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How sovereign debt becomes a weapon

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  1. #1

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    How sovereign debt becomes a weapon

    The UK struggled in post year wars trying to maintain a global role whilst also being very indebted.

    The Suez crises was as much about UK creditors applying financial pressure as the ex-power being able to still effectively punch above its weight.

    What will be the US's 'Suez incident'?

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  2. #2

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    No. The US creditors are mostly the US public. Also, US creditors such as China are creditors because they have benefited from trading with the US; they don't hold any moral high ground. In the Suez incident, France, Britain, and Israel just assumed that the US would stand aside and effectively, help them out. Ike didn't want to destroy relations with the Arab world and refused to do so. Hard to imagine a scenario like that today.

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