Chart du Jour: What deleveraging?
The charts below, courtesy of Bianco Research (via The Big Picture), show U.S. private, government and total debt in both nominal terms (top graph) and as a percentage of GDP (bottom graph). In short, the deleveraging process still has a long way, and could cause a headwind for economic growth for many years to come. (Please note that the right-hand axis on the bottom chart should read “% of GDP” instead of “Trillions of dollars”.)
Click on the images below for larger charts.
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