BRICS: US Risks Fiscal Crisis as Borrowing Soars, Warns IMF Economist

The escalating national debt in the United States is drawing increasing concern from global financial experts. Olivier Blanchard, Former Chief Economist of the International Monetary Fund (IMF), is sounding a warning about the potential for a severe fiscal crisis in the US. He highlights that runaway US debt levels at risks to global stability.

According to Blanchard, a senior fellow at the Peterson Institute, the US is in danger of a fiscal crisis erupting after a ballooning in deficits in recent years. This comes as spiking Treasury yields are associated with exchange rate volatility, further exacerbating the situation.

The former International Monetary Fund (IMF) Chief Economist Olivier Blanchard warns that the US could face a serious fiscal crisis as the debt deficit is reaching unsustainable levels. The IMF has also issued reports detailing these concerns, suggesting that unchecked borrowing poses a significant threat.