Incorrect

Stumbling and Mumbling

This ignores the fact that the public finances are not under the government’s control. Government borrowing is the counterpart of private sector saving (both here and overseas). If the private sector wants to save more, then government must borrow more; the alternative is for it to depress the economy by cutting spending or raising taxes.

No, for the last 40 years recessions in America land wihin two years of a regime change, with only one exception that proves the rule.  Hence, the statement above can not be correct as measured in aggregate statistics over the global economy.  It is mostly a made up piece of crap from basket weavers at MIT.

The actual theory is that, in America, a shock happens, government cannot cover the insurance promises it makes, interest rates run up and the economy crashes.  The result is deeper and deeper crashes until we get a monetary regime change.  One chart, shall we look? OK

Here.  Every friggen statement of mine is fully visible in this chart.  The presidential recession cycle and the growing instability of the deficit.  What ever the basket weavers told you in 1974 has never been true in America.