On the Non-Divergence Condition of the Debt-GDP Ratio Considering Consumption from Assets and Impossibility of Fiscal Collapse with Arguments about Important Misconceptions in Macroeconomics

This short note presents a non-divergence condition of the debt-GDP ratio considering consumption from assets, and shows that fiscal collapse is impossible. Also in the supplement (Appendix 3) I present arguments on important misconceptions in macroeconomics about relationship between investment and savings. I will show that investment entities and savings entities are identical and that investment and savings are the same acts.