Debt Deflation is Happening

This makes up about 90% of all United States' debt. The only reason people haven't noticed any of it is because of the increase in government debt, which will be defaulted on if our leaders have any sense. The government debt line includes state and local debts as well.

The household debts will decline rapidly in the coming years, especially as more people either walk away from their homes or demand that the banks prove that they own the loan. The corporate debts will decrease as well, since many banks will be weary of loaning money to business soon.

What this means is that if you have any outstanding debt, you need to pay it off real soon in any way you can or risk being in over your head.