CEO Of JP Morgan: "Crack in the Bond Market Coming"

In major Corporations, a person does not get to be Chief Executive Officer (CEO) for 19 years without being absolutely the sharpest guy.  Jamie Dimon has been the CEO of America's largest Bank, JP Morgan/CHASE for 19 years.

Corporations may have nepotism within their structure, but that can't happen at the top because the guy at the top must answer to the Board of Directors and to the Stockholders.  So when a guy retains his position as CEO of America's largest bank for 19 years, that tells you all you need to know about his skill, his acumen, and his performance.  He's at the pinnacle of corporate leadership.

When a man like Jamie Dimon comes out publicly and warns "there is going to be a crack in the Bond Market" you'd better listen.   And that is precisely what Jamie Dimon told a gathered group of business experts, last week.

“You are going to see a crack in the bond market — OK,” Dimon said, speaking at an event organized by the Ronald Reagan Presidential Foundation. “It is going to happen.”

“And I tell this to my regulators — some of who are in this room — I’m telling you this is going to happen. And you are going to panic.”

Here's video of his exact remarks:

🚨 Jamie Dimon Warns: Bond Market Crack Is Coming, But We’ll Profit Big.

You are going to see a crack in the bond market, it is going to happen

We will not panic when the bond market breaks, we’ll probably make a lot of money. pic.twitter.com/5oGKyPFeoP

— Wall Street Gold (@WSBGold) May 31, 2025

Now, most readers of this site are not financial experts; neither am I.   So like you, I look to real experts, with a demonstrable track record, before I pay any attention to an issue of banking and finance.   By every measure, Jamie Dimon qualifies as an expert and I pay attention when he talks.

What he just said is a catastrophe for all of us.  Here's why:

When the stock market crashes, you get a Recession.   When the Bond Market cracks, you get a DEPRESSION.

Only we are not in the year 1929 anymore.  Things happen a LOT faster and a LOT bigger nowadays. 

Let me explain what a "crack in the Bond Market" is, and then you'll understand exactly what it means when something like this takes place.

A "Crack in the Bond Market" is when Investors lose faith in the ability of GOVERNMENT to pay its debts.

And, sadly, I must report to you, it has already begun.

Two weeks ago, for the first time in Moody's History, that credit ratings agency down-graded the credit rating of the United States by one notch. Other credit ratings agencies did that several years ago, so Moody's doing it now may not seem like a big deal, but it is.

This triggered Credit Default Swaps to get more expensive for "insuring" US Debt.   In fact, US Debt is now viewed with similar risk to Italy and Greece ! ! ! ! ! !  

A few years ago CDS spreads were all over the Greek newspapers and on TV. Today, the sovereign CDS spread is currently trading at levels similar to countries that are rated BBB+, such as Italy and Greece. Chart from Slok, Apollo:

Think about this for a moment.  The United States, with the largest economy on earth, is now being viewed by markets as a credit risk at the level of Greece and Italy.  

Why would Investors want to continue lending us money if it is now as risky as lending to Greece or to Italy?  Well, in short, they won't.   But it gets worse than that.

The United States Dollar is the de facto "Reserve" currency for this planet.  Everyone uses the dollar in International trade because it is so trustworthy and reliable.   How long is that going to last if our credit is now viewed as being so risky?   Well, in short, it won't.   Which is why the Dollar is now depreciating in value against a range of other foreign currencies.

What this translates to is that foreign imports get more expensive for Americans because foreigners aren't so sure about our money being good anymore.

Then, last week, FOUR things happened internationally that are pushing this situation to worsen:

1) The IMF warned France:  It must make "difficult decisions" to restore its finances. It advises against massive tax increases and calls for "significant" reductions in public spending.

2) Japan had a FAILED BOND AUCTION.  Investors did not want to buy Japan's Government Debt - and didn't!

3) Ukraine DEFAULTED on its national debt.

See the writing on the wall for a Bond Market crack?   

Rising government bond yields are a global phenomenon: Japan’s 30-year bond just rose 50 basis points in 30 days and crossed above 3.0% for the first time in history.

At the same time, the 30-year US Treasury yield surged 30 basis points and crossed above 5.0% for the first time since October 2023. This is also the second-highest level since August 2008.

A similar move has been seen in 30-year bond yields in the UK, Germany, Australia, and Canada.

To put this differently, investors across the globe are rushing to sell long-term government bonds in developed markets. Global bond markets are weakening.

The US has its credit downgraded and its currency falling in value.  France was told it must make "difficult decisions" to restore its finances, Japan had a failed Bond Auction, and Ukraine defaulted on its debt.

Let's not even talk about the amount of Gold being hauled OUT of the Bank of England for the past two months.  What does that tell you about England (UK)?

And let's definitely not talk about the Trump visit to Fort Knox to audit the US Gold Reserves.   That fell out of public view awfully quick after Trump suggested he would do exactly that.   

Why did the visit to Fort Knox disappear?  Maybe because the Gold we all thought was there, isn't anymore?

When the Bond Market "Cracks" and Investors lose faith in government paying back its debts, the Investors stop buying that debt.   Without new cash coming in, government is unable to pay its CURRENT operating expenses.  The government needs to borrow money to pay its CURRENT obligations.

If the money stops coming in, the government can't pay.  When that comes . . .

WHAM.  Depression.  

Worldwide.  

Which brings us back to what Jamie Dimon said.  "A crack in the bond market is coming.  I'm telling you it will happen."  

He later said he didn't know if it would come in 6 months or 6 years.  But those qualifiers did not dispel the horror he stated.  

Our system is collapsing.  Government over-spending, to buy votes and support people who refuse to work, has brought all of us to this point. 

Worse, here in the US, under the illegitimate Biden Regime, they brought literally millions of illegal aliens into our nation and put them all on Welfare, Medicaid, and Social Security!  

Government is solely and completely to blame for the crack that's coming.   But they don't want the blame.  So they will take us to war BEFORE the collapse happens, to they can then blame the collapse on the war, instead of on what they, themselves, have done.

Government knows it.  Bankers know it.  But no one is saying this quiet part out loud - except me.

WHAT TO DO?

You and I can't stop what's coming so all we can do is try to prepare for it as best we can.

Think about a "Depression."   Food lines.  Food riots!  Civil unrest.  Empty stores.

You have to start "prepping."  NOW!

You need to have, in your possession:

SHELF-STABLE FOODS: 20lb bags of Rice, Countless boxes of Pasta, Canned soups, canned meats, canned fish, canned vegetables - because canned-anything doesn't need refrigeration and lasts for years.

WATER: An Emergency water supply for drinking and cooking (not for washing yourself).  Cases of Bottled water; a gravity-fed water filter if you have to collect water from a nearby stream.  A water disinfectant kit.

MEDICINES.   Get yourself a hand-written prescription from your Doctor for any medicines you MUST have in order to live.  Take that hand-written prescription to a pharmacy OTHER THAN the one you regularly go to, and tell them you have no insurance, you'll be paying cash.   Get the medicine.  at least a 90 day supply.  This way, when it all goes to hell, YOU still have what YOU need to live. At least for awhile.

A GENERATOR AND/OR SOLAR POWER: If everything goes to hell, there will likely be power outages from utilities that go out of business, or from Civil Unrest that wrecks the electric grid.  you really do need a way to keep your refrigerator running, so all your food doesn't spoil, and maybe keep a light on in the house.

Get a small generator or solar power setup to make your own electricity.

Have a supply of FUEL for that generator. (Don't store fuel indoors, obey local fire code regulations) 

COMMUNICATIONS GEAR: Get yourself a CB radio and antenna, or a HAM radio and antenna, to communicate locally or to tune-in worldwide shortwave broadcasts to keep up to date on what's going on.  Have batteries for both.

FIRST AID KIT: Get yourself an EMT First Aid Kit.  Emphasis on kits with lots of bandages for injuries and wounds.

Now, many of us have little extra money to spare and simply can't afford most of these things.   But a 20lb bag of rice is only about $10.  Cans of CHUNKY Soups are only about $3 each.  Cooking-up some rice and pouring a can of Chunky soup over it, gets you a hot meal for a day.  Get this for each family member.  As many cans as you can.

Get cans of Tuna fish, Chicken breast, vegetables.  

Get boxes of Pasta.   

FOOD FIRST.   Everything else, later.

Get it a little at a time, every week.  

There isn't much time left before they have to take us to war, to deflect blame for what government has done.

Oh, and lest you have any doubt, the "war" will likely be felt here.  Inside the United States.   Missiles hitting us here.

We've never suffered that before.  It is likely we WILL suffer it this year.  

Prep.  Now.  While you still can.

If you do nothing - remember, the government is broke and has no food stored in warehouses to give you.  You will be on your own.

If you've already got "preps" then GET OUT OF DEBT.   Have a "Garage Sale" or a "Basement Stuff" sale, or an "Attic Stuff" sale.  Get rid of all the crap that's been accumulating for years, and use the cash to get out of some debt.

The economy may stop, but the Bill Collectors won't.  They will want that money and will not leave you alone until they get it.   So get rid of the debt NOW, while you still can.

GET RIGHT WITH GOD

It may sound hokey to a lot of you, but trust me, God is real, he made us and everything we see around us, and it really is important to Pray and try to get right with Him.

For a whole slew of us . . . . God is the only chance we have to survive what's coming.  If you pay no attention to Him, why would he pay any attention to you?

Go in your bedroom or your bathroom, close the door, get on your knees and Pray.  

Tell Him, "Hi God, it's me (so and so).  I know I haven't prayed to you in 50 years, but I'm changing that right now.   Then tell him what's been going on.  Tell him you're sorry for the sins you've committed, and ask him to please forgive you.

Oh, and for those fo you who don't believe in God, take a look at the computer you're using to view this website.  Do you think the computer just appeared in existence because the sun, the moon, the stars made it? Was it made from some "big bang?"  Of course not.  You know someone MADE it.

Well, I've got news for you:  Someone made the earth, the sun, the moon, the stars, too.  It all didn't just "happen" in some "big bang."

Embrace the reality.  It's staring you right in the face.

Get right with God.