css1971

What deleveraging? While it's true household debt dropped slightly last quarter (but see), overall debt continued to grow. Unfortunately, the only way to climb out of a debt-induced depression is to pay down debt - or to write it off.

"the only way to climb out of a debt-induced depression is to pay down debt"

What?

If you pay down debt, you destroy credit and thereby make the recession/depression worse. You get out by writing off debt (bankruptcy) or by printing (not borrowing) money.

You can try "growing" out, but that's just borrowing more money into existence so the debt just increases.