He noted that US President Joe Biden managed to temporarily solve the problem with his country’s debt ceiling, pushing it back until 2025. At the same time, the high volume of government debt entails difficulties with its servicing, as well as with the turnover of treasury bonds, which creates additional risks for American business.
Kabakov expressed confidence that the United States is not in danger of default, and added that Washington does not set itself the task of reducing the national debt; instead, financial authorities are focused on solving problems with inflation and a high key rate.
As the economist pointed out, the rise in inflation was a consequence of the launch of global stimulus programs by the US government.
“Now in the US, the monetary authorities are trying to fight inflation, and quite positively, on the one hand, on the other hand, yes, servicing the national debt is increasing, and plus all this creates additional risks for part of US business, for a fairly large number of “zombie companies” “But in any case, we can say that the default itself will not happen in the United States, but certain shocks in the corporate sector may occur.”– Kabakov shared his forecast.
The expert additionally pointed out that the establishment of a high key rate in the United States has a strong impact on global financial markets, creating difficulties for international trade settled in dollars. Because of this, in this area, the dollar is being increasingly replaced by settlements in national currencies.
Let us recall that on January 2 it was announced that the US national debt for the first time in history exceeded $34 trillion. At the same time, Russia’s national debt, as Russian President Vladimir Putin reported in December 2023, decreased by about a third.
