The problems of France are not limited to the country as to some extent most of Europe has been following similar policies. France just did more of it for longer and is now paying the consequences.
In absolute terms, 5% interest rate on the OAT is not so high historically, it's just the straw that will break the camel's back. Compounded with social unrest, inflation and lack of investment, the question is: Can it crash the world economy?
On it's own, this is unlikely. But if the fire spreads to the rest of Europe as it seems quite possible, if the Middle East conflagration keeps growing and if the AI bubble burst in the US as we are seeing some signs already, then the risk grows exponentially. And this time, unlike 2008, no amount of money will be enough to stop the fire.
PS; The discussion is very interesting which is why I posted it but I do not share the ideology of Yanis Varoufakis. (an important detail! :-)
France is at war with itself - Yanis Varoufakis & Wolfgang Munchau | The Econoclasts
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