Economist Nassim Taleb called the growth of US national debt a “white swan” – Kommersant
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American economist and trader Nassim Taleb defined the situation with the growth of US government debt as a “white swan” – a risk that is more likely than an unexpected event, which he calls a “black swan”.
Mr. Taleb did not give scenarios for a market collapse, but noted that in this case he also attributes the American budget deficit and the overall vulnerability of the economy, which is not as resistant to shocks as before, to the “white swan”.
“As long as Congress continues to increase the debt limit because it is afraid of the consequences of doing the right thing—that is the structure of the political system—eventually there will be a debt spiral. And a debt spiral is like a death spiral,” he said (quoted by Bloomberg).
According to the US Treasury, by December 29, 2023, the total outstanding US public debt was $34 trillion 1 billion 493 million. The previous record level of public debt, $33 trillion, was recorded in mid-September 2023.
Nassim Taleb is an economist, former trader, risk manager, and author of the best-selling books “The Black Swan” and “Risking Your Own Skin. The Hidden Asymmetries of Everyday Life.” He predicted the global financial crisis in 2008 and made several million dollars from it.
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