# Sovereign Debt Crisis

The Great Debt Reckoning: Why Wall Street Titans are Bracing for a Sovereign Liquidity Crisis

Global markets are facing a systemic crisis as rising interest rates in Japan threaten to trigger a massive unwind of the yen carry trade, potentially destabilizing the $39 trillion US debt market. In response, the US is exploring radical measures including trade de-escalation with China to curb inflation and the controversial revaluation of its gold reserves to bolster the national balance sheet.