March 7, 2023 | Eul Basa

The U.S. Debt Situation Could Be Catastrophic For The Global Economy


Experts warn that the global economy could be on the verge of destabilization if the debt situation in the United States is not swiftly addressed. According to Jamie Dimon, the CEO of JPMorgan Chase, US lawmakers must reach an agreement on raising the debt ceiling if a widespread catastrophe is to be avoided. 

Appearing on CNBC’s “Squawk Box,” Dimon called for the end of political discord within the United States government, urging legislators to come together and focus on the pressing matter. He warns that failure to reach a resolution could result in disastrous consequences worldwide.

“Of course, Democrats can blame Republicans and the Republicans can blame the Democrats…That is part of the financial structure of the world. [But] this is not something we should be playing games with at all,” he said.

“Americans should understand that the American financial system is basically the crux of the financial system of the world and we shouldn’t play with it.”

us-capitol-buildingPublic Domain Pictures

Tensions were high in Congress this week as Democrats and Republicans remained at an impasse over the federal government’s running up of its $38 trillion borrowing limit. Currently, the Republicans hold a slim majority in the House of Representatives, and they have voted against raising the debt ceiling without exacting spending cuts. Democrats, on the other hand, have kept their firm stance on raising the debt ceiling free of conditions.

"There will be no negotiations over the debt ceiling," said White House deputy press secretary Olivia Dalton on Thursday. "Congress must address this without conditions as they did three times under Donald Trump."

Investors are hoping that Congress can reach a deal to avoid default, but it's unlikely that the process will be a swift one. That said, dragging out the negotiations would only contribute to the growing market volatility.

Meanwhile, corporate leaders are on edge about the current stalemate. David Solomon, the chief executive of Goldman Sachs Group Inc., says that he and his firm will take every opportunity they can to "engage with people in Washington" and emphasize the severity of the current situation.

Sources: 12


READ MORE

Your 2025 Retirement Checklist

If you've finally hit 65 or 70 and think this will be the year you'll retire, congratulations! But before you take that monumental step of giving up work for good, here's your must-do retirement checklist.
January 10, 2025 Jack Hawkins

If You'd Bought These Stocks, You'd Be Rich Now

Nothing in the stock market is guaranteed. It's a gamble—and even the people that know the most and understand it the best often lose lots of money. But there is also the opportunity to make lots of money if you make the right choices/guesses/get lucky. Like if you'd bought any of the following stocks...
December 11, 2024 Jesse Singer

You Should Always Pay For These Items In Cash

They say that cash is still king despite the prevalence of credit cards and debit cards in today's money-moving world. Let's explore when you should use cash and why you should pay for these items in cash.
January 14, 2025 Jack Hawkins

You Can Get These High-Paying Jobs With Just A Certificate

These are the high-paying jobs you can get with just a certificate from a college or online program.
December 2, 2024 Jack Hawkins
influencermarketing_internal

Why Start-Ups Should Rely On Influencers Too

Some say influencer marketing doesn't work and that it's on its way to obsoletion, but the reality is quite the opposite.
June 27, 2023 Eul Basa
Take Out Trend Internal

Why More People Are Opting for Take-Out

Explore the rising trend of choosing take-out over fine dining due to escalating costs. Dive into the financial reasons behind this shift, the hidden expenses of dining out, and the benefits of opting for the comfort of home-cooked meals. Understand how changing economic and social landscapes influence dining choices.
September 16, 2023 Allison Robertson



Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team