World entering crisis with highest-ever debt/deficit levels - avg budget deficit ~4% GDP, US ~6% potentially reaching 7% this year, govt debt ~100%+ GDP in developed countries.

This severely constrains governments' ability to cushion economic impact of oil shock compared to past crises.

Bond market reaction different this time - yields rising (not falling as in past crises) due to term premium increase, not inflation expectations.

Explains this is because oil shock hits growth while mounting debt/deficit concerns drive term premium higher.

Metrics flashing red: US interest expense now exceeds entire defense budget - historically problematic for big powers.

Never before entered economic crisis with such high debt/deficit levels, limiting government cushioning ability.