History shows us that having too much debt during an economic downturn leads to a classic, self-reinforcing cycle where:

1) The empire can no longer borrow the money to repay its debts

2) It prints a lot of new money, which devalues the currency and raises inflation

3) Living standards decline, leading to the rise of political extremism

4) Turbulent economic conditions undermine productivity and there is conflict about how to divide the shrinking resources

5) Populist leaders emerge pledging to take control and bring about order

Ray Dalio