Except he posted a chart of PUBLIC debt. Deleveraging happens on the PRIVATE side!
deleveraging doesn't pick sides. debt can be deleveraged, public or private. isn't that the point - that the deleveraging of public debt by governments has pretty serious ramifications?
from the deleveraging link above...
At the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic entity, such as a household or a firm. It is the opposite of leveraging, which is the practice of borrowing money to acquire assets and multiply gains and losses.
At the macro-economic level, deleveraging of an economy refers to the simultaneous reduction of debt levels in multiple sectors, including private sectors and the government sector. It is usually measured as a decline of the total debt to GDP ratio in the national account. The deleveraging of an economy following a financial crisis has significant macro-economic consequences and is often associated with severe recessions.