Fred Smith, the founder and executive chairman of FedEx, has voiced serious concerns over the United States’ surging public debt, highlighting its potential to precipitate a catastrophic fiscal crisis.
Smith underscored the alarming projections from the Congressional Budget Office (CBO), which forecasts the U.S. federal debt held by the public to escalate from 99 percent of the gross domestic product (GDP) in 2024 to a record 116 percent by 2034, and further exceed 170 percent by mid-century.
Smith also highlighted the risk posed by the BRICS alliance to the U.S. dollar’s status as the world’s primary reserve currency.
Smith emphasized, “This is unsustainable,” adding to a growing chorus of warnings about the nation’s fiscal health.
Echoing Smith’s concerns, Jamie Dimon, CEO of JPMorgan Chase, recently cautioned that unchecked government spending could lead to a default, potentially sparking a “rebellion.”
Similarly, billionaire investor Ken Griffin warned against printing more dollars to avert default, predicting it would plunge the financial system into a “deep tailspin.”
The national debt has significantly increased under recent administrations, jumping by more than $6.3 trillion during President Joe Biden’s tenure and $7.8 trillion under President Donald Trump.
He warned that efforts by these nations to dethrone the dollar could prevent the U.S. from selling its bonds, dramatically affecting living standards.
Treasury Secretary Janet Yellen, however, has taken a different stance, arguing against the need for the federal government to balance the budget for fiscal sustainability.
Despite a 16 percent increase in the budget deficit, pushing it to $532 billion in the fiscal year’s first four months, Yellen remains optimistic about President Biden’s deficit-reduction policies.
Annual interest payments on the public debt now exceed $1 trillion as the national debt passed the $34 trillion-mark last month.
Supporting article: Epoch Times The founder of FedEx has added his voice to the chorus of views expressing concern about out-of-control spending in Washington
