Recent warning by Larry Fink, CEO of BlackRock, about the critical situation regarding US federal debt has drawn attention to potential consequences of its growth.
Federal Debt and Its Growth
The US federal debt has surpassed 36 trillion dollars, having increased more than fourfold over the past 25 years. This situation poses systemic risks, and with chronic deficits and political inertia, the likelihood of hitting a critical point becomes more real.
Ongoing Reforms and Possible Solutions
Larry Fink identifies three key areas for changing the current situation: reviving private investment, simplifying the permitting process for significant infrastructure projects, and forming a strategic industrial policy. He notes that economic growth below 3% makes debt servicing unmanageable, especially with new tax reforms potentially adding up to 2.4 trillion dollars.
New Ideas for Financial Stabilization
Some experts, including entrepreneur Michael Saylor, propose considering using Bitcoin as a strategic asset to strengthen the US budget in the long term. This idea, while still under discussion, reflects a possible shift in approach to crypto-assets, viewed now not as threats but as economic levers.
The current situation regarding debt and upcoming reforms requires searching for new solutions and approaches for sustainable economic growth and financial system stabilization.
