As the BRICS continue their growth plans, BlackRock CEO Larry Fink has issued a stark economic warning to the G7 nations. Financial Times Writes an article urging groups to reassess infrastructure ahead of the looming debt crisis in 2030.
The BlackRock representative noted that this group of seven countries accounts for “61% of global public debt.” Moreover, he said that “the economic future of the world’s leading democracies” depends on their ability to reduce that figure in the coming years.
Related article: BRICS: Two new developing countries apply to join alliance in 2024
BlackRock CEO urges G7 to tackle looming debt crisis
While the past two years have seen the BRICS alliance focus on growth — the group has already nearly doubled its membership, and will likely invite new members for a second consecutive year at its summit in 2024 — the Western alliance is heading for trouble.
It feels as though competition is fueling their discord. As the BRICS grow, BlackRock has issued economic warnings to the G7 alliance, with Larry Fink in particular urging growth and infrastructure development to give the BRICS any chance in the coming years.
“The US, the UK and their allies face the same growth dilemma,” Fink said. “Debt burdens have grown so large that they can no longer be contained by conventional fiscal policy. By 2030, the amount that USU governments have to pay (mandatory spending and net interest on the debt) will permanently exceed their income (tax revenues).”
![G7 vs BRICS Currencies](https://watcher.guru/news/wp-content/uploads/2023/04/6-G7-summit-concludes-1024x576.jpg)
![G7 vs BRICS Currencies](https://watcher.guru/news/wp-content/uploads/2023/04/6-G7-summit-concludes-1024x576.jpg)
![G7 vs BRICS Currencies](https://watcher.guru/news/wp-content/uploads/2023/04/6-G7-summit-concludes-1024x576.jpg)
![G7 vs BRICS Currencies](https://watcher.guru/news/wp-content/uploads/2023/04/6-G7-summit-concludes-1024x576.jpg)
Also read: G7: Could the alliance launch its own digital payments system?
Fink’s comments make it clear that the debt problem can no longer be ignored. “Even if discretionary spending went to zero, the country would still have a deficit,” he added. He went on to say that traditional spending cuts and tax increases alone would not be enough to “solve the debt crisis.”
This isn’t just an American problem, Fink asserts. “It’s true for most of the G7 countries.” The G7 accounts for 45% of global GDP, but that number is declining — specifically, it’s being pushed out by the ever-growing BRICS countries. But the most frightening statistic Fink presents is that the G7 accounts for “11%” of the world’s workforce.
Fink speaks of growth throughout the article. Moreover, he emphasizes that growth and pragmatism are the only paths to freedom. “By 2065, Canada will be the only G7 country whose population is not declining.” This has to change, or the next five years could be very geopolitical.