{"id":3282,"date":"2014-12-20T08:03:43","date_gmt":"2014-12-20T13:03:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3282"},"modified":"2014-12-20T08:03:43","modified_gmt":"2014-12-20T13:03:43","slug":"im-not-buying-it-not-the-wall-street-rip-nor-the-keynesian-rap-david-stockmans-contra-corner","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3282","title":{"rendered":"I\u2019m Not Buying It\u2014\u2014Not The Wall Street Rip, Nor The Keynesian Rap | David Stockman’s Contra Corner"},"content":{"rendered":"

I\u2019m Not Buying It\u2014\u2014Not The Wall Street Rip, Nor The Keynesian Rap | David Stockman’s Contra Corner<\/a>.<\/p>\n

First comes production. Then comes income.\u00a0Spending and savings follow. All the rest is debt\u2026\u2026.unless you believe in a magic Keynesian ether called \u201caggregate demand\u201d and a blatant stab-in-the-dark called \u201cpotential GDP\u201d.<\/p>\n

I don\u2019t.\u00a0 So\u00a0let\u2019s start with a pretty startling contrast between two bellwether data trends since the pre-crisis peak in late 2007\u2014debt versus production.<\/p>\n

Not surprisingly, we have racked up a lot more debt\u2014notwithstanding all the phony palaver about \u201cdeleveraging\u201d.\u00a0 In fact, total credit market debt outstanding\u2014-government, business, household\u00a0and finance\u2014-is up by 16% since the last peak\u2014from $50 trillion to $58 trillion.\u00a0And that\u00a02007\u00a0peak, in turn,\u00a0was up 80% from the previous peak (2001); and that was up 103% from the business cycle peak before that (July 1990).<\/p>\n

Yes, the debt mountain just keeps on growing.\u00a0It now stands 4.2X higher than the $13.6 trillion outstanding just 24 years ago.<\/strong><\/em><\/p>\n

<\/p>\n

<\/a><\/a>…click on the above link to read the rest of the article…<\/span><\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

I\u2019m Not Buying It\u2014\u2014Not The Wall Street Rip, Nor The Keynesian Rap | David Stockman’s Contra Corner. First comes production. Then comes income.\u00a0Spending and savings follow. All the rest is debt\u2026\u2026.unless you believe in a magic Keynesian ether called \u201caggregate demand\u201d and a blatant stab-in-the-dark called \u201cpotential GDP\u201d. I don\u2019t.\u00a0 So\u00a0let\u2019s start with a pretty […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,2027,467,860],"class_list":["post-3282","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-deleveraging","tag-keynesian-economics","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3282"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3282\/revisions"}],"predecessor-version":[{"id":3283,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3282\/revisions\/3283"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}