The National Debt: Everyone acknowledges the problembut nothing is being done about it. In fact the primary efforts as exemplified by both presidential candidates only increase the national debt, At some point there will be a financial crisis and the problem will no longer be ignored. I think it's too late to do anything about the national debt given that we are due for a very severe recession as a result of the past 35 years of reckless Fed monetary policies and extreme government spending. AND IT'S A GLOBAL PROBLEM (watch China's economy implode). Congress has to fund the govrnment by October 1. It's an election year and no one wants to be accused of shutting the government down. So, I expect a CR to be passed to fund the government past the election. The next president will have to deal with the financial crisis.
CEO of JPMorgan warns US of economic fate worse than recession: 'The worst outcome' (msn.com)
Excerpts:
"The worst outcome is stagflation," said Dimon. "And by the way, I wouldn't take it off the table."
The economic consequences of stagflation may cause retirement savings to go down as well as the stock market to crash; it was last seen in the U.S. during the 1970s, according to Investopedia.
While inflation in August grew less than expected at 2.5%, the outlook for the federal debt is bleak Interest payments due in October on the national debt now exceed the costs of both Medicare and the national defense budget. National debt may contribute to further inflation on the horizon.
"So, it's hard to look at [it] and say, 'Well, no, we're out of the woods.' I don't think so," said Dimon.