Current debates about economic crises typically focus on the role that public debt and debt-fueled public spending play in economic growth. This illuminating and provocative work shows that it is the rapid expansion of private rather than public debt that constrains growth and sparks economic calamities like the financial crisis of 2008.
Relying on the findings of a team of economists, credit expert Richard Vague argues that the Great Depression of the 1930s, the economic collapse of the past decade, and many other sharp downturns around the world were all preceded by a spike in privately held debt. Vague presents an algorithm for predicting crises and argues that China may soon face disaster. Since American debt levels have not declined significantly since 2008, Vague believes that economic growth in the United States will suffer unless banks embrace a policy of debt restructuring.
All informed citizens, but especially those interested in economic policy and history, will want to contend with Vague’s distressing arguments and evidence.
he skillfully walks the reader through complex subject matter in easy to understand language The essential first step in any recovery begins with the correct diagnosis. Mr. Vague’s book does just that with his thoughtful, informative, and eye-opening approach. By turning closely held economic orthodoxy on it’s head, and with the help of well crafted visual aides, he skillfully walks the reader through complex subject matter in easy to understand language. Using the author’s clear evidence of how boom and bust financial cycles are created, it’s time our leaders base policy decisions on…
In this incisive and insightful book, Richard Vague lays … In this incisive and insightful book, Richard Vague lays out an invaluable early warning system for identifying major financial crises and explains why the rapid expansion of private credit almost always leads to serious economic downturns. As importantly, he explains how the overhang of debt left after a crisis can weigh on economic growth for years to come and why therefore a program of debt restrucuring must be a centerpiece of any recovery program following a financial crisis. Sherle R…
An important perspective on global economics that demands close scrutiny … 0