Wharton Business Prof Says Financial Turmoil Coming

We know it’s coming…we just don’t know when.  We have said numerous times that it seems like the staying hand of the Lord is the only thing keeping the current system up.  We hope it’s the rapture that is the final trigger that sends the current system into collapse.  Even so, come Lord Jesus!

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 America's $34 trillion debt will disrupt the global economy as early as next year if the next president pursues expensive policies, a finance expert has warned. 

Wharton Business School Professor Joao Gomes has said the public debt mountain marks a 'moment in history' - and it could 'derail the next administration'.

'Toward the latter part of the decade we will have to deal with this,' he told Fortune. 'It could derail the next administration, frankly. 

'If they come up with plans for large tax cuts or another big fiscal stimulus, the markets could rebel, interest rates could just spike right there and we would have a crisis in 2025. 

'It could very well happen. I'm very confident by the end of the decade one way or another, we will be there.'

Experts are currently predicting that the eye-watering debt-to-GDP ratio will reach 190 percent by 2050 if it remains on its current trajectory. 

The last two administrations - run by Biden and Trump - oversaw the largest deficit accumulations since Franklin D Roosevelt during the Great Depression in the 1930s, according to Bank of America's Research Flow Show team in February. 

This was partly due to the impact of the coronavirus pandemic on America's economy and worldwide. 

But Gomes warned he doesn't think it will be considered a big issue by either the Republican or Democrat parties.

'It's a really obvious moment in history for us to say: "OK, what are our choices, what can we feasibly do, who has the better plan?"' he told Fortune. 

'I suspect neither party is interested in that and it might all be pushed under the rug.' 

Gomes is the Senior Vice Dean for Research, Centers and Academic Initiatives at Wharton Business School, part of the University of Pennsylvania. 

US national debt reached a record high of $34 trillion at the end of 2023. Data published by the Treasury Department showed that outstanding federal borrowing soared to eye-watering figure on December 29. 

The staggering figure, which is a major point of contention between Republicans and Democrats, is equal to $101,233 in federal debt for every person in America, according to the Peter G. Peterson Foundation. 

The ballooning deficit means the US government spends more than $1.8 billion a day on interest payments alone, the bipartisan group found, which it said threatens America's economic future.

Experts warn that a higher debt load could put upward pressure on inflation, keeping interest rates higher and pushing up the cost of household borrowing. It could also impact major programs including Social Security and Medicare.

https://www.dailymail.co.uk/news/article-13152123/Wharton-professor-predicts-2025-financial-meltdown-34-trillion-debt-set-derail-administration.html