Re: Debt as % of GDP & Growth

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Posted by warren mosler (208.50.124.154) on 09:30:36 02/13/08

In Reply to: Debt as % of GDP & Growth posted by Diane Nugent

Hi Dianne, you need to switch to my blog!
moslereconomics.com

on this sight back in q2 06 i indicated the deficit was too small to support the kind of credit expansion we had been getting that was needed to support the credit structure and sustain domestic demand sufficiently to support 3-4% gdp growth.

this did happen, and demand has been falling off ever since, particularly as the sub primer's bid for homes fell by the wayside.

however, gdp has been sustained by exports growing faster than i expected as foreigners attempt to spend their hoard of $US financial assets rather than increase it. this could last a while. more on this on my blog

: Warren,
: Should we be concerned about the chart in the interview from Barrons in the link below?
:
: http://online.barrons.com/article/SB120251582071855267.html?mod=b_hps_9_0001_b_this_weeks_magazine_home_right
:
: Diane

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Subject:	Re: Debt as % of GDP & Growth
Comments:	: : Hi Dianne, you need to switch to my blog! : moslereconomics.com : : on this sight back in q2 06 i indicated the deficit was too small to support the kind of credit expansion we had been getting that was needed to support the credit structure and sustain domestic demand sufficiently to support 3-4% gdp growth. : : this did happen, and demand has been falling off ever since, particularly as the sub primer's bid for homes fell by the wayside. : : however, gdp has been sustained by exports growing faster than i expected as foreigners attempt to spend their hoard of $US financial assets rather than increase it. this could last a while. more on this on my blog : : : : Warren, : : Should we be concerned about the chart in the interview from Barrons in the link below? : : : : http://online.barrons.com/article/SB120251582071855267.html?mod=b_hps_9_0001_b_this_weeks_magazine_home_right : : : : Diane :
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