Everybody knows that GWB made debts like no president before him – as you can see to the right. War spending – to get what? To bring Osama Bin Laden to justice? A bullet would have been cheaper.
http://www.nytimes.com/2009/07/14/us/14intel.html
I think Mr. Greenspan has given us the real answer to that already.
http://www.timesonline.co.uk/tol/news/world/article2461214.ece
But what spawned the early 80's hike in debt? Oil again, I think:
Quote: Saudis flood market with inexpensive oil in 1981, forcing unprecedented price cuts by OPEC members.
http://en.wikipedia.org/wiki/1980-1989_world_oil_market_chronology
The American economy is addicted to oil, and until that changes, foreign policy will just follow meekly.
At the end of that 'rally' of debt, the Soviet Union was on its knees, and the Berlin Wall came tumbling down.
They couldn't keep up the Arms Race, obviously.