Is this how the great international borrowing spree ends?

Rising national debt levels among major economies have reached a critical threshold, with France currently serving as a bellwether for potential fiscal instability. While many nations increased borrowing during the 2008 financial crisis and the COVID-19 pandemic, France’s inability to present a credible path toward budget stabilization has spooked investors. Unlike Greece, which has successfully reduced its debt-to-GDP ratio, France faces a "danger zone" where market skepticism drives up interest rates, creating a self-reinforcing cycle of debt. Experts like Thomas Philippon and Olivier Blanchard note that while debt is not inherently catastrophic, the loss of investor confidence in a government's political will to cut spending or raise taxes can lead to a crisis. This situation mirrors broader fiscal challenges in the United States, where high deficits persist despite the dollar's unique international standing and economic growth.