#really? 25. Public sector deficits

"Taxing capacity in the leading nation-states will fall away by 50 to 70 percent, while it will prove far more difficult to reduce spending in an orderly way. The result to be expected is a continuation of deficits that plague most OECD countries, accompanied by high real-interest rates."

This is another of the controversial implications from The Sovereign Individual: Mastering the Transition to the Information Age by James Dale Davidson & Lord William Rees-Mogg, Simon & Schuster, 1997

Is it really so?