Do you if the amount of consumer debt is declining? Credit Card debt has declined but I think overall consumer debt reported by Experian has increased about 6% in 2020. If the debt is increasing & we assume it is going to paid back w interest then we continue to pull more future demand forward & slow growth & inflation. In this view held by Irving Fisher & Lacy Hunt, the more debt we pile on the lower future growth & inflation will be. This is an empirical observation of over 200 years of data. Now if there is a default on the debt the you will quickly get inflation as the money supply will fill the hole left by the default.
Do you if the amount of consumer debt is declining? Credit Card debt has declined but I think overall consumer debt reported by Experian has increased about 6% in 2020. If the debt is increasing & we assume it is going to paid back w interest then we continue to pull more future demand forward & slow growth & inflation. In this view held by Irving Fisher & Lacy Hunt, the more debt we pile on the lower future growth & inflation will be. This is an empirical observation of over 200 years of data. Now if there is a default on the debt the you will quickly get inflation as the money supply will fill the hole left by the default.