All around the world governments are talking about cutting spending and reducing debt-to-GDP to more sustainable levels.
But it’s actually not happening at all.
As this chart from the OECD makes clear, basically every developed country, including all the European countries embracing “austerity” are set to see their debt-to-GDP rise over the next few years.
At best, maybe some are reducing the rate at which debt-to-GDP grows, but none are actually improving the situation. And to be clear, they probably shouldn’t be, since the private sector needs stimulus and further deleveraging.