The Wall Street Journal: A quote from 1993
"History showsthat once nominal growth slows in a heavily indebted economy, there canbe no recovery until the excess debt is eliminated. Political effortsto expand debt do nothing to lift the burden of debt service, which isthe cause of slow growth and faltering incomes in the first place.
"Toomany people have become complacent about deflation. But watch out. Debthas grown too large to be sustained out of cash flow. As soon as thebalance sheet is depleted, a deeper crisis of asset liquidation willcatch the world by surprise."
Source: James Dale Davidson, The Wall Street Journal, 1993
"The leading edge that is really telling us what is going on is the government bond market and property prices."
