Larry Fink, Chief Executive Officer of BlackRock Inc., expressed deep concern about the urgency of the United States' public debt situation, stating it is more pressing than ever before. He emphasized the necessity for the country to implement policies that promote economic growth. Fink argued that solely relying on taxes and spending cuts would not effectively address the problem. In his annual letter released on Tuesday, he warned of a potential "bad scenario" resembling Japan's economic challenges in the late 1990s and early 2000s, leading to a period of austerity and economic stagnation.
Fink highlighted the challenges of combating inflation in a high-debt America, where raising interest rates could significantly exacerbate the already unsustainable debt-servicing burden. He noted the alarming increase in the cost of servicing the debt, pointing out the substantial rise in interest payments on 10-year Treasuries over the past three years, which he deemed "very dangerous."< ...
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