"All signs point to a fiscal train wreck in 2025 when the debt limit is triggered, spending surges, and tax rates jump," Malpass said in a post on LinkedIn.
Malpass noted that the explosion of US government debt is draining and concentrating global resources into a narrow set of US government priorities and beneficiaries.
The key problems of the American economy are the lack of new investment amid a huge growth in public spending resulting in an unprecedented debt-to-GDP ratio as well as short-term financing crowding out small businesses, the post said.
The US debt currently exceeds $34.5 trillion.