Your assuming US was paying all of the interest on debt.  They where rolling over principle <i>and interest</i> which causes things to spiral.<p>Also, US had negative inflation in 1955 and overall low rates from 1950-1969.   It only spiked after that.  1974 to 1982 where generally bad.  <a href="http:&#x2F;&#x2F;www.usinflationcalculator.com&#x2F;inflation&#x2F;historical-inflation-rates&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.usinflationcalculator.com&#x2F;inflation&#x2F;historical-in...</a>