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Agree, all debt matters as even public debt is going to be repaid or serviced by same individuals. On that measure (total debt) Australia also one of the worst in the world.

I think FRB models published on the internet can be misleading. When a private bank issues a loan, it creates both a new deposit and loan account in equal amounts. Agree. There is only so long that enticing borrowers with lower and lower interest rates can support productive debt growing...

That's the question I'm asking. They are not exactly comparable, but if we consider GDP is the country's income, how high can private debt get relative to that before it is no longer serviceable? As it is we've had to drop rates down to record lows to sustain economic growth under the current...

This discussion was started as a continuation from another: Given that private debt is issued through a bank who creates both the deposit and the loan together, then by your measure net debt would be 0 (as there is private savings in the system to match all debt)? I think that...