Research

Globally, we see that government deficits and debts have reached levels where it is irresponsible to increase them further. This threshold was actually reached long ago, but as long as interest rates were around 0%, there was no urgent problem. However, interest rates have now risen, making interest payments often the largest expenditure or at least threatening to become so soon. This is happening just as ageing populations are beginning to take effect, leading to much higher government spending on pensions, healthcare, and elderly care. Without policy changes, this will lead to a rapid further increase in interest payments, causing government finances to eventually become completely unsustainable…