Volodin called the US national debt a global financial pyramid

The US national debt is a global financial pyramid that creates great risks for the economies of other countries, declared State Duma Chairman Vyacheslav Volodin in his Telegram channel.

“All financial pyramids, as history shows, sooner or later end in failure. But here the situation is different. The US national debt is a global financial pyramid built by Washington to deceive other peoples and countries,” he wrote.

Since the Second World War, the United States, according to Volodin, has already raised the ceiling of its national debt over a hundred times and began to live “at the expense of other states.” At the same time, Washington’s ability to independently service its debt is decreasing, which is why the dollar becomes toxic and many countries have begun to switch to settlements in national currencies, the State Duma speaker said.

“It is right for states dependent on the dollar to look for an alternative to it already today, thereby reducing the risks for their citizens,” he concluded.

Reuters today reportedthat US President Joe Biden and Republican Speaker Kevin McCarthy are close to reaching an agreement to raise the national debt ceiling to $31.4 trillion. The planned transaction also involves the simultaneous limitation of costs for most items of expenditure.

The House of Representatives at the end of April approved a bill to raise the national debt limit with a significant tightening of budgetary policy, but the Democrats, who have a majority in the Senate, and Biden himself did not support it.

On May 10, Biden said that the crisis in the country was formed because of the Republicans, since the United States can pay its public debt. At the same time, the president agreed with Senate Minority Leader Mitch McConnell that the US would not default. McConnell also urged the US president to make a deal with McCarthy.

How wrote Earlier, Vedomosti, interest spending on the US government debt at the end of April amounted to $460.26 billion, or 12.75% of all federal budget spending. This corresponds to about 1.7% of US GDP. The share of interest-bearing spending in the expenditure side of the budget has been growing dynamically since the start of the pandemic. At the end of fiscal year 2020, they amounted to $522.77 billion, or 7.99% of all budget expenditures, after which they increased to $562.39 billion (8.24%) in 2021 and $718.75 billion (11.46% ) in 2022