Daofu Group CEO: US debt has reached an astonishing level, may rise to 125% of GDP within ten years.

Ronald P. OHanley, Chairman and CEO of State Street Corporation, stated at the main summit of the 3rd Annual International Financial Leaders Investment Summit hosted by the Hong Kong Monetary Authority that the United States' debt has reached a staggering level, and considering the country's economic situation, the debt may rise to 125% of GDP within the next decade. Under a tightening cycle, the costs of debt and debt servicing could double over the next 25 years. He further mentioned that despite the increasing debt, it was surprising that no one mentioned the issue of debt during the US presidential election. It is difficult to imagine the sustainability of wealth with the current government spending plans and tax policies being discussed. He believes that when the market sees failed US bond auctions or poor reactions to US bond auctions, investors will begin to feel nervous about the level of US debt. However, at present, everyone still believes that there are many solutions to address the increasing debt, such as the Federal Reserve returning to quantitative easing policies and continuing to purchase debt, but it is unknown how long this situation can be sustained.