Expert predicts zero dollar accounts in the world due to growing US government debt

The growth of the U.S. government debt threatens a serious crisis, which will be primarily concentrated in Western countries. It can lead to the zeroing of dollar accounts around the world. This was reported to "Izvestia" on November 26 by Maxim Chirkov, associate professor of the Department of Economic Policy and Economic Measurements of GUU.

Earlier in the day, the Chinese newspaper Global Times expressed the opinion that the growth of the U.S. government debt threatens to become a problem for the world economy. The publication noted that the increase from $35 trillion to $36 trillion took only three months. The increase "risks undermining confidence in US Treasury bonds, which could lead to higher yields and increased volatility in global financial markets," the newspaper specified.

"Indeed, the problems in the US economy and the country's financial system are very seriously growing. This threatens a serious crisis, which will be primarily concentrated in Western countries. It is not clear how the Americans will get out of this problem, because interest rates are rising, and debt payments will grow for a long time, because their debts will be revalued gradually at the new current interest rates. This process is long enough," Chirkov explained.

According to the economist, the development of events can be divided into two scenarios. In the first there will be a serious devaluation of the dollar, in the second - default on public debt, that is, non-payment on bonds, which threatens to zero dollar accounts around the world for banks, companies, individuals.

"The crisis could be quite serious. Despite the fact that it will be more concentrated in the United States, it will hit the global economy hard enough," the expert confirmed.

He recalled that a year ago there was a significant event. Then payments on the national debt exceeded the entire U.S. defense budget.

"The increase in interest payments on the state debt will lead to new borrowing, it will all increase the state debt in geometric progression," concluded Chirkov.

Back in June, specialists of the International Monetary Fund (IMF) called the growth of the U.S. national debt a threat to the world economy. Thus, by 2032, the country's national debt may exceed 140% of GDP. The IMF urged U.S. politicians to carefully consider the issue of increasing indirect taxes and gradual increase in income tax.

At the same time, on November 5 this year, US President-elect Donald Trump said that he would order to pay the state debt with cryptocurrency. He noted that cryptocurrency has a "great future".