Quote:
Originally Posted by Tchocky
Well, the debt/GDP ratio was quite a bit higher during WWII, but it was paid off.
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The economic conditions were much better than they are now and in the future.
Also, the total debts neither at the end of WWI or WWII had blown that much out of proportion, as they are now.
In the years from 1917 to 1919, the US total debt grew from 3.6 billion to 27.5 billion.
In the years from 1941 to 1946, the US total debt grew from 43 billion to 226.5 billion.
When the Gold-Dollar-link was given up in 1971, the US total debts reached 424 billion.
At the end of the millenia, the US total debt was around 5.6
trillion.
Currently the US debts are >
US debt clocks < (around 14
trillion). Debt clock shows the US debts almost equals gross domestic product.
A general trend for expoloding national debts can be seen in Germany, too.
Not ethat the graph ends 2008. German debts at the end of 2010 had jumped from 1.5 trillion to 1.8 trillion. And the future, due to the Euro, holds grim perspectives.
When states need to make new debts just to pay interests for existing debts, then their total debts necessarily are constantly climbing. No pirvate business company with a sense for reality and responsibility would do that, because it knows that total bancruptcy lies at the end of the road - inevitably.
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