Saturday, September 14, 2019

Is the actual US Debt over $400 trillion?

Philipp Carlsson-Szlezak


See https://www.rt.com/business/468658-us-debt-report-economy/

A new report suggests that the real US debt level may be $400 trillion, or 20 times higher than the country’s gross domestic product.

I am linking to this because it is in the news, but I don't believe it.  It is mentioning a report supposedly created by Philipp Carlsson-Szlezak, chief US economist at AB Bernstein.

I don't think RT News is a credible source.  This article doesn't even name who wrote it.  I write some crazy stuff, but I always link to my sources.  There are no links to this supposed report.  I think this is a hoax.  AllianceBernstein has a blog: https://blog.alliancebernstein.com/en/home.htm, with no mention of this report.

The actual situation is bad enough without exaggerating.  So the answer to the question is NO, the actual US debt is not over $400 trillion.

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Here is another article which also doesn't link to the source:
https://www.cnbc.com/2019/09/09/real-us-debt-levels-could-be-a-shocking-2000percent-of-gdp-report-suggests.html .  This article was written by a reporter named Jeff Cox. This article supposedly quotes from the report:

“This conceptual difference is important to acknowledge because this lens is often used by those who wish to paint a dire picture about debt,” Philipp Carlsson-Szlezak, chief U.S. economist at AB Bernstein, said in the report. “While the picture is dire, such numbers don’t prove we are doomed or that a debt crisis is inevitable.”  “U.S. debt is large. And it’s growing. But if we want to think about debt problems (in any sector – sovereign, households, firms or financials) the conditions rather than the levels are more significant,” Carlsson-Szlezak said. “Debt problems could, arguably would have, already happened at lower levels of debt if the macro conditions forced it.”

I still don't believe it.  If there is a report floating out there on the Interwebs, there must be a link to it somewhere even if it is behind a firewall.  And there is nothing.  Other than these two articles, and other news items that quotes these two. FAKE.

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