National bankruptcy: refers to a country’s financial revenue being insufficient to pay for the foreign exchange necessary for its imported goods, that is, its external assets are less than its external liabilities, or its sovereign debt is greater than its GDP, and it is insolvent. . This concept was proposed by the International Monetary Fund in 2002. Sovereign credit crises may also be colloquially referred to as "national bankruptcies." Like personal and institutional bankruptcies, state bankruptcy is simply defined as the declaration of insolvency by a sovereign state.

Impact: "National bankruptcy" is inevitable, but it is not the end of the world, but a new beginning of another economic system. In the process of "national bankruptcy", the cards will be reshuffled, currencies, political institutions, and governments will change, however, the assets will be retained. If a country goes bankrupt and the government has too much debt to repay, all citizens will be in debt until someone takes over or pays it off. In the end, all citizens will live in domestic and external debt, and the country's economy will also face the risk of collapse. If a borrowing country controls a bankrupt country through this method, the country will become a dependent country or a puppet country and lose its independent character economically and politically, with very serious consequences.