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To: GraceZ who wrote (108888)6/14/2001 9:40:05 PM
From: Mark Adams  Read Replies (2) | Respond to of 436258
 
Thanks for your insight. I've had it in my head that the debt was someone's asset all along. Yet I was still willing to try and refute the assertion that GDP growth has been financed via additional debt with decreasing efficacy.

All I've come up with since that post are these two ideas;

Would it not be more likely that GDP growth drives Debt?

GDP=GDP+(NetChangeInDebt+Investment-Depreciation)*ProductivityofCapital

On initial inspection, Corporate Investment has outpaced Depreciation, and Debt has increased. It's a change for the worse in the productivity of capital that would appear to be the claim. We know thats true for many of the dot.coms, but that's ancedotal and a relative small part of the economy.