"The risks of an economic and financial crisis even worse than the previous one – now involving not just the private sector, but also near-insolvent sovereigns – are significant."



I know this article is a bit outdated now. But what exactly does it mean for sovereigns to be insolvent? The ultimate asset of governments is their taxing power, only limited by the willingness of a nation to pool its resources together (or to allow their political leaders to pool such resources) politically in the pursuit of their politically-sanctioned collective ends. I just can't find any seizable country, i.e. with a significant population, natural resources, and productive infrastructure, where the taxing power of the government is reaching its limit.