US officials could detonate a “ticking time bomb” in the form of public debt as reckless government spending leads to record growth. In this respect writer Edition of the People’s Daily.
The publication noted that the risk of default on the U.S. debt has increased recently, and that the debate between the Democratic and Republican parties over the cap on the national debt has not stopped. As a result, public debt became a “ticking bomb”.
Bian Yongzu, a scientist at Yale University in the United States, said this was due to several reasons. In particular, over-funding devastated the country’s real economy and the country’s budget revenues began to decline. Also, with the growth of emerging economies, the global influence of the United States has diminished and global income has been redistributed to Asia and other regions.
Analysts thought that in the short term, the US could raise the debt ceiling again to avoid a possible default. However, this will only lead to a situation where a continuous upward trend is formed at the upper limit. But the recessionary global economy needs stability and certainty. Therefore, if American officials remember their sense of responsibility, they can try to save the world from crisis.
February 11 Bloomberg quotes Pictet Asset Management fund manager Steve Donze reportedThat the US stock market could gain additional momentum in the form of rising share prices of American companies as US authorities struggle to raise the public debt ceiling. This can be facilitated by the policy of local Ministry of Finance (MoF) representatives.