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25 Mar, 2023 05:30

Global adventures cost US economy $33 trillion – Russian tycoon

Sanctioned businessman Oleg Deripaska says exorbitant government spending will lead to a financial crash
Global adventures cost US economy $33 trillion – Russian tycoon

One of Russia's richest men has warned that the American economy is currently in a very challenging situation, due to global overreach. Tycoon Oleg Deripaska made the comments using his Telegram channel on Friday.

He believes the underlying economy cannot take the weight of the country’s enormous government debt and exorbitant spending.

“Reckless militarization, sanctions against everyone, and military adventures around the world have already cost this country almost $33 trillion,” said the billionaire, who was sanctioned by the US last year. However, he provided no details on where this figure came from.

Deripaska noted that the US has never come so close to the bankruptcy of public finances.

“Printing more money is useless. Therefore, they will quietly discuss how to raise the debt ceiling in Congress,” he explained.

“Lots of heads will roll this spring in Washington,” he said, adding that this will pave the way for peace in 2025.

According to the founder of the world’s second-largest aluminum company, Rusal, Washington also faces the problem of unsecured deposits in regional banks that amount to nearly $17 trillion.

Earlier this week, unnamed sources told Bloomberg that the US Treasury Department is reviewing whether federal regulators have sufficient emergency authority to temporarily insure deposits greater than the current $250,000 cap on most accounts. The measure is reportedly being sought by the Mid-Size Bank Coalition of America, which includes banks with assets of as much as $100 billion.

The US banking sector has recently been hit by a wave of failures after the collapses earlier this month of Silicon Valley Bank and Signature Bank. The turmoil has spread to Europe, engulfing Switzerland’s second-largest lender Credit Suisse, which was forced to merge with rival investment bank UBS.

According to Deripaska, the emergency rescue won’t stop the crisis, which will derail UBS Group as well.

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