We are presently financing the deficit by borrowing from China (largely). The US didn’t borrow the money it spent on WWII, except you contemplate it a loan from the US to the US. People freak out if the hear the US is printing cash not backed by gold in Fort Knox. But WWII was financed entirely with paper money printed out of skinny air, and it didn’t end in hyperinflation. Quite the other – the two a long time following World War Two had been arguably the very best 20 years for the center class in the historical past of the USA.
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