Staving off the Millennium
I really thought we were top of the list. Denmark eh?
The whole system is designed to make us consume and get further in debt.
But, household gross debt is neither here nor there, is it? What matters is household net debt, ie, net of gross assets held by the household sector.In many countries the position is reversed from what is portrayed in this chart as households from some of the same countries shown here hold spectacularly high gross assets. In Italy gross assets are at least six times as large as gross liabilities.
Italy comes away from this comparison very well, HG. And whatever one's assets, the relationship between debts and income affect disposable income and therefore the potential for economic growth; if interest rates were not so absurdly low, we would now be feeling that truth in spades.
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