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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (101087)8/20/2009 5:17:21 PM
From: Amark$p3 Recommendations  Read Replies (2) of 116555
 
Thanks for your comments. I am trying to better understand your position on how US reduces its total credit market debt as % of GDP from 376% to a more reasonable and sustainable level of about 175%.



Under your hypothesis of deflationary spiral:
1) how many years will it take for 376% to be brought down to 175%
2) how exactly will this debt level be brought down (e.g. default, via US savings of 10% per year for the next 20 years, or some other means).
3) will US somehow grow its GDP significantly via new technologies so debt comes down relative to GDP
4) some other means to reduce this debt to GDP ratio...?

Thanks for your time and consideration in providing insights on how the US actually reduces its credit market debt as % of GDP over the coming years.

(I am assuming you believe this 376% level is not sustainable in the long term / I do not wish to put words in your mouth / just want to understand your position in this regard).

Thanks.
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