The CEO of JPMorgan Chase Bank, the largest bank in America, has revealed that the multinational investment bank is preparing for the “potentially catastrophic” event that the United States defaults on its debt.
CEO Jamie Dimon told Reuters News that JPMorgan Chase is preparing for how to conduct business if the U.S. defaults on its credit, a possibility that would cripple the U.S. economy.
U.S. Treasury Secretary Janet Yellen has told Congress that the U.S. government would enter default if Congress does not act by Oct. 18 to raise the U.S. Government debt ceiling.
But Republican lawmakers oppose raising the debt ceiling. And they have urged Democrats, who control the Senate, to take action on the nation’s borrowing limit through budget reconciliation. But Democrats have refused.
As the U.S. divisions of partisan politics are again complicating efforts to ensure the government stays funded and meets its debt obligations.
Financial brinkmanship has become a regular feature of U.S. politics over the past decade thanks to ongoing partisan polarization, with debt ceiling deals coming down to the wire.
So the country’s largest bank has begun scenario-planning for how a potential U.S. credit default would affect the repo and money markets, client contracts, its capital ratios, and how ratings agencies would react.
Credit rating agencies have warned that defaulting could force a further downgrade of the U.S.’s credit status, similar to what happened during the 2011 debt limit negotiations—an event that led to a selloff now known as Black Monday.
The U.S. Treasury Secretary has said the U.S. risks “widespread economic catastrophe” if Congress fails to raise or suspend the U.S. debt limit.
And JPMorgan Chase CEO Jamie Dimon has said that a scenario in which the U.S. defaults on debt is “potentially catastrophic.”
The Biblical prophecies (Revelation 13) foretell that there will be economic catastrophe in the prophetic Last Days signaling the world is nearing the end of this age and the coming of Jesus Christ.
These events and conditions happening now are warning signs pointing to the nearing fulfillment of the Last Days prophecies at the end of this age revealing it’s time to prepare now for the nearing appearance of Jesus Christ for His Church by being born again spiritually into the Kingdom of God as Jesus said we must (John 3) and His Apostles who were authorized (Matthew 16:19) described how (Acts 2).
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