> How high does the debt have to grow before the country and government collapse? The absolute amount doesn't necessarily matter, because if you own the bonds

> How high does the debt have to grow before the country and government collapse? The absolute amount doesn't necessarily matter, because if you own the bonds then you're paying the debt to yourself. Other factors are a) who owns them b) what the interest rate is c) what currency they're in. The usual problem for smaller countries is when they owe debt in foreign currencies. Also note that long term interest rates would be very high if the market thought there was a hyperinflation risk, and they aren't.