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Executive Sadman

Krug-Nut

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http://krugman.blogs.nytimes.com/2013/09/17/this-is-not-a-crisis/?_r=0

If you have an ignorant readership, why not exploit their ignorance?

In Krug-nut world, lets ignore 80% of the debt problem, debt which isnt government issued. Except when it goes bad, which inevitably it does when credit is cheap and easy, folks like Gordon or Bush or Obama step in, get the taxpayer to guarantee it and effectively make it government debt, lest we have a dreaded debt deflation.

In pictures: Krug-Nut world, where 20% consciousness is just fine and dandy, debts only reach 100% of GDP in a few decades:

091713krugman5-blog480.png

The real world, where the actual pressures on peoples monthly income are visualized, debt is somewhere around 400% of GDP:

total-usd-debt-to-gdp-1977-2012.jpg

To be fair, the US did make some headway on reducing aggregate debt in 2009/2010, as the private sector deleveraged faster than the fed.gov took on debt, although thats stopped now.

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