Economic stability is under threat as nations increasingly rely on debt to fuel growth. Recent data from the U.S. reveals a troubling trend: each unit of productivity gain now requires exponentially more debt, creating an unsustainable economic model. This pattern isn't unique to America—it's mirrored in Keynesian economies worldwide, particularly in the Eurozone.
The EU's ambitious plans, spearheaded by figures like Mario Draghi, to inject €800 billion annually into the economy, highlight a critical issue. As government spending swells, private sector productivity growth stagnates. This imbalance raises serious questions about the long-term viability of debt-driven economic policies.
Graphic: James Lavish on 'X'
Tension building between two of my favorite adages:
  • Unsustainable things eventually come to an end.
  • The market can stay irrational longer than you can stay solvent.
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it's Keynesian musical chairs.
us is already using usdt to absorb its shitty t bills and at some point, countries will turn to USD as a reserve asset, maybe even backing the USD, then we'll see some real game theory in action
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America does not stand alone in this grand endeavor.

Government debt at the end of the first quarter of 2024 by Member State

The highest ratios of government debt to GDP at the end of the first quarter of 2024 were recorded in Greece (159.8%), Italy (137.7%), France (110.8%), Spain (108.9%), Belgium (108.2%) and Portugal (100.4%), and the lowest were recorded in Bulgaria (22.6%), Estonia (23.6%) and Luxembourg (27.2%).
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