Investors warn of ‘new era of fiscal dominance’ in global markets
Combination of record government debt and rising borrowing costs puts central banks under pressure
Combination of record government debt and rising borrowing costs puts central banks under pressure

Developed markets have a debt problem — some investors are looking elsewhere

Rising public debt is one concern — another is how it is being financed

In an era of high debt, it may be difficult for central banks to act without considering the knock-on effects for government

Investors are losing faith in the ability of western governments to rein in spending

The next bailout is likely to involve inflationary financing of fiscal deficits by central banks

For some observers, the rapid rise of this asset class invites unsettling historical comparisons