'You're going to panic': JPMorgan CEO warns U.S. on bonds, bitcoin, and bullets
JPMorgan Chase
CEO
Jamie Dimon
has issued a stark warning about the state of the U.S. economy and national priorities, urging the government to focus on defense infrastructure—not cryptocurrency.
Speaking at the Reagan National Defense Forum in Simi Valley, California, Dimon cautioned that cracks in the bond market are inevitable due to excessive borrowing and pandemic-era spending.
'You're going to see a crack in the bond market. It is going to happen,' Dimon was quoted as saying by the Barrons. 'I tell this to my regulators… you're going to panic.'
The comment sparked concern on Wall Street during Friday's session, as Treasury yields have already been climbing. The yield on the 30-year Treasury surged 0.25 percentage points in May, its biggest jump since December, setting a 52-week high above 5%.
Dimon acknowledged his bank may weather such a crisis profitably—"We'll be fine. We'll probably make more money'—but dismissed the idea that JPMorgan welcomes economic turbulence.
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He also criticized U.S. priorities, taking a swipe at recent moves to stockpile Bitcoin.
'We shouldn't be stockpiling Bitcoin,' Dimon said. 'We should be stockpiling guns, bullets, tanks, planes, drones… rare earths.'
Calling for national unity, Dimon stressed the need to fix domestic issues like permitting, taxes, healthcare, and education—but said above all, the U.S. must preserve its global military edge.
'The most important thing is maintaining military alliances and the strongest military in the world,' he said. 'We have to get our act together—and fast.'
The warning comes amid heightened focus on U.S. debt, especially after Moody's stripped the U.S. of its last perfect credit rating earlier this year.
The JPMorgan Chase CEO also urged US not to underestimate China. "I would engage with China. I just got back from China last week. They're not scared, folks," Dimon told the audience. "This notion they're going to come bow to America, I wouldn't count on that. When they have a problem, they put 100,000 engineers on it. They've been preparing for this for years," added Dimon.
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