But What About National Debt-to-GDP Ratio? Not a Problem, Really

In the comments to my post on the extraordinarily weak 2nd qtr 2011 GDP numbers a reader asks for my thoughts about debt-to-GDP ratio and "how can we afford more stimulus"?  Since my response will be a little long and others might be interested, I'll post it here. Reader AZLeader asks: Here are some other GDP … Continue reading But What About National Debt-to-GDP Ratio? Not a Problem, Really

Private Debt vs. Government Debt

The Great Recession of 2007-2009, which has been morphing into a Depression, has been different from most recessions of the post-World War II era.  It has been what economists call a "balance-sheet" recession.  Normally (at least since World War II), recessions were the result of the central bank (The Fed in the U.S.) raising interest … Continue reading Private Debt vs. Government Debt