Sebastien,

Thought provoking article!

A few random thoughts:
1. How will Govts. deal with budget short-falls caused by increasing debt service burden? (someone's comment the Fed. Reserve now an extension of US Treasury.)
2. The bursting of Japan's real estate bubble (dates?) produced large "zombie" loans and banks that dragged down the country's GDP growth and (it appears) led to a vicious cycle of increasing debt and poor growth.

3. Debt funded private sector is far more brittle than equity funded. Increasing interest rates will cause deep stress in companies financial performance (possibly provoking mergers and bankruptcies).

At the same time, the financial strength of US corporations may be hiding substatial cracks.

See Wall Street Journal
https://www.wsj.com/articles/accounting-fraud-indicator-signals-coming-…