{"id":6022,"date":"2012-11-05T19:11:50","date_gmt":"2012-11-06T00:11:50","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=6022"},"modified":"2012-11-05T19:11:50","modified_gmt":"2012-11-06T00:11:50","slug":"explain-the-disease-to-help-us-citizens-ft-com","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/05\/explain-the-disease-to-help-us-citizens-ft-com\/","title":{"rendered":"Explain the disease to help US citizens &#8211; FT.com"},"content":{"rendered":"<p>This must-read opinion by Richard Koo explains the impact US private sector saving &#8212; a staggering 8 per cent of gross domestic product &#8212; has on the US economy.<\/p>\n<blockquote><p>&#8220;&#8230;.. if left unattended, the economy will continuously lose aggregate demand equivalent to the unborrowed savings. In other words, even though repairing balance sheets is the right and responsible thing to do, if everyone tries to do it at the same time a deflationary spiral will result. It was such a deflationary spiral that cost the US 46 per cent of its GDP from 1929 to 1933.&#8221;<\/p><\/blockquote>\n<p>via <a href='http:\/\/www.ft.com\/intl\/cms\/s\/0\/b1dfd2f0-243e-11e2-94d0-00144feabdc0.html#axzz2BOcIXuEP'>Explain the disease to help US citizens &#8211; FT.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This must-read opinion by Richard Koo explains the impact US private sector saving &#8212; a staggering 8 per cent of gross domestic product &#8212; has on the US economy. &#8220;&#8230;.. if left unattended, the economy will continuously lose aggregate demand equivalent to the unborrowed savings. In other words, even though repairing balance sheets is the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/05\/explain-the-disease-to-help-us-citizens-ft-com\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Explain the disease to help US citizens &#8211; FT.com&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,34],"tags":[971,992,1524,3042],"class_list":["post-6022","post","type-post","status-publish","format-standard","hentry","category-debt-levels","category-us-canada-countries-regions","tag-debt-repayment","tag-deflationary-spiral","tag-gdp","tag-savings"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Explain the disease to help US citizens - FT.com - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Explain the disease to help US citizens - FT.com - the patient investor\" \/>\n<meta property=\"og:description\" content=\"This must-read opinion by Richard Koo explains the impact US private sector saving &#8212; a staggering 8 per cent of gross domestic product &#8212; has on the US economy. &#8220;&#8230;.. if left unattended, the economy will continuously lose aggregate demand equivalent to the unborrowed savings. In other words, even though repairing balance sheets is the &hellip; Continue reading &quot;Explain the disease to help US citizens &#8211; FT.com&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/05\/explain-the-disease-to-help-us-citizens-ft-com\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2012-11-06T00:11:50+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Explain the disease to help US citizens &#8211; FT.com\",\"datePublished\":\"2012-11-06T00:11:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/\"},\"wordCount\":112,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"debt repayment\",\"deflationary spiral\",\"GDP\",\"Savings\"],\"articleSection\":[\"Debt Levels\",\"US &amp; Canada\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/\",\"name\":\"Explain the disease to help US citizens - FT.com - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2012-11-06T00:11:50+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/11\\\/05\\\/explain-the-disease-to-help-us-citizens-ft-com\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Explain the disease to help US citizens &#8211; FT.com\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\\\/2009 and 2020 bear markets well ahead of actual events. 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So far the global economy has not responded to various rescue plans, with GDP slowing and national debt rising across a whole slew of economies.Before we look\u2026","rel":"","context":"In &quot;The Big Picture&quot;","block_context":{"text":"The Big Picture","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/the-big-picture\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6377,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/12\/05\/how-cancelling-central-banks-holdings-of-government-debt-could-be-a-useful-thing-ft-alphaville\/","url_meta":{"origin":6022,"position":1},"title":"How cancelling central banks\u2019 holdings of government debt could be a useful thing &#124; FT Alphaville","author":"Colin Twiggs","date":"December 5, 2012","format":false,"excerpt":"FT's Kate Mackenzie writes: Morgan Stanley cross-asset strategist Gerard Minack says the remarkable thing about developed economy deleveraging is how little of it has happened: The credit super-cycle ended four years ago, but leverage has hardly fallen in major economies: debt-to-GDP ratios remain historically high. Minack says the problem is\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3904,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/03\/21\/us-public-debt-growing-at-unsustainable-rate\/","url_meta":{"origin":6022,"position":2},"title":"US public debt growing at unsustainable rate","author":"Colin Twiggs","date":"March 21, 2012","format":false,"excerpt":"We often blame Fed monetary policy for the GFC, with interest rates at exceptionally low levels leading to \"Greenspan's bubble.\" Treasury was just as culpable, however, with the massive 2004-2005 surge in public debt flooding the market with liquidity. The repeat in 2008-2011 was more justifiable: the spike in public\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41317,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/03\/20\/why-hold-gold\/","url_meta":{"origin":6022,"position":3},"title":"Why Hold Gold?","author":"Colin Twiggs","date":"March 20, 2023","format":false,"excerpt":"Interesting interview with Dr Marc Faber last week: https:\/\/youtu.be\/sYnZJWdHRdY He makes a good point about holding Gold as an investment. Most investors hold Gold as a hedge against inflation. The Dollar has lost more than 90% of its purchasing power since 1960 whereas Gold has gained 408% in real terms\u2026","rel":"","context":"In &quot;Gold &amp; Precious Metals&quot;","block_context":{"text":"Gold &amp; Precious Metals","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/gold-precious-metals\/"},"img":{"alt_text":"CPI Purchasing Power","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-20-cpi-pp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-20-cpi-pp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-20-cpi-pp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":7100,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/20\/unintended-consequences-rewarding-failure\/","url_meta":{"origin":6022,"position":4},"title":"Unintended consequences: Rewarding failure","author":"ColinTwiggs","date":"March 20, 2013","format":false,"excerpt":"Robert Shiller summarizes the arguments for raising taxes and increasing government spending at Project Syndicate: ......while that [austerity] approach to debt works well for a single household in trouble, it does not work well for an entire economy, for the spending cuts only worsen the problem. This is the paradox\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7632,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/05\/01\/weak-dollar-outlook\/","url_meta":{"origin":6022,"position":5},"title":"Weaker Dollar Outlook","author":"ColinTwiggs","date":"May 1, 2013","format":false,"excerpt":"Recovery of the Dollar has been overrated. With restrictions on fiscal deficits, it will be difficult to contain deflationary pressures from the Great Credit Contraction which is likely to endure for at least a decade -- following the Great Credit Bubble over the last 40 years. Fed quantitative easing is\u2026","rel":"","context":"In &quot;US &amp; Canada&quot;","block_context":{"text":"US &amp; Canada","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/us-canada-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=6022"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6022\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=6022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=6022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=6022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}