs. He predicts that if the economy declines, the deficit will rise from 7% of GDP to 10%, but his own bank may make money by then. This trick has caused a lot of criticism, saying that he deliberately created panic to gain benefits.
The problem is now stuck in the Senate. The House has passed a bill to raise the debt ceiling, but some Republican lawmakers are worried that the debt is too large. Musk, who just resigned, also complained in an interview that the new bill wasted money and undermined the previous government agencies' money-saving plans. The White House and Congressional Republicans are still bargaining, and no one dares to say whether they will suddenly have no money to pay their debt next week.
Wall Street has been talking recently, and some people think that the government always has a way, and some people start to transfer investment. Ordinary investors can only watch the news and guess now, but most people still put their money in fixed deposits and wait for the calm. If this happens, it will directly affect mortgage interest rates, stock market and pension accounts. Now all parties are playing the time difference. Who is right? I can only wait for time to give the answer.
