Wow, that sure eclipses China’s 300% Debt-GDP ratio!
“In its calculations, AB Bernstein pulls in debt from a variety of sources and compares it to GDP as follows:
- 100% of GDP using federal, state and local government debt combined.
- 150% for households and firms
- 450% for financial debt, which carries “conceptual issues and risks,” namely that debt held by financial firms often represents potential in a worst-case scenario involving various derivative instruments that can carry high notional levels that are unlikely ever to be realized.
- 27% in trusts for social insurance programs”.
Read the rest of the article at CNBC