In many ways these are magical times. Governments seemingly exist to protect us from all harm and negative consequences. When a pandemic hits, the existing gusher of public spending becomes an unchecked torrent, interest rates are lowered to effectively zero, yet inflation remains caged. Almost any item large or small can be purchased with instant credit on easy terms. Individuals, organizations and groups in trouble are showered with financial beneficence. But where is the money actually coming from? Who, if anyone, is to pay for it all? Can nothing bad come of the unprecedented profligacy? Matthew Lau reminds us that reality will reassert itself and when the spell is broken at last, potentially ruinous consequences lie in wait. Lau evaluates the options available to debt-burdened governments – most of them bad. Part I of a two-part analysis.