are the increasingly more frugal US consumer, whose savings rate is likely to increase gradually to the long-term low double digit average,

Repayment of debt seems to get confused with 'savings'. The US consumer will be unlikely to 'save' until he's paid his debts off, and he certainly won't be assisted in this deleveraging process by a rising income as costs get cut further....

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky