After the war ended in 1945, Germany’s debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece. Instead, both of our states employed the second method with the three components that I mentioned, including debt relief. Think about the London Debt Agreement of 1953, where 60% of German foreign debt was cancelled and its internal debts were restructured

Piketty: “Germany Has Never Repaid Its Debts; It Has No Standing To Lecture Other Nations” | Zero Hedge (via johnborthwick)

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Founder, Work Futures. Editor, GigaOm. My obsession is the ecology of work, and the anthropology of the future.

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