from Zero Hedge
Just two weeks after the ‘Back To The Future’-Day hoax, Citi’s Global Head of International Economics Nathan Sheets, provides an excellent compare and contrast discussion of the state of the US post-WWII in relation to the current world – and he is less than sanguine at the prospects.
Nathan Sheets, Citi:
In the years after World War II, the United States achieved a dramatic reduction in the level of the federal government’s debt. The costs of financing the military had pushed the debt up sharply, from around 40 percent of GDP before the War to a peak of nearly 110 percent of GDP as the War ended. But a combination of strong economic growth and remarkably disciplined fiscal policies, as well as elements of socalled financial repression, brought the debt below 50 percent of GDP by the late 1950s. This remarkable episode provides some important perspectives for us today as the debt is again on a high and rising trajectory.