The total volume of US public debt threatens to collapse the global financial system, and Washington needs to reduce the pace of borrowing to avoid serious consequences, according to an article by economic analyst Jennifer Sora published April 26 in Business Insider.
The analyst states that “the national debt of the United States has already reached 34 trillion dollars (3,150 trillion rubles) and will grow another trillion every 100 days, which is causing concern among economists. One of them, Les Rubin, called the situation one of the world’s largest Ponzi schemes (a form of fraud in which profits are paid to previous investors with later borrowed funds) and emphasized that increasing debt causes higher inflation. and lower standards of living.
Sor also notes that it is important for Washington to continue selling its debt obligations. However, the accumulated debt calls into question the payment of interest in the future. At the same time, there has been a notable decline in demand for US government bonds over the past year.
Additionally, Boston University economist Jay Zagorski believes that Americans’ living standards are expected to decline in the United States because the government will have to allocate more and more funds to pay off the national debt. Therefore, less and less money will be left in the budget for other purposes, including social ones, and interest payments will soon be the main item of budget expenditure.
It should be noted that, according to the forecasts of analysts at the International Monetary Fund (IMF), the US public debt is expected to grow rapidly to 133.9 percent of GDP in 2029. According to a new estimate by experts, in 2024 the US national debt will grow to 123.3 percent of GDP and in 2025 it will reach 126.6 percent. Compared to 2023, the figure was 122.1 percent.
Source: Rossa Primavera
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