Rising public debtUSAthreatens the collapse of the global financial system. According to columnistBusiness InsiderJennifer Sohr,Washingtonneeds to slow down the pace of borrowing to avoid serious consequences.

She noted that the US national debt has already reached $34 trillion and will grow by another trillion every 100 days, which raises concerns among economists. One of them, Les Rubin, called the situation one of the world's greatest Ponzi schemes (a form of fraud in which profits are paid to earlier investors out of funds borrowed later) and emphasized that increasing debt provokes higher inflation and lower living standards.

He explained that it is important for Washington to continue selling its debt securities, but the current debt calls into question the ability to pay interest on it in the future. At the same time, last year there was a noticeable decline in demand for US government bonds. Boston University economist Jay Zagorski added that government debt provides a boost to the economy by accelerating hiring and wage growth. Full employment in the economy leads, in turn, to accelerated inflation, he added.

The expert also expects a decline in the standard of living of Americans. When the government has to allocate more and more funds to pay interest on the national debt, there will be less and less money left for other purposes, including social ones. Interest payments will soon become the main item of budget expenditure, Zagorski concluded.

AnalystsInternational Monetary Fund(IMF) previouslypredicteda rapid increase in US government debt to 133.9 percent of GDP by 2029. According to updated expert estimates, in 2024 the size of the US national debt will increase to 123.3 percent of GDP, and in 2025 it will reach 126.6 percent. For comparison, in 2023 the figure was 122.1 percent.

Source: Lenta.ru