Moscow: One of Russia's wealthiest mena has issued a warning that global overreach has put the American economy in a very difficult position right now. On Friday, tycoon Oleg Deripaska posted the remarks on his Telegram channel. He thinks the country's massive public debt and extravagant spending are too much for the underlying economy to bear.
The billionaire, who was sanctioned by the US last year, claimed that "reckless militarization, sanctions against everyone, and military adventures around the world have already cost this country almost $33 trillion."
He did not, however, explain how he arrived at this figure. Deripaska observed that the US had never been so close to experiencing a public financial collapse.
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"Printing more money serves no purpose. As a result, they will hold private discussions in Congress about how to raise the debt ceiling, he said. He predicted that many heads would roll in Washington this spring, paving the way for peace in 2025.
The founder of Rusal, the second-largest aluminium producer in the world, claims that Washington also has a problem with nearly $17 trillion in uninsured deposits in local banks.
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The US Treasury Department is examining whether federal regulators have enough emergency authority to temporarily insure deposits greater than the current cap of $250,000 on most accounts, according to unnamed sources who spoke to Bloomberg earlier this week. According to reports, the Mid-Size Bank Coalition of America, which includes institutions with assets up to $100 billion, is pushing for the legislation.
After Silicon Valley Bank and Signature Bank collapsed earlier this month, the US banking industry has recently been hit by a wave of failures. Credit Suisse, the second-largest lender in Switzerland, was forced to merge with a rival investment bank, UBS, as a result of the turmoil spreading to Europe.
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Deripaska claims that the crisis will continue despite the urgent rescue efforts, which will cause UBS Group to fail as well.
