The debt supercycle has reached its final leg
https://www.reuters.com/commentary/breakingviews/debt-supercycle-has-reached-its-final-leg-2025-07-25
Edward Chancellor:
As the cycle nears its end, a country is typically beset by chronic fiscal deficits. Low domestic savings and current account deficits render it dependent on foreign lenders. As lenders become wary, the average maturity of the public debt shortens. The central bank finds it impossible to set interest rates at the level which balances the needs of both creditors and borrowers. Once interest rates rise, governments’ debt servicing costs become increasingly onerous. Government finances come to resemble a Ponzi scheme, with new debt being issued to service old borrowing. That pretty much describes the situation which several advanced economies, including Britain, France and the United States, find themselves in today.
Inflation risks are taking Britain towards the debt-crisis cliff edge
https://www.telegraph.co.uk/business/2025/07/20/inflation-risks-are-taking-britain-towards-the-debt-crisis/
As interest payments pile up, our public finances resemble a Ponzi scheme.
https://www.reuters.com/commentary/breakingviews/debt-supercycle-has-reached-its-final-leg-2025-07-25
Edward Chancellor:
As the cycle nears its end, a country is typically beset by chronic fiscal deficits. Low domestic savings and current account deficits render it dependent on foreign lenders. As lenders become wary, the average maturity of the public debt shortens. The central bank finds it impossible to set interest rates at the level which balances the needs of both creditors and borrowers. Once interest rates rise, governments’ debt servicing costs become increasingly onerous. Government finances come to resemble a Ponzi scheme, with new debt being issued to service old borrowing. That pretty much describes the situation which several advanced economies, including Britain, France and the United States, find themselves in today.
https://www.telegraph.co.uk/business/2025/07/20/inflation-risks-are-taking-britain-towards-the-debt-crisis/
As interest payments pile up, our public finances resemble a Ponzi scheme.
The bond market maths does not add up for governments
https://www.ft.com/content/22090918-f767-4496-ab9a-d9e92ec6cece
Higher yields look probable, forcing countries to pay more to fund their ever-growing deficits.
https://www.ft.com/content/22090918-f767-4496-ab9a-d9e92ec6cece
Higher yields look probable, forcing countries to pay more to fund their ever-growing deficits.