Expert: US increasingly turning into global financial pyramid

The 46th President of the United States, Joseph Biden, delivered a State of the Union address to Congress. The United States is entering a default period, with high inflation and public debt reaching an astronomical $31.4 trillion. To pay bills, the Head of the White House proposes to turn on the printing press at high speed. Meanwhile, political analyst Aleksei Avdonin told sb.by whether the congressmen would agree this measure.

“Definitely, there is no other option. The US Congress and Senate, despite the confrontation within the establishment, will decide to increase the national debt ceiling. The danger is that its next increase (the last one was in 2021) will lead to an even greater increase in the debt burden on the United States economy (it is now 133 percent of GDP). At the same time, the forecast for the growth of the American economy this year is 0.4 percent. In short, the loss of confidence in US debt will only grow.”

For thirty years, the United States effectively forced large investment banks to buy up their government bonds, reducing external debt: previous borrowings were covered by new ones. Such a system worked only when the United States planted crises and points of instability in other countries of the world. In turn, the US could not act as a reliable investment application and guarantee profitability. This model is failing today. Everyone understands that this is nothing but a global campaign of the new MMM. Now confidence is caused by more stable sources of safety of income and assets: monetary gold. High demand for it will continue in 2023.”