Jon Case Just Issued This Dire Warning About The US

As we near the end of what has been a very difficult 2020, Jon Case just issued this warning warning about the US.

November 7 (King World News) – Jon Case at CI Global Asset Management, which has $189 billion in total assets:“The debt we are laying on now in the US, not only is it a layer of bricks in the boat as far as the debt that needs to get repaid, but it’s also lowering the ultimate GDP level, right? Because it’s stealing from the future. Back in the 1980s, $1 of debt used to create about 60 cents of GDP output. Today it’s only 24 cents (for every dollar printed). So you’re seeing a lessening of the impact that debt has (on the economy). You’re getting less and less fire in terms of a dollar of debt on GDP. This is a structural problem. So more and more debt, it’s not really helping. We get short-term burst of activity, but the long-term prospects go lower and lower.

We know we are spending a lot of money fiscally in the US. I think that could create maybe one to two years of a burst in output, but ultimately this is a load of bricks in the boat that’s getting higher and higher. And when you grow debt faster and your economic growth lowers, Debt/GDP rises. And the economic treadmill you are on gets faster and faster until someone gets thrown off the back, which is back to that systemic risk hedge where people are layering on more and more insurance in the form of gold against what is happening.”

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