There is an interesting blog today by Steve Keen, which I think explains
quite a lot about our current predicament. Go to
www.debtdeflation.com/blogs/ to read it, as well as www.nakedcapitalism.com/
to see it reproduced on another very good, and wider, blog.
Keen refers to the situation in Australia, where he says government debt is
5.5% of GDP and private debt is over 150% of GDP. Of course both figures
are very different in the UK and the US, but I think his argument still
[Hat-tip: Tom Lines]