State Survivability

Depending upon the size of its annual GDP, states cannot survive once their annual fiscal deficits exceed its GDP.  The reason for this, is that the interest payable upon its treasury obligations becomes so high its tax revenues can no longer sustain interest payments that are due, and because the revenues are less, taxes are raised to pay for interest payments, and those taxes serve to further reduce the GDP of the state---those that are so taxed moved to states with lower tax rates, and since these are the persons and entities contributing to the state's GDP, state GDP falls upon the loss of their contribution.  So, at the same time that more state revenue is needed to pay for interest on debt, three simultaneous events all happen:  interest rates on the state's debt rise because the state's credit rating has to fall; state's GDP decreases because those entities producing state GDP have moved on to other states; state fisc decreases because the entities contributing revenues via taxes are no longer doing so.  In short the state becomes bankrupt and so must liquidate its state powers to those other states which were fiscally more prudent and farsighted.