A review of Latin America’s debt crises shows that hyperinflation and currency collapse followed a specific sequence: external debt shocks, the nationalization of private liabilities, soaring domestic borrowing costs, and monetary financing. Argentina and Brazil socialized private losses, creating destructive inflationary spirals. Japan, by contrast, is the world’s largest net creditor, funds itself domestically, retains long-term market access, and is shrinking the BoJ balance sheet—making comp
Drawing on Henry Thornton’s theory of credit, this piece argues that sovereign credit depends on trust, legal security, and respect for property. Policies aimed at expanding US oil production by pressuring major creditor nations such as Norway, the UAE, and Saudi Arabia risk undermining that trust. A debtor cannot strengthen its credit by threatening the interests of its creditors; doing so weakens confidence and ultimately damages the credibility of the United States itself