America's top banker Jamie Dimon issues chilling warning about the country's 'enemy within'
JPMorgan Chase CEO Jamie Dimon has sounded the alarm about the 'enemy within' the US, which he warned is a bigger threat than China.
Dimon claims America is suffering from a worrying 'mismanagement' issue which has the potential to 'kill us'.
'China is a potential adversary. They're doing a lot of things well, they have a lot of problems,' he said at the Reagan National Economic Forum on Friday.
'But what I really worry about is us. Can we get our own act together - our own values, our own capability, our own management?'
Dimon, the top boss of America's biggest bank, cautioned that the 'mismanagement' that occurs at all levels of government could be the biggest catalyst for the nation's economic demise.
'The amount of mismanagement is extraordinary - by state, by city, for pensions, and that stuff is going to kill us,' the billionaire banker told the forum.
The banking expert predicted the US could grow 3 percent per year if leaders fixed the issues surrounding permitting, taxation, regulations, immigration, health care, and schools in the inner city.
He added: 'We have to get our act together. We have to do it very quickly.'
Dimon, appearing at the Reagan National Economic Forum on Friday, (pictured) claims America is suffering from a worrying 'mismanagement' issue and has urged the country to 'get our own act together'
Dimon also claimed the US should be taxing carried interest, a loophole that has allowed private market investors to benefit from lower taxes.
'We absolutely should be taxing carried interest,' he said, adding to President Donald Trump 's recent campaign to close the provision long-cherished by investors.
He suggested the revenue can be used to double income tax credits for individuals with children, adding that the money will flow directly into the communities.
Carry - which refers to the part of private fund managers' compensation tied to profits generated - is currently taxed as a long-term capital gain, allowing fund managers to pay lower taxes compared to ordinary income.
Closing the loophole has been a bipartisan issue for over a decade, with successive administrations promising to close the loophole.
A 2021 Congressional Budget Office estimates that doing so would raise tax revenue by $14 billion over 10 years.
Private equity and hedge funds have opposed such legislation, saying it could potentially hurt small businesses as well as institutional investors, such as endowments, foundations and pension funds.
Industry groups in February had opposed Trump's plan to close the lucrative tax workaround.
Dimon, 69, has run JPMorgan Chase, the largest US bank, for more than 19 years, outlasting many other CEOs, and is one of the most prominent voices in corporate America.
His remarks at Friday's forum come just days after he delivered a sobering assessment of the US economy and warned the true fallout from Trump's sweeping tariff policy has yet to be felt.
During dramatic appearance at JPMorgan Chase's annual investor day, Dimon said behind the scenes of a soaring stock market lies a deep and under-appreciated risk.
He is known for his measured analysis but he believes rising costs, uncertain trade flows, and an American economy perched precariously atop artificially inflated asset prices make for an uncertain time.
'There's an extraordinary amount of complacency,' the nation's most powerful banker said on May 19. 'The last time the country saw 10 percent tariffs on all trading partners was 1971.'
Dimon pulled no punches as he described Trump's tariff strategy as 'pretty extreme,' even in its scaled-back form following an April 2 announcement that placed most tariffs on a temporary 90-day pause.
A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday - a day after a US trade court ruled the president had exceeded his authority in imposing the duties and ordered an immediate block on them.
While the exact level of tariffs that will remain on trading partners is unknown, traders expect the levies to persist in some form.
White House trade adviser Peter Navarro said on Thursday that the Trump administration will seek to enact tariffs through other means if it ultimately loses the court fights over its trade policy.
Investors remain concerned that tariffs will slow growth and reignite inflation, though deals to drop tariff increases on China and the European Union as they negotiate trading terms have reduced pessimism over the US economic outlook.
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