You show those Yankees!

From the Telegraph: British household debt is highest in history.

British households are now more indebted than those of any other major country in recorded history, it has emerged.

Families in the UK now owe a record 173pc of their incomes in debts, official figures have shown. The ratio of debt to income is higher than any other country in the Group of Seven leading industrialised economies, and is sharply higher than the 129pc of incomes it was five years ago.

Michael Saunders of Citigroup warned that - at 173pc of household incomes - the debt burden is higher even than Japan's when it peaked in 1990, before more than a decade of deflation.

Let us review some basics:

Inflation is the expansion of money and credit. Deflation is the reduction of money and credit.

Can credit expand further in the UK? Possibly but unlikely.

What happens when debt is either paid back, or defaulted upon?

Thank you, that will be all.