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- The US’s growing pile of debt is a “boiling frog” for the US economy, JPMorgan warned.
- Government bills will exceed revenue by the early 2030s, per a Congressional Budget Office estimate.
- But the US doesn’t look likely to cut back its discretionary spending anytime soon, the bank said.
The US’s $34 trillion debt mountain might be a “boiling frog” phenomenon for the economy, as higher deficits and ballooning debt servicing costs could easily become unsustainable, JPMorgan warned.
A boiling frog situation is one in which people fail to act on a potential problem that grows over time, causing it to become more severe until it eventually bubbles over. A frog thrown in boiling water might jump out, but if the water comes to a boil slowly, it’s too late by the time it notices it’s being cooked.
The age-old…
