World-renowned scholar Ataly "The U.S. economy is bankrupt..."Unable to discharge debt"

Jacques Attali, a world-renowned French scholar, claimed that the U.S. public debt is at its highest level since World War II and that "the U.S. is broke."

Attending the Future Investment Initiative, FII, held in Riyadh, the capital of Saudi Arabia, as a speaker on the 30th local time, Attali said, "If growth weakens, the U.S. sovereign debt and dollar situation will worsen," adding, "A major catastrophe could occur."

The U.S. has lowered its debt, which has reached 116% of GDP since 1945, to 20% thanks to growth, he said. "Now, no matter how much the economy grows, we cannot handle the debt of 125%, which is impossible."

According to data released by the U.S. Treasury Department, the ratio of U.S. federal debt to GDP fell from 96% in 1948 to 32% in 1974 before turning upward to 124% as of 2024.

"This is why China prefers Trump," Atali said, pointing out that former President Donald Trump, a Republican candidate, pledged "universal tariffs" in the face of the U.S. presidential election, which is a week away.

The comments are interpreted as meaning that if the U.S. administration pushes for a stronger tariff policy, U.S. trade will be reduced, reducing economic growth engines, which could be a reflective benefit for China, which competes for global economic hegemony.

Historically, there are only four ways to escape debt: growth and taxation, inflation and war, he said. "The only safe way is growth."

With the inauguration of a new president early next year, raising the U.S. federal government's cap on national debt could also be seen as a solution, but he was worried that "weakening growth would be a huge disaster."

"The world will face the fact that no matter who becomes the new U.S. president, the world's most powerful economy and currency will go bankrupt," he warned.

Attali, a French economist, is a world-renowned scholar who has written dozens of books, including A Better Future and Waves of the Future.