Total USA debt is declining

(written by lawrence krubner, however indented passages are often quotes). You can contact lawrence at: lawrence@krubner.com, or follow me on Twitter.

Interesting:

What you see here is a gradual decline in overall debt — not at all what you hear in the public debate. Now, the composition of that debt is changing: rising public debt, falling private debt. But that’s exactly what you need to deal with the aftermath of a Minsky moment: you need to reduce the debt of balance-sheet-constrained players, so that the drag on the economy is reduced over time, eventually getting us to the point where deficit spending is no longer needed to sustain the economy.

Post external references

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    http://krugman.blogs.nytimes.com/2012/01/20/debt-and-transfiguration-2/
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