Warning Signs: Renowned Scholar Attali Sounds Alarm – ‘US Economy is Bankrupt, Debt Crisis Looms

Jacques Attali, a world-renowned French scholar, claimed that America’s public debt is at its highest level since World War II and that “America is bankrupt.”

Attali attended the Future Investment Initiative (FII) held in Riyadh, the capital of Saudi Arabia, as an interlocutor on the 30th local time, and diagnosed, “If growth weakens, the U.S. national debt and dollar situation will worsen,” and “a major disaster could occur.”

He went on to say that it was thanks to growth that the United States lowered its debt, which had been 116% of GDP since 1945, to 20%, and declared, “No matter how much the economy grows now, it cannot absorb its debt of 125%, and this is impossible.” .

According to data released by the U.S. Treasury, the ratio of federal government debt to GDP in the United States decreased from 96% in 1948 to 32% in 1974, then began to increase, reaching 124% as of 2024.

Attali pointed out that former President Donald Trump, the Republican candidate, pledged ‘universal tariffs’ in the US presidential election, which is a week away, and analyzed, “This is why China prefers Trump.”

This statement is interpreted to mean that if the U.S. administration pursues a policy of strengthening tariffs, U.S. trade will decrease, which will reduce the engine of economic growth, which could be a reflection of China’s competition for global economic hegemony.

He said that historically there were only four ways to get out of debt: growth, taxation, inflation and war. “The only safe way is growth.”

Attali said raising the national debt limit by the U.S. federal government following the inauguration of a new president early next year may seem like a solution, but he was concerned that “weakening growth would lead to a major disaster.”

He went on to warn, “No matter who becomes the new U.S. president, the world will face the fact that the country with the world’s strongest economy and currency is bankrupt.”

Attali, a French economist, is a world-renowned scholar who has written dozens of books, including ‘A Better Future’ and ‘Waves of the Future’.

YTN Lee Kyung-ah (kalee@ytn.co.kr)

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