July 13, 2024

FedEx Founder Fred Smith Sounds Alarm on America’s Debt Crisis

Image Credits: Anna Moneymaker/Bloomberg via Getty Images

In a world where financial stability often feels like a delicate balancing act, voices of reason are becoming increasingly vital. One such voice echoing loudly in the corridors of power is that of Fred Smith, the visionary founder and executive chairman of FedEx. In a recent interview with FOX News, Smith didn’t mince his words when addressing America’s staggering national debt, labeling it as “unsustainable.”

Host Bret Baier probed Smith on his views regarding the burgeoning federal debt, which has now soared past an eye-watering $34 trillion mark. With an astute observation, Baier noted that the debt held by the public has ballooned to 97% of GDP, a figure projected to skyrocket to 195% by 2050. “Eventually, you have to turn the aircraft carrier a little bit,” Baier aptly remarked.

Smith, echoing the concerns of many economic luminaries, emphasized the gravity of the situation. “The chairman of the Federal Reserve said it Sunday evening,” Smith noted, “The head of our largest bank, I believe, JP Morgan, Jamie Dimon, has said it repeatedly, and hopefully I’m adding to the chorus and saying this is unsustainable.”

During a speech at the Calvin Coolidge Presidential Foundation in December, Smith had issued a clarion call for political leaders to recognize the imminent dangers posed by fiscal instability. However, when Baier inquired about the emergence of such leaders, Smith’s response was sobering. “No, quite the contrary,” he lamented, “The political process is really focused on the extremes of both parties.”

Smith’s concerns extended beyond mere fiscal matters. He highlighted the significance of trade, a cornerstone of America’s rise to greatness since the days of President Roosevelt. “No one is supporting trade,” Smith emphasized, “which made America great, really, since Roosevelt and his secretary of State Hull passed the first major trading bill in 1934.”

Drawing attention to geopolitical shifts, Smith warned of the BRICs alliance’s deliberate efforts to undermine the dollar’s status as the reserve currency. “If that happens and we can’t sell our bonds,” he cautioned, “I can assure you the living standards that we all enjoy today are going to be a thing of the past.”

In a world teetering on the brink of economic upheaval, Fred Smith’s clarion call for fiscal prudence and political foresight serves as a beacon of wisdom. As the storm clouds gather on the horizon, it’s imperative that we heed the warnings and chart a course toward financial stability and prosperity. The time for action is now.

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