Snowden: Time to buy gilts as financial repression kicks in

In December 2009, an economic paper called Growth in a Time of Debt was published by Reinhart & Rogoff.

It has now been widely read and quoted due to the accuracy of its conclusion. Simply put, countries with large national debt burdens typically grow slowly. Nearly two years later, this is exactly what we are experiencing in the Western world. In March this year, co-author Carmen Reinhart co-wrote another paper titled The Liquidation of Government Debt. Since publication, markets appear to have embraced many of its conclusions. The last time the Western world faced similar economic conditions of high national debt and low growth was the period after World War II. From 1945 to 1980...