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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Ilaine who wrote (108756)6/14/2001 6:24:51 PM
From: Mark Adams  Read Replies (2) of 436258
 
I thought out a few ideas on measuring the expansion of debt vs GDP- but now I'm having trouble with the basic concept. One of those times where I have to go back and question fundamental concepts.

The proposed premiss is Debt bought GDP growth. I think the premiss needs proof. Why should increased debt drive increased production? Is it possible that increased debt represent consuming past savings- deferred consumption?

Well- I haven't a clear idea where I'm headed with this- I'd like some simple equation like GDP = Gross Production - Debt + Investment, but I haven't enough brain power at the moment to achieve the epiphany.

I did note that the pattern of using data since 94 on many of the charts from Contrary and Prudent Bear might be related to the Fed Flow of Funds doc you linked. That data goes back 5 years, thus creating charts that included, say a decade of data, would require additional effort on the part of the writers/researchers.

While going over the material included, I found some great balance sheet info, some of which I used to create these charts;

rbcassociates.homestead.com

rbcassociates.homestead.com

rbcassociates.homestead.com
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