Determining America’s debt

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Well there’s a rose in the fist­ed glove
And eagle flies with the dove
And if you can’t be with the one you love hon­ey
Love the one you’re with
(Stephen Stills 1970)

As I not­ed in the pre­vi­ous post, I’m work­ing with the Governor’s Woods Foun­da­tion to pro­duce a com­pre­hen­sive data set on pri­vate debt for its Debt-Eco­nom­ics project (see www.debt-economics.org). As part of that, last week I real­ized that the Flow of Funds data on finan­cial sec­tor debt wasn’t what I had hoped it was, and I had to revise down my esti­mates of the US pri­vate debt to GDP ratio from 1952 till today. That revi­sion implied that today’s “Peak Debt” lev­el was low­er than that of the Great Depres­sion.

Maybe not.

Read more: http://www.businessspectator.com.au/article/2013/7/22/economy/determining-americas-debt#ixzz2bHo4P2x2

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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.