World War I was a watershed that flipped the US from the world's great borrower to the world's great creditor, so after the war every belligerent nation owed money largely to the United States while having little productive capacity left to repay it, creating a structurally disadvantageous global debt configuration.

causalpending

Speaker

Eric Rauchway

Evidence Quote

World War I is a watershed in the history of international capital flows... before World War I, the United States is the world's great borrower. After World War I, the United States is the world's great creditor.

Source

Eric Rauchway on the Great Depression and the New Deal 12/01/2008EconTalk
Created: 6/17/2026, 10:09:28 AM

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