James:
I missed this news story when it came out last fall: Germany finished paying off its WWI war reparations on October 3, 2010. That was 92 years after the Treaty of Versailles set the amount at 83% of Germany’s GDP. Funding these payments was largely responsible for the economic collapse of the Weimar Republic (with its hyperinflation).
What will it take to pay back the debt we’ve imposed on ourselves? Depending on how you count it, the current government debt is between 14.2 Trillion (Treasury number) and 62 Trillion (when you include liabilities for Fannie/Freddie and current-value obligations for Social Security, Medicare and Medicaid). These are 95% and 413% of our current $15 Trillion GDP.
I’m bailing out of the US currency as fast as possible! – Tony B.
JWR Replies: You are taking a logical course of action. Get out of U.S. Dollars and into practical tangibles, as soon as possible. Please don’t consider foreign currencies a safe haven. They’re all in a race to the bottom.