The anti-crypto CEO of the somehow pro-crypto JPMorgan just basically admitted that he knows our current global financial system is inevitably going to lead to a wide recession.
It’s weird because as he did that, he also actively remains a savage critic of Bitcoin, the one thing that actually can save the global economy. Well aside from gold anyway.
Earlier today, in JPMorgan’s third-quarter earnings report, Dimon laid out his worries in plain sight. He said:
“We’ve been closely monitoring the geopolitical situation for some time, and recent events show that conditions are treacherous and getting worse.”
Mounting global tensions
Translation? Things are about to hit the fan. He sees the chaos coming from all directions—Russia and Ukraine, the Middle East lighting up with war, and US-China tensions that refuse to end.
Dimon’s sounding the alarm on what he calls the ‘unraveling’ of the world order, which has been around since World War II.
And let’s not forget his casual mention of ‘nuclear blackmail’ from Iran, North Korea, and Russia. He says the current global crisis “dwarfs any I’ve had since I’ve been working.”
And if that’s not bad enough, he’s pinning his hopes on American leadership and Western allies to pull something together.
It’s not exactly comforting when you look at Washington’s embarrassing geopolitical performance over the past decade at least.
The Middle East is an absolute disaster right now. The Israel-Hamas conflict just hit the one-year mark, and it’s nowhere close to being over. Tens of thousands of people have died, and now Hezbollah and Iran are involved.
Just this past Thursday, Israeli airstrikes killed at least 22 people in Beirut, while Iran launched over 180 missiles at Israel.
Dimon worries that any retaliation could take out Iranian oil facilities, which would send the already shaky global economy into a tailspin.
Meanwhile, over in Ukraine, Russia just decided to boost its defense budget by 25% for 2024. Analysts say that’s a clear signal that Russia isn’t stepping back.
The war’s going to drag on, and Europe’s already fragile economy is going to feel the pain.
Dimon’s crypto problem
But Dimon’s got a massive grudge against Bitcoin. While JPMorgan is deep into blockchain (processing over $1 trillion in transactions through its Onyx platform), the CEO thinks cryptocurrencies like Bitcoin are a joke. One time last year, he was like:
“We’ve been talking about blockchain for 12 years; not much has happened—it ain’t like AI.”
It’s not just about the tech though. Dimon genuinely believes Bitcoin and other crypto are dangerous. He’s worried about them being used for illegal activities like money laundering and fraud.
He said it repeatedly, and at this point, it’s pretty obvious that he just dislikes crypto. And don’t get him started on Bitcoin’s value. He’s called it a “pet rock,” which tells you exactly how little respect he has for it.
At the 2021 Davos conference, Dimon went even further, calling Bitcoin a “hyped-up fraud.” He’s not impressed by Wall Street’s involvement either.
JPMorgan’s third-quarter results show $42.7 billion in revenue, a 7% bump from last year. But things aren’t perfect, for you see net income in the consumer banking division took a hit, thanks to lower deposit balances.
With JPMorgan dabbling into blockchain and digital assets, it remains uncertain whether Dimon will ever give crypto a chance. Bitcoin is inevitable regardless.
