[Regnum] The US national debt has reached a critical point of $35 trillion, making it virtually impossible to continue borrowing. This was stated by Federal Reserve Chairman Jerome Powell at the European Central Bank forum in Sintra.
"The path we are taking is unacceptable, there is no doubt about that. We need to do something, and it is better to do it sooner than later," Gazeta.Ru quoted him as saying.
It is noted that experts are confident that the US has no alternative ways to cover budget expenditures and deficits, so the national debt will continue to grow.
Earlier, analysts William Ruger and Thomas Savage suggested in an article for the American magazine The National Interest that an increase in budget expenditures and government debt could lead to serious problems in the US economy, which would directly affect the country's defense capability.
As Yuri Tverdokhleb, Associate Professor of the Faculty of Finance and Banking at RANEPA, noted to a Regnum correspondent, the world has reached a stalemate with the US national debt. According to the expert, Joe Biden's rule has led to the debt reaching an unprecedented level and continuing to grow against the backdrop of a recession and deterioration of all other macroeconomic indicators. Biden and his entourage, on the contrary, propose increasing the tax burden, he explained.
According to him, the sanctions pressure that the US is exerting on countries that are not to their liking, such as Russia, China and others, is pushing these countries to decide to return to the initial position. Then the US will really collapse. And Washington understands this, which is why they are pursuing such an aggressive policy and trying to distract public attention from these problems. The dependence of the Russian economy on the dollar is decreasing, and it is decreasing qualitatively and in large volumes, the economist emphasized.
Russian President Vladimir Putin said on June 7 that the American economy is not backed by anything, and that the United States conditionally owes the world economy $54.3 trillion. The head of state said that the Bretton Woods system, which was based on the gold equivalent, had long since died.
At the beginning of the year, the US Congressional Budget Office published a report according to which by the end of 2034, the US national debt is expected to grow continuously and reach a historical anti-record. It is specified that by the end of 2024, the US national debt will amount to 99% of GDP, and by the end of 2034, it will reach 116% of GDP. This will be the highest level ever recorded.
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