BEIJING, July 13 (Xinhua) -- The U.S. debt crises have exposed flaws in U.S. politics and fiscal policy, an Italian economist has said, warning governments and investors around the world to be alerted.
Andrew Spannaus, lecturer of Catholic University of Milan, said the U.S. government bonds have long been considered as a safe asset, but investors' confidence has been affected by the repeated debt crises which erode the creditworthiness of the U.S. government and the value of dollar assets.
According to the Global Debt Monitor issued by the Institute of International Finance recently, the global debt stock has hit 305 trillion U.S. dollars, 45 trillion dollars higher than before the COVID-19 pandemic.
The United States has the world's highest national debt, which stands at 31.4 trillion U.S. dollars, raising further concerns about U.S. government spending and borrowing costs.
Since 1945, the United States has raised its debt ceiling 103 times. In recent years, many businesses have begun to adopt "de-dollarization" methods in international trade due to the fluctuations of the greenback, the slump in the U.S. economy as well as potential political risks.
Produced by Xinhua Global Service
