And in the mean time, personal savings absolutely plummeted.

What we're seeing is an uptake in the savings rate.

This is something I call the 50 20 paradox.

He's given a control that allows him to adjust his savings rate.

A 1 0 U.S. Savings Bond.

So this is a timely problem.

But the remainder is savings.

It's not even sustainable economically.

And slowly, slowly we're bringing it up to a moderate savings rate.

let's look back at that OECD graph that we were talking about.

Holding down the right flank of the OECD, all the way on the other side, is Greece.

There was nothing to buy, unless you wanted to buy some rivets. Right?

Do you know what this was right here?

Savings bonds.

It should be noted, of course, that the United States and the U.K. are the next in line.

They're savings bonds.

It's not just numbers on a piece of paper.

Pulling money out of the house as fast as they could, putting money on credit cards as fast as they could.

But there's another group of people who were more than offsetting that by taking credit.

What is the average difference here?

Now all of a sudden, the credit crisis hit and all this credit disappears.

Now even after all of this granular level of control, do futureless language speakers seem to save more?

What's this building?

Save your dollars bills, yo!

In fact, if anything, they were borrowing against those things, especially home equity.

If you actually go to 2007, the average American consumed more than we produced.

So we're starting to pay for things with money that we have.

And what I'm going to talk about today is Save More Tomorrow.

When people can't borrow anymore, the savings rate has to go to 10 because most of this is just from people taking on more credit.

The older face is miserable.

So you essentially have forced savings.

Because I kind of view that as a reference point.

Until we get to this point right here, where everything starts blowing up.

Let me just put it into my mattress.

Well, think about smoking, for example.

I still have some money saved! I'm prepared for hard times.

Keep something for a rainy day.

You'd rent a smaller home.

Where maybe I saved 5, but someone else borrowed 5.

So all the way over on the left of this graph, what you see is many OECD countries saving over a quarter of their GDP every year, and some OECD countries saving over a third of their GDP per year.

In an emergency you can fall back on your savings.

Put by money for the future.

I don't dividend it out to the shareholders. I just keep that.

What you see is that these bars are systematically taller and systematically shifted to the left compared to these bars which are the members of the OECD that speak futured languages.

In an emergency you can fall back on your savings.