The Keynesian endpoint is when the entirety of government tax revenues has to be used for paying interest on the public debt. At this point a sovereign feels compelled to monetize an exponentially increasing debt load and/or default. It may well be that we’re on the cusp of a multi-decade period of sovereigns reaching this point, hence our recent infographic on the US public debt from 1792 to the present day. Here we’ll switch our attention to Europe. See below for an infographic comparing critical metrics (debt-to-revenue and interest expense as % revenue) in EU member states, Iceland, Norway and Switzerland.
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