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Bill Gross, the founder and Chief Investment Officer for the world's largest bond fund echoes Paul Krugman. He argues that our economic problem is inadequate global demand. The debt problem is a result of the use of debt in response to inadequate demand. He provides some reasons for the fall in demand but he does not get into this in much depth. Our focus, however, should be on understanding that problem and not on reducing demand by cuts in government spending.
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