The Debt, Deflation and Default Spiral: Great Recession in Depth

While accumulating debt seems to be no problem for the capitalist state, there is a real problem with debt in the financial economy. In Part III of his article on Understanding Great Recessions, Jack Rasmus shows how debt leads to financial deflation and then defaults by banks. But in the second round of debt, the deflation involves real goods and services, and that’s where the trouble really begins.

Read at Jack Rasmus

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