Russian Billionaire Deripaska Predicts Quasi-Default In US Due To Federal Debt Increase

MOSCOW (Pakistan Point News / Sputnik - 22nd April, 2021) If the US continues to increase its foreign borrowing to fund expensive national programs, it will be at risk of entering a quasi-default, Russian billionaire Oleg Deripaska stated on Thursday.

The prediction comes following the announcement that the White House is planning another massive spending proposal to cover childcare, family care and education. The so-called American Families Plan, proposed by US President Joe Biden, is estimated at $1 trillion.

"Another package of measures to stimulate the US economy is on the way. The cost of the package this time is over $1 trillion. Where Biden is going to get that much money is unclear. It would be great if it were from the budgets of the State Department's political adventurers or the hawks from the Pentagon, but it does not look like it. They feel quite comfortable under the new administration," Deripaska wrote on Telegram.

According to the billionaire, the US will increase its foreign borrowing to cover the costs of the programs.

"Apparently, they are planning to borrow from the whole world again. The US national debt is already confidently heading toward $30 trillion! And no one is going to reduce it. This can end quite badly for the US, even leading to a quasi-default," he added.

The US Federal debt hit an all-time high in March, topping $28 trillion, and continues to grow as the government increases its borrowing to fight the pandemic and its effects on the economy. In March, Biden signed the first $1.9 trillion COVID-19 relief package.