Investor warns of 'Civil War' as national debt problems loom
WASHINGTON (TND) — Soaring government debt has influential investors sending a stark warning about the future of the U.S. economy. It's a problem that could lead to monumental change if it's not dealt with according to two influential investors.
J.P. Morgan Chase C.E.O. Jamie Dimon told Sky News this week the national debt shouldn't be on the back burner.
I’m hoping the government really focuses on the deficit and still have good growth, but how can we reduce that deficit? At some point it will cause a problem and why should we wait?" he said.Bridgewater Hedgefund Founder Ray Dalio joined him with a warning about the $34.7 trillion and growing debt but took it a step further. In an interview with the Financial Times, the billionaire investor estimated that the probability of a Civil War was around 35% to 40%.
Societal tensions, geopolitical conflicts, and partisan divisions further exacerbate the crushing debt number. He went as far as to say to the outlet the country was "on the brink."
Dalio didn't rule out people could take up arms against each other in a modern redo of the 1860s, but he saw the Civil War as more of a tribal polarization. Dalio described a scenario to the outlet, saying “Where people move to different states that are more aligned with what they want and they don’t follow the decisions of federal authorities of the opposite political persuasion”.
Dalio has been worried about an upending of society for years and described the upcoming election as a test of democracy.
In a lighter moment, he pointed to the unity displayed at a Taylor Swift concert he attended as something the country needs. He even half-jokingly suggested she'd be a decent presidential candidate herself.
The underlying message? The country needs a unifier, he said.
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