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Real US debt levels could be 2,000% of economy, a Wall Street report suggests
*Total U.S. debt including all forms of government, state, local, financial and entitlement liabilities comes close to 2,000% of GDP, according to AB Bernstein.
*The biggest potential load comes from entitlements, but is being pressured from rising levels of federal government debt as well.
*The warnings about potential debt hazards come as the total federal debt outstanding has surged to $22.5 trillion.
*A debt reform advocate says now is the time for the U.S. to tackle the issue, before recession hits.
Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level.
AB Bernstein came up with the calculation — 1,832%, to be exact — by including not only traditional levels of public debt like bonds but also financial debt and all its complexities as well as future obligations for so-called entitlement programs like Social Security, Medicare and public pensions.
https://www.cnbc.com/2019/09/09/real...-suggests.html
*Total U.S. debt including all forms of government, state, local, financial and entitlement liabilities comes close to 2,000% of GDP, according to AB Bernstein.
*The biggest potential load comes from entitlements, but is being pressured from rising levels of federal government debt as well.
*The warnings about potential debt hazards come as the total federal debt outstanding has surged to $22.5 trillion.
*A debt reform advocate says now is the time for the U.S. to tackle the issue, before recession hits.
Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level.
AB Bernstein came up with the calculation — 1,832%, to be exact — by including not only traditional levels of public debt like bonds but also financial debt and all its complexities as well as future obligations for so-called entitlement programs like Social Security, Medicare and public pensions.
https://www.cnbc.com/2019/09/09/real...-suggests.html