World economy on brink as top banker sends dire warning over interest rate hike<\/strong>
Wall Street crash is here with stock markets \u2018on the edge\u2019. UK could be next<\/strong><\/p>\n
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Andrew Sanders, Senior Lecturer in Politics and International Relations, De Montfort University, told Daily Express US: “The debt, as seen as a percentage of GDP, remains over 100 percent but it has dipped slightly since it was 134.8 percent back in 2020.<\/p>\n
“Where to make spending cuts is a big problem as the largest chunk of federal debt, and the largest part of government spending is social security.<\/p>\n
“Harder pushes to block the raising of the debt ceiling from within the House of Representatives might yet cause the US to default on its debt, which would have enormous, international, ramifications.”<\/p>\n
The expert also warned the spiraling national debt is something Republican voters in particular are keeping a close eye on in the months leading up to the presidential election in 2024.<\/p>\n
DON’T MISS: <\/strong> We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n That could prove to be a huge problem for Joe Biden, who is already trailing bitter rival Donald Trump in several polls as he battles for a second White House term.<\/p>\n Mr Sanders warned: “The federal debt is such a large figure that no ordinary US citizen can really comprehend that amount of money and on a day-to-day level it really doesn’t impact a lot of people in any way.<\/p>\n “It does, however, poll as something that people really care about – well over half of people in recent polls cite the importance of reducing the budget deficit as a key priority.<\/p>\n “It being a stronger issue among Republicans, both because Republican voters typically value conservative economic policies more highly and because the Republicans are framing this as an issue that is being caused by Biden.”<\/p>\n Earlier this month, Treasury Secretary Janet Yellen insisted she was comfortable with the nation’s fiscal course because interest costs remain manageable.<\/p>\n She said in an interview with CNBC: “The president has proposed a series of measures that would reduce our deficits over time while investing in the economy, and this is something we need to do going forward.”<\/p>\n But Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said in a statement on the same day: “As lawmakers drift from one short-term fiscal crisis to the next, our national debt just keeps piling up, trillion after trillion.<\/p>\n “After the debt ceiling showdown in June, we crossed the $32 trillion debt milestone. Now, as we stare down a potential government shutdown just three months later, we have raced past $33 trillion in red ink.”<\/p>\n
World economy fears as US warned it’s barrelling towards ‘devastating’ crash[ECONOMY] <\/strong>
China is ‘ticking time bomb’ as economic crisis threatens to destabilise Xi[CHINA] <\/strong><\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/78\/590x\/secondary\/us-economy-joe-biden-4985231.jpg?r=1695990894962\")
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