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Tuesday, June 19, 2012

''By Incentivizing Debt, We’ve Guaranteed Debt-Serfdom and Stagnation''

From Financial Sense
By Charles Hugh Smith

''Incentivize debt and you create multiple overlapping death spirals. We are seeing the death-spirals play out in a fractal manner, from households to nations to entire regions. High debt levels lead to high interest payments which lead to low investment and savings rates which lead to lower productivity which leads to stagnation of income, consumption and investment: in other words, a death spiral.''

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