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All these factors will affect the rate of debt reduction, for better or worse.
"It is pretty daunting," she added, pointing out that, at $33,000 per year, New Hampshire has the highest average rate of debt for graduates in the country.
A falling market could pull down already falling economic growth, or scare away foreign investors, or expose Chinese banks to added loan defaults at a time when they are contending with a high rate of debt.
That rate of debt expansion outpaces every other country in the world and is the result of a plummeting economy, high interest rates and the burden of rescuing Spain's collapsing banks.
Italy's national debt is 1.9 trillion euros (about $2.7 trillion), or 120 percent of gross domestic product — the highest rate of debt in the 17-member euro zone after Greece.
Mr. Malloy and Democratic leaders said their plan spread the fiscal pain around, with both tax increases and spending cuts, and tried to put government on a sustainable path in a state with the highest rate of debt per capita in the country.
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For some, higher rates of debt are appropriate in order to smooth consumption and, ultimately, increase welfare.(Photo credit: AP).
"Jeanne doesn't just know that Durham is in Strafford County, she understands that students there are graduating with one of the highest rates of debt in the country".
This may partly explain the higher rates of debt we see today.Telling students to incur credit card-debt may seem foolish (and with their high interest rates it's often not great advice).
It is also taking place in global rating of debt securities, where the strength of Moody's and Standard & Poor's has made it hard for European-based and Asian-based entrants to prosper.
Thus highly indebted households find it harder to "smooth" their consumption and similarly burdened firms find it harder to invest when their revenues dip.To assess the threat debt poses to economic stability, Douglas Sutherland and Peter Hoeller of the OECD have calculated trend rates of debt to GDP, smoothing out the cyclical ups and downs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com