Debt Levels Suggest a Major Contraction is Ahead

Deflation nearly always manifests as a contraction in the amount of outstanding debt.

The tipping point occurs when the amount of debt becomes unsustainable.

With that in mind, read this excerpt from a May 21 Marketwatch article titled, "U.S. households now have as much debt as they had in 2008":

After months of speculation, it happened: Household debt levels in the U.S. have surpassed their 2008 peak.
The New York Federal Reserve released a new report [on May 17] that showed U.S. collective household debt balances totaled $12.73 trillion in March 2017, surpassing the 2008 peak of $12.68 trillion.
This isn’t the first debt milestone Americans have hit recently.
The Federal Reserve announced in April that the U.S. had $1 trillion in credit-card debt. (Consumers hit that number previously in the fourth quarter of 2016, but had eased on their use of revolving credit during January 2017. The Fed announcement showed revolving consumer credit hit more than $1 trillion once again in February 2017.)

Also, EWI's May 2017 European Financial Forecast noted:

According to the UK Financial Conduct Authority (FCA), about 3.3 million Brits are trapped in “persistent debt,” meaning their minimum repayments are too small to outweigh interest and other charges.

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