Your exactly right... savings and debt are always exactly balances with the small exception of the gold that is still sitting on the Federal Reserves balanace s

Your exactly right... savings and debt are always exactly balances with the small exception of the gold that is still sitting on the Federal Reserves balanace sheet. Currently the savings and debt dynamics are skewed with a large amount of savings being held or controlled by very high net worth individuals and the debt being held widely. These situations have always in the past resulted in deflationary periods like we saw in the 1890's 1929 and recently in 2008. The current economy is a lot like the old company store in mining towns where everyone is in debt to the company store and the only things that you can buy are what the company store sells. Is it any wonder that the hottest consumption items are the sectors of the economy that are financed?