Slide #6 - Total American debt and national income are on a collision course
Total U.S. debt, which includes federal, state, and local government debt, as well as business debt and household debt and debt of the domestic financial sector, has been rising almost exponentially. At the same time, national income (blue line) has been rising in a linear fashion. Clearly, if these two trends continue, with debt rising so much more rapidly than income, we will see a very rapid rise in bankruptcies, which will in turn trigger still more bankruptcies until finally we enter another deflationary depression akin to the 1930s or perhaps much worse, given the enormous amount of debt in the U.S. economy'which is far greater now than in the 1930s.