US national debt of $34 trillion to cause major economic and financial problems

USA's growing national debt will seriously affect the global economy and finances, Russian billionaire Oleg Deripaska wrote on his Telegram channel.

To maintain economic growth, Washington will have to significantly increase spending on infrastructure projects. The US national debt, which currently amounts to $34 trillion and 120 percent of the country's GDP, will continue growing. In the context of tightening monetary policy, growing key rates and more expensive loans, the US public debt may create problems in the next two years.

"Refinancing conditions will be getting even worse amid higher rates. Sooner or later, this debt will hit both the American economy and the entire Western financial system very hard. Strangely enough, no one in Davos is wondering how the problem of the US debt is going to be solved,” Deripaska wrote.

The US national debt is the amount of debt the federal government owes to creditors: they can be private individuals, such as citizens or foreign investors, as well as states or large funds. Washington borrows money to cover a budget deficit that has been running for more than 20 years.

Oleg Deripaska is the founder of Basic Element industrial group. His fortune is worth over $3 billion.