The Blue Line is Total Federal Debt (private and public) as a percent of GDP.
The Green Line is fixed at 90% of GDP. The "alleged" cut-off point that suggests if a nations combined government debt exceeds that threshold it will dampen economic growth.
The Red Line is a line you NEVER/RARELY see inserted into the argument. It represents Total Private Debt (mine and yours and a few of our Wall Street/Corporate friends) as a percent of GDP.
Not to put words into the mouth of The New Arthurian, but I believe he is suggesting we are focused too much on dancing around the mouse in the room (the Green Line) and are not so much on the elephant sashaying behind out collective backs.
I am a terrible dancer, but I know a Two-Stepping Elephant when I see it.
|Source: The New Arthurian Economics|