"The level of public debt in many industrial countries is on an unsustainable path.  Current budget deficits, partly cyclical but also swollen by policy responses to the crisis, are large in relation to GDP... high levels of public debt may lower long-term growth and ultimately endanger monetary stability.  These risks underscore the need for credible measures to reduce current fiscal deficits in several industrial countries."  Bank for International Settlements, 80th Annual Report, June 2010.(Read Full Post)