1 Feb 2024

The US is facing a "death spiral" as a result of its mounting debt and the inability of politicians to confront the issue, according to "The Black Swan" author Nassim Taleb.

Per Bloomberg, the Universa Investments advisor who correctly called the 2008 financial crash cast a dire warning about the US debt situation, which has seen the federal debt balance notch $34 trillion for the first time ever to start the year. As long as Congress keeps up its rapid pace of spending, those debts are going to continue to pile up, which could have disastrous consequences for the US economy, Taleb said this week at an event held by Universa Investments. In fact, rising debt in the US is a "white swan," Taleb said, and is an event that poses an obvious risk to markets versus a "black swan" event, which can occur without much warning. That death spiral would necessitate "something to come in from the outside, or maybe some kind of miracle," Taleb said, when asked how the shock would play out, adding that the situation has made him more pessimistic about the political system in the West. Source: Business Insider


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