Debt Economy vs. Real EconomyÃ¢â¬Â¦no so differentÃ¢â¬Â¦Ã¢â¬Â¦ I will try to keep this simple. And pardon my bad English. The US economy has relied on huge debt to fuel its massive economic growth. Since 1971 there is virtually no restrain on the amount of money and the types of moneys that can circulate. As most of us know from (mostly) Austrian Economics, such an undertaking will someday come to a painful end. I usually hear people talking about the finance economy vs. the real economy in both positive and negative aspects. However, I believe that our real productive economy has been already consumed and corrupted by 40 years of debt driven Ã¢â¬ÅgrowthÃ¢â¬Â. I believe that our productive economy adapted itself to high turnover of consumerism fueled by debt. In my home country, Cuba, we still have American cars from 1957, 1954, 1945, running just fine. Today NO American car will make alive after 15 yrs. NOTHING IS BUILD TO LAST ANYMORE. What America produces no longer validates its level of consumption. I think this system is quickly coming to an end. Without consumer credit, the real economy will undertake a painful period of adjustment. The burst of the housing bubble has help burst the debt bubble. Also Ã¢â¬ÅCheapÃ¢â¬Â Chinese products are now proving to be very costly to the working American. It will take a while for the necessary adjustment to take place and they are likely to be more painful and lasting due to the fiscal and monetary steps of the federal government. Thank you.