The US enters a new economic 'supercycle'.

According to RIA Novosti on October 21, in an analysis by Business Insider, journalist Lynette Lopez argues that the period of growth for the US economy is over, and it is being replaced by a new "supercycle" with its own conventions.

"For the past 15 years, the US economy has been characterized by weak demand and low interest rates – a consequence of the Great Recession that lasted more than a decade. Now this is coming to an end. The world has changed, and we are entering an era of higher inflation and geopolitical instability that will redirect money flows worldwide," journalist Lopez explained.

Economists say the most prominent feature of the old era was the risk of deflation – the possibility that a lack of demand would cause wages and prices to plummet. This was seen as a "trap from which it was difficult to escape."

According to Business Insider, the start of a new economic cycle shows that the results of fiscal policy are contrary to the expectations of experts.

Journalist Lopez issued a warning: “Now, with the advent of a new ‘supercycle,’ investment managers are once again forced to adapt to a range of changing economic realities.”

It should be noted that this cycle will become a process of "natural selection" and will change the normal cycle of the US economy, forcing all financial centers to adapt to the new conditions of the financial system.

Economists also argue that we are now entering a supercycle characterized by three powerful factors. First, higher interest rates – good news for savers, but leading to increased risk appetite. Second, geopolitical and economic volatility will create inflationary effects, reviving the “ghost of soaring prices.” Third, industrial planning is increasingly influenced by national security concerns, altering supply chains across industries.

One of the clearest signs that a new economic supercycle is coming is when financial rules become chaotic. The previous supercycle was triggered when the Federal Reserve, in response to the devastation caused by the financial crisis, cut its benchmark interest rate to 0% – the first time the central bank had “hit rock bottom.”

In May 2024, the US Congressional Budget Office released a report stating that the country's national debt would rise to 166% of GDP over the next 30 years, with the risk of it reaching 250% of GDP not being ruled out.

During Joe Biden's presidency, the US national debt increased from $28 trillion in 2021 to an unprecedented level of over $34.5 trillion in 2024.