To my knowledge, no country, in the history of humankind, has "come back" from a national debt over 100% of GDP. It just isn't possible to pay it down, no matter how much you raise taxes nor practice austerity. If you KNOW this system is going to have to massively shortchange its citizens and debt holders, one way or another, why do we persist in "hoping" or, even worse, doubling down on old ways of doing things?
http://www.zerohedge.com/markets/quinn-us-banking-system-safe-15-years-later
Excerpt:
"The question now is whether the current situation is better or worse than the situation we faced in 2008. There are some factual items which may help in assessing where we are. In August 2008 the national debt was $9.5 trillion (67% of GDP). Today it is $31.5 trillion (130% of GDP). Total household debt was $12 trillion in 2008 and stands at $17 trillion today. The Fed’s balance sheet was $900 billion in 2008 and now stands at $8.3 trillion. Inflation was at a 17 year high in August 2008 at 5.9% and stands at 6.0% today. GDP was growing at 3.2% in 2008, versus 2.7% today. An impartial observer would have to conclude our economic situation is far worse than 2008."
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