Amid the ongoing BRICS de-dollarization initiatives, JP Morgan has made a major prediction regarding the geopolitical impact on the United States. Specifically, the bank’s CEO, Jamie Dimon, spoke with the Wall Street Journal regarding the trajectory of the US economy.
Dimon has not been shy about his stance on the ongoing issues facing the economy. Whether they be geopolitical concerns, inflationary struggles, or the impending US debt crisis that continues to go unnoticed. The JP Morgan CEO, ultimately, predicts the country to mirror the same fate that befell it in 1973.
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JP Morgan CEO Talks US Economy’s Worrying Fate
Throughout the last year, the BRICS economic alliance has continued to establish itself as a clear global power. Its presence and commitment to native currency promotion have created the impending multipolarity of the global economy. However, they have also had an adverse effect on the Western powers who currently rule much of that global finance sector.
The tides could be changing, with one major economic institution believing that there could be a host of negatives in store. Specifically, amid BRICS de-dollarization initiatives, JP Morgan CEO Jamie Dimon has made a major announcement regarding the US economy.
When speaking with the Wall Street Journal, Dimon discussed the potential negatives that could be in store. The JP Morgan executive identified a “huge amount of fiscal deficit” and quantitative easing as the overall pressure facing the economy. However, he noted how they will have to contend with future concerns.
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“A lot of things in the future are inflationary: the green economy, the re-militarization of the world, obviously the deficits which basically aren’t to go away as far as the eye can see, and geopolitics. All that puts me on the side of caution that things may not go as well as people expect,” Dimon said.
Overall, he noted that the chances of a soft landing are low. Moreover, he drew parallels between the current US economy and the 1970’s. “I point out to a lot of people, that things looked pretty rosy in 1972. They were not rosy in 1973.”
In 1973, the US economy entered into a recession, which Dimon notes is a possibility. Specifically, he states that investors too often “get lulled into a false sense of security.” Conversely, Dimon notes that security could pave the way for near tragedy amid the modern economic landscape.