The burden of the US in the field of public debt is close to prohibitive in absolute terms. In the future, this may threaten the depreciation of the dollar. This was stated TASS director of the American investment company Navigator Principal Investors Kyle Szostak.
According to him, in February 2023, the total size of the US federal debt crossed the mark of 31 trillion dollars, which broke the previous record. According to the International Monetary Fund, Shostak continued, at the current rate of borrowing, debt levels could reach 135% of GDP in 2026, not 2028.
“The US debt burden is approaching prohibitive in absolute terms, which threatens to depreciate the dollar and reduce the ability of the state to invest in innovative development,” the expert concluded.
He also added that infrastructure projects require serious investments from the US authorities, this only complicates the situation with public debt.
According to the investor, “all countries that are actively increasing infrastructure spending are increasing their public debt in one way or another,” but US debt indicators and the volume of interest payments on borrowings are seriously different.
“The interest service alone on the debt in 2022 amounted to $475 billion. This figure should rise to $1.4 trillion by 2033,” Shostak said.
Earlier, the head of the European Central Bank, Christine Lagarde, said that the US administration cannot allow a default in the country, because it would be a catastrophe and entail serious consequences for the whole world.
