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2024-01-31 Government Corruption
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Author of the book 'Black Swan' warned of a 'death spiral' of the US national debt
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Direct Translation via Google Translate. Edited.
[Regnum] The budget deficit and rising national debt could lead the United States to a “death spiral,” said economist and trader, author of the best-selling book “Black Swan” Nassim Taleb, quoted by Bloomberg.
In his opinion, the shortage of money in the federal treasury is growing at such a rate that it will take a miracle to reverse the damage.
“As long as Congress continues to expand the debt limit because it is afraid of the consequences of doing the right thing—that is the structure of the political system—eventually a debt spiral will form. And a debt spiral is like a death spiral,” Taleb explained.
| President Trump offered a budget to start fixing that in 2017. But Congressional Republicans were not interested, so he gave up. Hopefully the next lot will be more enthusiastic. |
He also noted that the current situation forces a “somewhat gloomy” attitude towards the political system of the Western world. Due to globalization, the economist added, the world has become much more interdependent and problems in the economy of one region can ricochet around the world.
As Regnum reported, earlier the head of the American bank JPMorgan James Dimon said that the impressive national debt had pushed the US economy to the “cliff edge.” The banker agreed with the opinion of former Speaker of the House of Representatives Paul Ryan, who called the national debt an increasing snowball with the most predictable crisis in US history.
In January, the US Treasury reported that the national debt exceeded $34 trillion, increasing by $4 trillion during 2023. The White House has repeatedly called on Congress in 2023 to increase the debt limit.
US Treasury Secretary Janet Yellen noted that such an increase in public debt is frightening. At the same time, she noted that the country’s economy is huge in scale, and the US foreign debt is supposedly quite manageable.
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Posted by badanov 2024-01-31 00:00||
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Posted by MikeKozlowski 2024-01-31 08:00||
2024-01-31 08:00||
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Posted by Besoeker 2024-01-31 08:07||
2024-01-31 08:07||
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