The growing concern about the record level of US government debt is drawing attention from prominent figures in finance, including JPMorgan CEO Jamie Dimon and hedge fund founder Ray Dalio. Both have expressed worries about the consequences of America's significant debt burden.

Dimon emphasized the importance of addressing the budget deficit sooner rather than later to avoid potential problems in the financial markets. He highlighted the risk of the market forcing action on the debt issue, which could lead to uncomfortable adjustments.

Meanwhile, Dalio voiced concerns about the weakening demand for US Treasuries, particularly from international investors who are apprehensive about the US debt situation and potential sanctions. Diminishing demand for Treasuries could result in higher yields, leading to increased borrowing costs across the US economy.

The comments from Dimon and Dalio underscore broader worries about the risks associated with the substantial US government debt, which currently stands at $34.6 trillion, exceeding the size of the US economy.

While Dimon acknowledged that government spending, including pandemic relief efforts, has contributed to economic growth, he cautioned against excessive reliance on debt-driven growth, emphasizing the need to address fiscal deficit issues.

The IMF and the Congressional Budget Office have also raised alarms about the high level of US government debt, warning that it could elevate borrowing costs globally and threaten financial stability. Rising debt-servicing costs have further strained government finances, reducing funding available for essential public services.

The situation is not unique to the United States, as government debt levels have surged globally, including in eurozone countries. The European Central Bank has cautioned that elevated debt levels could leave governments more vulnerable to economic shocks, such as increasing geopolitical tensions requiring additional defense spending.