Outer Limits of Debt

"You can run but you can't hide, kid."
--Jester (Top Gun)

Our problem is excessive debt. Current incomes are becoming incapable of servicing it. Over the past couple of years, we have seen a large amount of debt transferred from private to public hands--essentially the socialization of risk.

But governments were already lugging large amounts of debt. Now, as more debt gets piled on their ledgers, gov'ts appear to be maxing out as well. While Greece has been in the limelight over the past couple of wks, credit spreads are widening across the sovereign spectrum.

Then of course we have 'non-sovereign' government entities such as California that appear to be reaching their debt limits as well.

This Ponzi scheme can only last as long as someone is willing to take on ever increasing liabilities. And who picks up the baton for governments?

If no one is willing, then it's either default or inflate.