Sovereign Debt Plus AI Bonds: "Next Shock Will Hit Advanced Economies" - Seoul Economic Daily
Sovereign Debt Plus AI Bonds: "Next Shock Will Hit Advanced Economies" - Seoul Economic Daily
Source: Seoul Economic Daily
―
DW NOTE
The Seoul Economic Daily is arguing that AI infrastructure bonds—issued to finance data centers and chip plants—will amplify sovereign debt crises when the next recession arrives. The logic: governments are already borrowing record sums to fund ordinary operations; adding illiquid, long-duration tech infrastructure to the debt pile means the next fiscal shock will land on balance sheets with no room to absorb it. The U.S. borrowed $1.8 trillion in the first ten months of fiscal 2026 alone. If that borrowing also funded stranded AI assets when demand collapses, the writedowns won't be contained to the private sector.