Economist: US faces structural crisis
The United States is facing serious economic problems, which are not yet possible to solve, so the growth of inflation will continue despite the measures taken by the government – as noted by economist Mikhail Khazin in his talk with Soloviov Live
The US Federal Reserve System has recently raised the base interest rate, doing this for the fourth time in a row. Following the November meeting, it was decided to increase the indicator by 75 basis points – to 3.75-4 percent.
“A structural crisis has begun in the United States. It was described in The Sunset of Dollar Empire and the End of Pax Americana book. It was later explained and clarified, but the first edition was released 20 years ago. It clearly states that when there is a structural crisis, there is a decline in the economy and, accordingly, a change in the structure of demand and production. Exactly this is happening in the United States right now," Mr. Khazin explained.
According to the economist, it will not be possible in the current situation to stop the growth of inflation in the United States – even with the help of an increase in the base rate.
“If to look at the official data on industrial inflation, it made around 20 percent from September to June-July regarding the entire volume of industrial output. The PPI index goes for a limited volume of goods, roughly speaking, for final goods in chains, but we need to look at the entire volume, since inflation rises from below sooner or later," Mr. Khazin added.
