When a country's debt exceeds its GDP by 100%, it's like walking on thin ice. Imagine spending more than you earn, but on a national scale. This imbalance makes economies fragile, as they rely heavily on borrowing. It's a risky game, similar to how #Bitcoin challenges the traditional #USDollar dominance by offering an alternative without national debt issues. Countries deep in debt face higher interest payments, leaving less for essential services. It's a vicious cycle of borrowing more to pay off existing debt, weakening their financial stability. This scenario raises questions about sustainable growth and economic sovereignty, sparking debates on fiscal responsibility versus necessary borrowing. Curious about who's swimming in debt? Here are the top 5 countries by debt-to-GDP ratio: 1. Japan - 257% 2. Greece - 206% 3. Sudan - 196% 4. Eritrea - 175% 5. Cape Verde - 160% Each percentage reflects not just numbers, but a story of economic challenges and resilience. What's your take on managing national debt? #EconomicGrowth #FiscalResponsibility . image

Replies (3)

Thanks. I believe the US debt/gdp ratio is currently around 125%. Historically countries have all defaulted when they exceed 135%. The only exception out of 50 countries, who reached this level, is Japan, who somehow managed to keep things going. The others went into hyperinflation or needed heavy intervention. Like Greece who got heavy support from the EU.
I would say Japan πŸ‡―πŸ‡΅ use the USD to hold things together. The USA can not allow Japan to default because the hold a lot of bonds that they will likely sell fast and could impact πŸ‡ΊπŸ‡Έ? What are your thoughts πŸ’­?
Yes, you’re right about Japan, they use USD as a lifeline. It has worked so far.
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