🥋 Hydr₳

What if the biggest clue to the next financial crisis is sitting in the last 100 years of history? I’ve been comparing how governments dealt with major financial crises, what worked and what happened to their debt afterwards.. 1929–1933: The Great Depression. US government debt rose from 16% to 38% of GDP. Banks collapsed, and the money supply shrank by nearly 30%. Emergency banking reforms helped stabilise the system, but the recovery took years. 1945–1950: After WWII, US debt was around 119% of GDP at its peak. Governments kept borrowing costs low, while economic growth and inflation helped reduce the debt burden. By 1950, US debt had fallen to roughly 94% of GDP. 2007–2009: The financial crisis. US government debt rose from around 63% to 83% of GDP. Governments rescued banks, cut interest rates and began buying bonds. The financial system survived, but public debt increased. 2026: Now look at where we are. Global government debt was already nearly 94% of world GDP in 2025, and the IMF projects 100% by 2029. Government interest payments have risen from around 2% to nearly 3% of global GDP in just 4 years. Between Feb and Sep 2026, average G7 government bond yields rose by more than 1% point. Now, these are different economies and different crises, so the % aren’t directly comparable. However, there’s a pattern worth examining. In the 1930s, governments initially struggled to stop the collapse. After WWII, debt fell as economies grew. In 2008, governments stepped in to rescue the financial system, but debt rose. Today, governments are already carrying enormous debt while the cost of borrowing is increasing. So here’s the question..if another major financial crisis arrives, how much room do governments actually have to rescue the system without adding even more debt? Most likely their response would be reactive making money cheaper and increasing liquidity. In such scenario could Bitcoin become one of the assets that benefits? That’s the historical connection I think deserves much more attention.