Hussman's chart showing the extremely tight correlation between gov» t / household dissaving and corporate profits is perhaps the most compelling chart in finance today. (greenbackd.com)
Governments usually spend more than they receive in revenues, and the fiscal deficit is a measure of this excess, or of government dissaving. (carnegieendowment.org)
External US / UK deficits allowed private sector dissaving, generating a high demand for risky assets (loans to households); and the corresponding net saving in the exporting countries was invested in the US and the UK and enabled the financing of the risky assets — the other side of the coin. (blog.politics.ox.ac.uk)