2 SEPT -- REVIEWING MY CONTEXT POST.. THIS IS AN IMPORTANT GRAPH, THE ECONOMIST'S IT'S A DRAG GRAPH THAT I BORROWED.. IT SHOWS "GROWTH PER DOLLAR OF DEBT" FALLING TO ABOUT 10 CENTS.. IT SAYS ONLY 10 CENTS OF INCOME IS GENERATED FROM EVERY NEW DOLLAR OF DEBT.. IT CONFIRMS THE VIEW THAT CREDIT EFFICIENCY IS VERY LOW.. IT SUGGESTS THAT DEBT IS A PROBLEM BECAUSE OF THE COST OF IT.. I HAD TO GO BACK TO THE SPECIAL REPORT ON DEBT AND READ IT AGAIN..
READING IT RAISED SEVERAL ADDITIONAL POSTABLE THOUGHTS.. ..
From A special report on debt: Repent at leisure, The Economist, 24 Jun 2010
The answer to all problems seemed to be more debt... When the European Union countries met in May to deal with the Greek crisis, they proposed a €750 billion ($900 billion) rescue programme largely consisting of even more borrowed money.
I have the same complaint. When the problem is debt, the only solution our leaders can think of is more debt.
Well, at least that answers the question How did we get into this mess?
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