The Importance of Private Debt in the Economy

The real cause of this dilemma is the high level of the high quantity side. We've got to get the quantity down, reduce the level of private debt. That will mean then the interest rate doesn't have the prominent impact that it has in the society right now. And what's that debt doing? Pushing up asset prices. If that is not creating anything. Right. So I looked at the Australian, because I was living in Australia when I was doing this work, looking at the Australian data,. It seemed that whenever debt service exceeded 8% of GDP, you'd go into a recession and then when you go into the 4%, you go back into a burn.