Getting Out Of Dodge

Total US credit market debt vs. nominal GDP – an ever widening gap. Eventually, something will have to give. It is not debt per se that is “bad” – it is the fact that much of it has supported overconsumption and malinvestment of capital. In other words, real wealth was diverted into unproductive channels and much capital was consumed. This is a process that will indeed turn out to have a limit. [PT]

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