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Except the WW2 debt was paid in 1945 dollars which are worth a hell of a lot more than 2010 dollars. If you imagine the loans as being in gold (and this might b
by nopassrecover 17y ago
Except the WW2 debt was paid in 1945 dollars which are worth a hell of a lot more than 2010 dollars. If you imagine the loans as being in gold (and this might be a bad example because I don't know how gold has inflated) then they still have to return that amount of gold.
- Skriticos 17y agoIn 1945, 1 troy ounce of gold was worth something in the vicinity of 35 USD.. As of today it's over 1100 USD, and going up really fast. It would have been unfortunate to have it paid back in gold. http://www.nma.org/pdf/gold/his_gold_prices.pdf http://www.nma.org/pdf/gold/his_gold_prices.pdf Also some figures for what was mentioned in the article: http://mises.org/markets.asp http://mises.org/markets.asp (the last set of diagrams show the national debt figures over 60 years, useful to get an idea)
- lkozma 17y agoSince the debt is in dollars and not in gold, this does not matter. I never heared that national debt would be updated to reflect inflation. And I don't think WW2 debt was ever paid in any dollars. It's interest was paid in 1945 dollars, then in 1946 dollars, etc. What you say about inflation matters only if debt is in a different currency, which was Argentina's case, but not the US.