Part 2/9:
Historically, from 1940 through 1980, governments were able to deleverage and reduce their high debt-to-GDP ratios following World War II. Inversely, the years leading up to 2020 saw sustained borrowing by the U.S. government, fueled by a steady decline in interest rates and inflation. However, this trend faced a pivotal change in 2020 when interest rates hit rock bottom, and inflation surged.