Kenneth Rogoff, former chief economist of the IMF, has sounded a warning bell: the U.S. could tumble into an inflationary crisis driven by its record debt levels within the next decade.
According to Rogoff, a mix of record debt levels and political gridlock has paved the way for a looming fiscal storm. "Excessive spending without resolving underlying issues could lead to recurring financial struggles," he says.
In this scenario, shaken market confidence would push interest rates higher, which in turn swells borrowing costs and fast-tracks debt growth – a vicious cycle that fuels deeper inflation.
For tech entrepreneurs, investors, and digital nomads, stable interest rates and predictable borrowing conditions are essential for planning and growth. Startups depend on affordable credit to innovate, while digital nomads and travelers budget their lifestyles around current inflation rates.
Rogoff's message is clear: bridging partisan divides and embracing transparent, sustainable fiscal policies are critical to keeping future inflation in check. The next generation of leaders and changemakers must push for solutions that safeguard both domestic prosperity and global financial stability.
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Economist warns U.S. may face inflation crisis triggered by debt
cgtn.com
