Wharton Professor Predicts $34 Trillion in Debt Will Cause Meltdown

The U.S. national debt has reached $34 trillion under President Joe Biden, posing a serious threat that could lead to a financial crisis by 2025, according to a warning from Wharton professor Joao Gomes.

Gomes cautioned that if there are plans for significant tax cuts or additional fiscal stimulus, it could trigger a market rebellion, causing interest rates to spike and potentially leading to a crisis in 2025. He stressed the importance of addressing the debt issue before it derails the next administration.

Concerns about the escalating debt have also been raised by other financial leaders:

• JPMorgan Chase CEO Jamie Dimon warned of a potential market rebellion.
• Bank of America CEO Brian Moynihan expressed unease about admiring the debt bubble without taking action.
• Author Nassim Taleb cautioned about a possible economic death spiral.
• Federal Reserve Chairman Jerome Powell emphasized the need for a serious conversation about the debt.

Gomes urged voters to ask tougher questions of politicians who are not taking the debt threat seriously and emphasized the importance of making the debt a central issue in the upcoming presidential election.

Ultimately, Americans will bear the consequences of the mounting debt, as Gomes pointed out that without buyers for the debt, there could be a significant financial accident.