Courtesy of Mish.
Today we learned from the IMF that World Debt Hits $152 Trillion.
That’s a record breaking amount. It’s also more than two times the size of the entire global economy.
The problem is: It’s simply not enough.
How do I know it’s not enough? Paul Krugman, Larry Summers and other Keynesian economists tell us that.
Not Enough Debt
Paul Krugman tells us Debt is Good.
Krugman says … “Believe it or not, many economists argue that the economy needs a sufficient amount of public debt out there to function well. And how much is sufficient? Maybe more than we currently have. That is, there’s a reasonable argument to be made that part of what ails the world economy right now is that governments aren’t deep enough in debt.”
Too Much Savings
