The debt ratio in the USA is becoming increasingly threatening. Depending on the calculation, it is currently around 100 percent of gross domestic product. For comparison: Germany carries around 70 percent.
As different as the applicants for the US presidential election on November 5th are, incumbent
Joe Biden
(81) and challenger
Donald Trump
(77) have one thing in common: Both programs would cause the debt ratio to continue to rise sharply. The International Monetary Fund, for example, calculates a quota of 140 percent of GDP by the next presidential election in 2028. Leading economists like
Olivier Blanchard
(75), once the IMF's chief economist, are already "very concerned."
After all, the US Treasury bond market is the largest investment market in the world. And the rising level of debt presents uncertainties that could lead to severe market turbulence. For example, is the solvency of the USA as a debtor guaranteed in any case? What happens if Biden's debt-financed economic programs do not lead to the hoped-for growth, but above all to more inflation? And what does the difficult situation mean for German private investors?
In this podcast, Christian Schütte, chief economist at manager magazin, provides information about this in conversation with editor-in-chief Sven Clausen.
In the “Das Thema” podcast, editor-in-chief Sven Clausen provides information every week about the editorial team’s exclusive findings on a topic that is crucial for the German economy. You can subscribe to the podcast via manager magazin as well as on Spotify, Apple, Deezer and Google.
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