Diminishing Marginal Productivity Of Debt In The U.S. Economy
Posted By thestatedtruth.com on July 27, 2010
This means each additional dollar of debt is now working its way into a negative muliplyer effect on our economy….not to long ago, it had just the opposite effect, the more debt, the more we would grow. Now at some point going forward, a hiccup in the trillions of dollars of derivatives will set off a domino effect of defaults, the system wil be purged (if everything doen’t melt down in the process) and we will reset the economy for another growth cycle. It’s likely a matter of how long we have to wait for this whole thing to completly wash out.  Not rocket science, just basic economics 101.
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