Karl Denninger, the blogmaster of the Market-Ticker.org site, believes that GDP has actually been dropping and at an accelerating pace. I'm not sure that I agree, but it is worth considering. I think the idea is that GDP should be able to grow without an increase in debt.
The counter-argument, which I am setting forth but not necessarily advocating as a good thing, is that debt can continue to increase forever. As long as the interest is paid it can continue to grow.
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