Goldman Sachs President John Waldron said that the US government should not be misled into believing that people's appetite for US debt is endless.
The Zhitong Finance App learned that Goldman Sachs President John Waldron said that the US government should not be misled, believing that people's appetite for US debt is endless.
In an interview, Waldron said, “There's no evidence we can't continue, but those of us who have been following this trend for a long time are concerned that this is an unsustainable rate. If America continues to be a good place to invest, we need to show more discipline in the financial system.”
The Wall Street giant's long-time No. 2 figure has reiterated one of his main concerns, that complacency about indiscriminate borrowing is based on the assumption that the US will continue to enjoy reserve currency status, which may not always be the case. Waldron said that although it is necessary to stimulate certain areas of the economy from a fiscal perspective, the Republican Party and the Democratic Party need to find a way to establish stricter discipline in fiscal spending.
The banker previously warned that the combination of the political crisis and rising leverage in the Treasury system could trigger serious incidents in the financial market. He said that as investors turn their attention to the US election later this year, the key issues they will focus on may revolve around taxation and regulation.