STORY: Expert decries U.S. debt surpassing 35 trillion USD "unhealthy"
SHOOTING TIME: Aug. 2, 2024
DATELINE: Aug. 3, 2024
LENGTH: 00:01:02
LOCATION: ISTANBUL, Türkiye
CATEGORY: POLITICS

SHOTLIST:
1. SOUNDBITE 1 (Turkish): SANT MANUKYAN, Analyst at Is Yatirim
2. SOUNDBITE 2 (Turkish): SANT MANUKYAN, Analyst at Is Yatirim

STORYLINE:

The U.S. federal government's public debt has surged beyond 35 trillion U.S. dollars for the first time, a threshold that a Turkish expert has described as a sign of problematic borrowing.

Sant Manukyan, an analyst at Is Yatirim, the investment banking division of Isbank Group in Istanbul, told Xinhua that this borrowing does not benefit the economy and is far from healthy.

SOUNDBITE 1 (Turkish): SANT MANUKYAN, Analyst at Is Yatirim
"If this debt was invested in areas that could make the economy more efficient and spur faster growth, the economy should have outpaced the debt costs over time, leading to a reduced debt ratio.
We are not seeing this outcome. In other words, this is not healthy borrowing or borrowing that benefits the economy.
In the short run, the Fed would likely lower interest rates in the short term amid an expected general economic slowdown. 
Therefore, we see that the burden of interest rates to decline. However, based on their performances, former President Donald Trump and Vice President Kamala Harris appear likely to continue this trend."

Manukyan said the ongoing trend of high U.S. debt will impact the developing world and the global economy.

SOUNDBITE 2 (Turkish): SANT MANUKYAN, Analyst at Is Yatirim
"American forecasts are crucial, because they underpin the financial system. Any problems here will inevitably disrupt pricing across the board. From that perspective, it's important to be cautious."

According to data released by the Treasury Department on Monday, the U.S. federal government's total public debt exceeded 35 trillion dollars for the first time as of last week. This followed the country's national debt surpassing 34 trillion dollars in late December 2023 and exceeding 33 trillion dollars three months prior.

Xinhua News Agency correspondents reporting from Istanbul, Türkiye.
(XHTV)