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Do we see a sign of increased prosperity here?

I haven't find a similar chart for public debt yet, but you can be sure there has been a massive growth mainly due to the stimulus packages. Replacing private debt with public debt is what Keynesian inspired economists tend to do.

The question remain is, HOW DO YOU force the private sector to borrow again? Do you point a gun at their head and say, BORROW FROM THE BANK NOW OR ELSE GO TO JAIL? Give them incentives like lowering interest rates? Give them tax credits? But what if the private sector is still reluctant to borrow?

Looking at the chart above may seem bad, but in reality, it's ALOT WORSE in the US right now. As defaults are rising, banks are afraid to borrow and hoard reserves, while the consumers who have lost a large chunk of their assets become savers all of a sudden and reduce spending/borrowing. In turn, private businesses does the same in response to this.

<blockquote data-quote="Temjin" data-source="post: 501980" data-attributes="member: 6397"><a href="http://cij.inspiriting.com/?p=813" target="_blank">http://cij.inspiriting.com/?p=813</a>Do we see a sign of increased prosperity here?I haven&#039;t find a similar chart for public debt yet, but you can be sure there has been a massive growth mainly due to the stimulus packages. Replacing private debt with public debt is what Keynesian inspired economists tend to do. The question remain is, HOW DO YOU force the private sector to borrow again? Do you point a gun at their head and say, BORROW FROM THE BANK NOW OR ELSE GO TO JAIL? Give them incentives like lowering interest rates? Give them tax credits? But what if the private sector is still reluctant to borrow? Looking at the chart above may seem bad, but in reality, it&#039;s ALOT WORSE in the US right now. As defaults are rising, banks are afraid to borrow and hoard reserves, while the consumers who have lost a large chunk of their assets become savers all of a sudden and reduce spending/borrowing. In turn, private businesses does the same in response to this.</blockquote>

[QUOTE="Temjin, post: 501980, member: 6397"] [url]http://cij.inspiriting.com/?p=813[/url] Do we see a sign of increased prosperity here? I haven't find a similar chart for public debt yet, but you can be sure there has been a massive growth mainly due to the stimulus packages. Replacing private debt with public debt is what Keynesian inspired economists tend to do. The question remain is, HOW DO YOU force the private sector to borrow again? Do you point a gun at their head and say, BORROW FROM THE BANK NOW OR ELSE GO TO JAIL? Give them incentives like lowering interest rates? Give them tax credits? But what if the private sector is still reluctant to borrow? Looking at the chart above may seem bad, but in reality, it's ALOT WORSE in the US right now. As defaults are rising, banks are afraid to borrow and hoard reserves, while the consumers who have lost a large chunk of their assets become savers all of a sudden and reduce spending/borrowing. In turn, private businesses does the same in response to this. [/QUOTE]

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