Comments on what to watch for if the USD drops as a warning government debt is at unsustainable levels,
- currency would likely "flash red" should financing costs outstrip growth
- and interest payments spur a "snowball" in the debt burden as a share of the economy
"Of the market variables that can best flag when policy is overreaching, the exchange rate is likely to be best at playing the role of 'canary' -- flagging …. excess"
Comments from Deutsche Bank, not an imminent warning but something to keep in the back of your mind. Applies to other countries also, of course.
