Attempts by the US authorities to prevent defaults on US government debt payments will likely not have significant consequences. On the contrary, the absence of a final decision on the future fate of public debt could become dangerous for the global economy, as it would only lead to an increase in the volume of debt obligations. opens words of the candidate of economic sciences Vladimir Grigoriev “Lenta.ru”.
“The world economy is in danger of avoiding a default in the United States. The situation will only get worse because this vicious pattern of debt accumulation continues. This is the non-refundable amount. In the future, this will occur again. That’s for sure, ”said Grigoriev.
According to him, it is now difficult to determine the exact time when US authorities can declare default on payments related to debt obligations. This is because the US economy is still the largest in the world and the dollar retains its status as the global reserve currency.
May 28 Bloomberg reportedThat the fiscal policy of the US authorities (strategy in the field of public expenditures and taxes) has seriously lost track on the background of the postponement of negotiations on the future fate of public debt. Despite relatively low unemployment rates and a gradual recovery in business activity, government spending continues to exceed income levels.