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 Gavelkal

Evidence Quote

The problem is never debt to GDP. The problem is always what percentage of your debt is owned by foreigners

Source

Louis-Vincent Gave: Inside China's Plan to Kill the Dollar's DominanceRiskReversal Media
Created: 8/12/2026, 6:20:13 PM

My Notes

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