Russian government agency Roscongress just issued a report for the new year, “Key Events—2024. Geoeconomics. Forecasts. Major Risks,” which says that the $34 trillion U.S. government debt, aggravated further by the increasing budget deficit, presents the biggest threat to the global economy this year. While it is not really a surprise, putting the subject center-stage is a clear marker as to what Moscow is thinking.
The report claims, according to RT’s coverage, that Washington’s $34 trillion debt is mathematically impossible to pay off. The agency based its estimate on the current ratio between the size of the debt, the rate at which it is growing, and budget revenues. “The excessive debt was accumulated at low (interest) rates but needs to be refinanced at high rates that limit economic activity and reduce cash flow. In the medium term, the servicing of U.S. debt will cost $1 trillion a year.” It adds that restarting the printing press is no option, as it would only lead to higher inflation.
The Roscongress Foundation was established in 2007 and, by RT’s account, is a key organizer of nationwide and international congresses and exhibitions with an economic and social focus. Roscongress, for example, was the host of St. Petersburg’s very successful Russia-Africa Forum last July, and annually hosts the St. Petersburg International Economic Forum.