US lacks clear safeguards for economy due to rising debt ceiling

Head of the Economic Research Centre at the Moscow-based Institute of Globalisation and Social Movements Vasily Koltashov has said the increase of the national debt ceiling in the US can't guarantee the rescue of the country's economy from disastrous consequences.

"Undoubtedly, an increase in government debt in the United States is the only means that the American elite can now offer at least to curb the destructive processes. And in some areas even to improve the situation," Gazeta.Ru quotes Koltashov as saying.

According to him, with another increase in the debt ceiling in the US the principle of "addiction" will continue to operate, which is destroying the economy of the United States.

For example, against the background of the banking crisis, commercial real estate investments already collapsed by 50 per cent in 2023.

He added that real estate prices in the country will now continue to fall, which is already a sad sign for the US economy. All of this points to a degradation and "deep sickness" in economic processes.