Right here’re CDS swaps and spreads vis a vis Germany over the previous yr:
The credit score rankings have been secure for years…till at present. Right here’s S&P’s:
Right here’s the fiscal state of affairs, as summarized by the funds steadiness as share of GDP.
The six % of GDP deficit is smaller than in 2020, and is corresponding to that within the US. Nonetheless, the US points the world’s international forex, so is endowed with exorbitant privilege. Furthermore, the funds is the circulation, and doesn’t present the outlook for debt, given the pressures coming from pension spending over time. So whereas debt to GDP has fallen since 2020, it’s going to reverse course sooner or later (that is the place the significance of reviving development development comes into play).
