Debt markets were a lot different in WWII, currently key rates are at 0%, most government debts are being taken on by central banks. Deleveraging isn&#x27;t a good option, because it can cause deflation...however, if we look at markets like Japan, their increased debt burden and NIRP policy, is effecting currency markets heavily. There is no good solution. Taking on more debt can push the string, and we can pray for economic growth to cover it, we can deleverage and cause a depression, or we can try to keep at near current levels of GDP. There is no good solution.<p>Given that there is no good solution, I feel policy makers are much more prone to making massive mistakes that cause asset misallocation which will force deleveraging in private markets when that pops.