The problem in sovereign debt crises is never debt-to-GDP; it's always the percentage of debt owned by foreigners; when foreigners wake up and decide to exit (as happened in Thailand, Argentina, Greece), there's no buyer and the currency collapses; risk exists for France and Britain (both 30% foreign-held) but not the US because US assets will always have buyers at some price.
causalpending
Speaker
Louis GavelkalEvidence Quote
“The problem is never debt to GDP. The problem is always what percentage of your debt is owned by foreigners”
Created: 8/12/2026, 6:20:13 PM
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