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United States

In the United States, the ratio of public debt to GDP of 117% fell in 1945 to 35% in 1973. This impressive debt reduction of the United States occurred in the face of economic growth, increasing inflation and heavily regulated financial markets. While the absolute level of debt of the United States of America changed little, the real interest rate in the United States in the half of all years between 1945 and 1980 was negative. On average a reduction of public debt in the amount of 3% was achieved thus p.a. p.a. up to 4%. That emerges from an examination of the Economist Carmen M.

Reinhart and M. Belen Sbrancia from the year 2011. The study is titled “the liquidation of government debt” and was made for the National Bureau of economic research in the United States. (Similarly see: Republic Services). “The successful debt reduction of the United States of America after 1945 through financial repression is seemingly an enticing model for domestic politicians and central bankers”, says Christoph Marloh, CEO of the real estate 24 “silent expropriation of ownership of money is politically advantageous when compared with direct tax increases. Investors and savers answer increasingly personal counter strategies on the basis of return-bearing assets. Residential real estate investments have increased as economic activity stable material assets in importance won”. Information about Christoph Marloh, refer here.

Despite the escalating sovereign debt crisis in the euro area, the plan presented by Commissioner Barnier in July 2011 the new prudential rules for financial institutions (Basel III) foresees that State title will still be excluded from the capital. An investment in real assets recommends also Bill Gross, founder and Managing Director of PIMCO, the best-selling American bond investors. In his August 2011 investment Outlook he called expressis verbis financial repression, inflation and currency depreciation options of the U.S. Government for dealing with the shortcomings of the State.