When debt reaches 100% of GDP it is usually a point of no return. Only one country in the history of the world has survived that much debt. What happens is that spending and interest spiral up to the point where those making the loans realize that the debtor is incapable of paying it back. The currency starts to fall apart fast at 120-130% of GDP, which isn't far away. We are already seeing the inflationary effects of so much debt.
U.S. Debt Now 100% of GDP
U.S. Debt Now 100% of GDP
U.S. Debt Now 100% of GDP
When debt reaches 100% of GDP it is usually a point of no return. Only one country in the history of the world has survived that much debt. What happens is that spending and interest spiral up to the point where those making the loans realize that the debtor is incapable of paying it back. The currency starts to fall apart fast at 120-130% of GDP, which isn't far away. We are already seeing the inflationary effects of so much debt.