The rising US debt numbers are now urging several billionaires in the United States to bring attention and scrutiny to the stark debt development. The debt metrics of the US are worsening with each passing second, inching towards crossing the $34 trillion mark.
Moreover, the detrimental debt numbers are taking a toll on the US economy as a whole, compelling other nations like China to dump US bonds over such grave debt concerns.
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China Dumps US Bonds Worth Billions
Source: WatcherGuru
In a new development, China dumped 53.3 billion worth of US bonds in Quarter 1. The said move was done primarily to bolster the Yuan against the US dollar. The development later pitched out another theory, adding how the dumping of US treasuries by China has also been done over security and concerns about further delayed rate cuts that were adding collective pressure on China.
Furthermore, the increasing rivalry between the US and China is also part of the rising “de-dollarization” narrative, which the BRICS nations are collectively fueling and giving shape to. Such developments can adversely affect the US economy and the dollar, later spreading mayhem in space.
Billionaires Voice Alarm Over Rising Debt Numbers
With peaking US debt metrics and the government interest expense crossing the $1 trillion mark, several industry experts and billionaires have now joined the debate to sound alarm on the rapidly growing debt data.
Sharing his input on the brimming US debt numbers, Jamie Dimon, CEO of JP Morgan Chase, shared how the surging debt scenario will be very “uncomfortable” for the economy to deal with later if not handled with caution right now.
“At one point, it will cause a problem. The problem will be caused by the market, and then you’ll be forced to deal with it in a far more uncomfortable way than if you’ve dealt with it from the start.“
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Another finance titan, Ray Dalio, the CEO of Bridgwater Associates, also outlined his concern over the bubbling US debt statistics.
“I am concerned about the Treasury bonds because of the high debt levels, which high interest rates are adding to. I’m also concerned about softening demand to meet supply. Particularly from international buyers worried about the US debt picture and possible sanctions.”