• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

The $34 trillion mountain of national debt is a ‘boiling frog’ situation for the US economy, JPMorgan warns

2 years ago
in Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
86
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

The $34 trillion mountain of national debt is a ‘boiling frog’ situation for the US economy, JPMorgan warns

The US’s $34 trillion debt mountain might be a “boiling frog” phenomenon for the economy, as higher deficits and ballooning debt servicing costs could easily become unsustainable, JPMorgan warned.

A boiling frog situation is one in which people fail to act on a potential problem that grows over time, causing it to become more severe until it eventually bubbles over. A frog thrown in boiling water might jump out, but if the water comes to a boil slowly, it’s too late by the time it notices it’s being cooked.

The age-old metaphor could easily apply to America’s debt situation, the bank said in its 2024 outlook. It’s an issue that has worried economists for years, and calls for something to change have grown louder as the government continues to borrow at record volumes.

The national debt hit a fresh $34 trillion this month, the result of lawmakers lifting the US debt ceiling last year to avoid a default. The debt picture will only worsen in the coming years, according to the Congressional Budget Office, which estimates that the US’s entitlement spending, mandatory spending, and net interest payments on the debt will exceed the government’s total revenue by the early 2030s.

“The problem for the US is the starting point; every round of fiscal stimulus brings the US one step closer to debt unsustainability,” JPMorgan strategist Michael Cembalest said. “However, we’re accustomed to deteriorating US government finances with limited consequences for investors, and one day that may change (the boiling frog analogy),” Cembalest added.

Cembalest predicted that pressure from markets and rating agencies would force the government to make “substantial changes” to its taxing and entitlement programs, such as by issuing new wealth taxes.

RelatedPosts

CID Establishes Task Force to Combat Influx of Stolen Vehicles into Ghana

Government Reintroduces Free Cocoa Fertiliser Programme to Boost Sector Growth

President Mahama Directs Ministers to Fast-Track Rollout of Ghana’s E-Visa System

But it doesn’t appear likely that the US will significantly pull back its discretionary spending. That’s an issue lawmakers have been sparring over for months, with Congress having yet to approve a budget for the fiscal year.

“The US has run out of the road on that one,” Cembalest said of possible cuts to discretionary spending.

JPMorgan strategists previously predicted a “boiling frog” recession in 2023 and 2024, where aggressive central bank tightening leads to a global synchronized recession. Risks of a recession are still alive this year, Cembalest warned, though he noted that a coming downturn would likely be mild.

Source: businessinsider
Via: norvanreports
Tags: $34 trillion mountain debtJPMorgan warnsThe $34 trillion mountain of national debt is a 'boiling frog' situation for the US economyUS
No Result
View All Result

Highlights

AngloGold Ashanti Doubles Earnings and Free Cash Flow on Higher Gold Prices, Production Surge in Q2 2025

Africa’s Richest Country to Boost Continental Trade Ties After U.S. 30% Tariff Hit

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions

CID Recovers 43 Stolen Luxury Vehicles Smuggled into Ghana

2025 Mid-Year Economic Review: Fiscal Discipline is a Necessary Pain

Ledecky’s Heroics Highlight Underwhelming US Campaign at World Aquatics Championships

Trending

Business

CID Establishes Task Force to Combat Influx of Stolen Vehicles into Ghana

August 4, 2025

CID Establishes Task Force to Combat Influx of Stolen Vehicles into Ghana The Criminal Investigations Department (CID)...

Government Reintroduces Free Cocoa Fertiliser Programme to Boost Sector Growth

August 4, 2025

President Mahama Directs Ministers to Fast-Track Rollout of Ghana’s E-Visa System

August 4, 2025

AngloGold Ashanti Doubles Earnings and Free Cash Flow on Higher Gold Prices, Production Surge in Q2 2025

August 4, 2025

Africa’s Richest Country to Boost Continental Trade Ties After U.S. 30% Tariff Hit

August 4, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.