Historical Look at Debt

Reinhart and Rogoff wrote a book called "This Time Is Different". They have cataloged in this book over 250 natural crises in 66 countries over a period of 800 years. A common denominator in all of these crises is the presence of too much debt.

They suggest that the longer we put off the pain, the worse the total pain will be. And of course, the key for us is the process of deleveraging.

Debt runs in all aspects of our society. However, gevernment debt is unusually large.

-Jim