[Former Proud Canadian]

The disaster begins when investors refuse to buy long term government bonds at negative rates, which just happened in Japan. They can't pay off maturing bonds without selling new ones. They can't finance their deficit withing selling new bonds.

Their remaining options are limited and not very good. They include: default, (hyper)inflation, devaluation of the currency, or crushing tax increases.

[sparklite2]

“Their remaining options are limited and not very good. They include: default, (hyper)inflation, devaluation of the currency, or crushing tax increases.’

Or sharply curtailing government.

[PeterPrinciple]

Their remaining options are limited and not very good. They include: default, (hyper)inflation, devaluation of the currency, or crushing tax increases.

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or kaput, like the USSR.........................