By Kelly Bogdanova and Frederique Carrier, includes “All of these figures actually understate the situation. Obligations are higher when off-balance sheet debts, in the form of future social promises, are taken into account. … The more that debt and debt-to-GDP mount over the longer term, the more governments and taxpayers will enter uncharted territory. It’s unclear to us where the tipping point is between manageable and unmanageable debt loads. So far, markets are behaving as though any tipping point is a long way from here.”
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