Saturday, December 22, 2012

LL&J4A: Debt-Reset Is Inevitable


A pretty damn good blogger who identifies him herself only as "anonymous" writes:

There is mounting evidence that at high private debt loads, the purchasing power of debt has diminishing returns... If so, it might be the case that small amounts of public debt at low private debt/GDP ratios can purchase staggering GDP growth rates, but that large amounts of public debt at high private debt/GDP ratios will purchase decreasingly positive GDP growth rates until the GDP growth rate is zero.

Here, read it again:

If so, it might be the case that small amounts of public debt at low private debt/GDP ratios can purchase staggering GDP growth rates, but that large amounts of public debt at high private debt/GDP ratios will purchase decreasingly positive GDP growth rates until the GDP growth rate is zero.

You can tell I think that's good. I don't double-quote just anyone.

3 comments:

Joshua Wojnilower said...

Great find! I'll have to take a look at that entire post. Certainly agree with you that those words fit my preferred story.

Anonymous said...

I'm the author, and I'm female. No worries, I know most minds interested in this are male. Thank you for the kind words.

The Arthurian said...

Corrected. It was a good post :)

(Perhaps there is a suggestion of gender in the name of your blog.)