Is this how the great international borrowing spree ends?

France’s mounting national debt, now exceeding 120% of its GDP, has triggered significant concern among global investors, raising fears of a potential sovereign debt crisis. While historically viewed as fiscally responsible, France is losing market confidence due to political gridlock and the absence of a credible plan to balance its budget. Economists Thomas Philippon and Olivier Blanchard warn that nations enter a "danger zone" when investor faith erodes, creating a self-reinforcing "doom loop" where rising interest rates make debt repayment increasingly difficult. Although France’s situation differs from Greece’s past struggles, the loss of market trust remains a critical indicator of instability. This fiscal trajectory serves as a cautionary tale for other major economies, including the United States, which continues to rely on international credibility to sustain its own record-breaking levels of borrowing and deficit spending.