With a temporary victory in hand after getting a tenuous ceasefire in place in Gaza, Donald Trump returned to the U.S., where the government is shut down, the shadow of the Jeffrey Epstein files hovers over him — and now Wall Street investors are being told by a key financial analyst that the U.S. is going broke.

According to a report from Fortune’s Eleanor Pringle, JPMorgan Asset Management’s chief global strategist David Kelly warned this week that financial ruin is on the horizon.

In his note to investors, he pointed out that efforts to roll back government spending by billionaire Elon Musk’s Department of Government Efficiency was a flop, the White House’s "One Big Beautiful Bill" act is slated to add trillions to the national debt, and the tariff money President Donald Trump is counting on is “shaky” at best.

Fortune is reporting, “America’s national debt is spiraling higher by the second. At the time of writing it sits at over $37.8 trillion, and there are $1.2 trillion in interest payments to service the borrowing. JPMorgan CEO Jamie Dimon and Fed chairman Jerome Powell have both expressed concerns about it.”

According to Kelly, the collapse is not imminent, but is “unfolding” at an inexorable pace.

"The question I am asked most frequently by investors and financial advisors is, when is the federal debt going to blow up in all of our faces? My usual answer is that, while we are going broke, we are going broke slowly. Global bond markets are very well aware of the trajectory of U.S. debt. The fact that even today, the U.S. government can borrow money for 30 years at a yield of just 4.6% speaks to a conviction that there remains room for the government to borrow more,” he wrote before adding a skeptical note about anticipated tariff income.

Noting the Supreme Court could kill Trump's erratic tariff demands, Kelly warned, “This would, at a minimum, force the administration to go back to the drawing board to impose replacement tariffs under some other authority or by sending a bill through Congress. Moreover, it could force substantial refunds of tariffs already paid in recent months.”

Kelly suggested JPMorgan clients need to act now.

“There is a danger that political choices lead to a faster deterioration in the federal finances, leading to a backup in long-term interest rates and a lower dollar. Based on current allocations and valuations alone, many investors should likely consider diversifying their portfolios by adding alternative assets and international stocks,” he wrote before cautioning, “The risk that we move from going broke slowly to going broke quickly adds an important reason to make this move today.”