GR-NEAM Reflections: 07/01/2012 - Long Journey, Map Provided

Debt reduction in advanced economies will persist for years, but is underway in a number of cases. The latest data on the U.S. household sector confirms our long standing assessment that growth is essential to reducing debt loads relative to incomes. Most of the delevering of the U.S. household sector is occurring through growth of the denominator in the debt to GDP ratio, with the numerator--actual debt reduction--playing a minor role.