Black Swan author Nassim Taleb has voiced alarming concerns over the United States' growing government debt and shortage of funds, predicting a “death spiral” for the country. Despite America's robust economy, these dire forecasts pose the question of whether the US can handle such a crisis. Taleb argues that the budget deficit and the significant increase in national debt could lead the US into a “death spiral.” The expert's assessment highlights a rapid escalation in the shortage of federal funds, suggesting that overcoming the inflicted damage would require nothing short of a miracle. According to the author, as long as the US Congress continues to extend the debt ceiling, the country will face ongoing problems. In the context described as “grim” by the expert, finding positives is challenging. Taleb attributes this to the overarching political system in the Western world, arguing that globalization has made the world interdependent, where economic issues in one region can have a domino effect on others. As of early January 2024, the US national debt surpassed $34 trillion, marking an increase of over $4 trillion from the previous year. Against this backdrop, US Treasury Secretary Janet Yellen described the country's external debt as “frightening.” Yet, she tempered the stark warning by adding that such debt levels are “manageable,” given the strength of the American economy.
