National bankruptcy is a financial term, which was put forward by the International Monetary Fund (IMF) in 22. It refers to the situation that a country's external assets are less than its external liabilities, that is, it is insolvent. In fact, national bankruptcy is a bit like personal bankruptcy, but there is too much money borrowed and there is no way to pay it back, so it is simply not paid back, which eventually leads to the collapse of credit. Not only can I never borrow money again, but I have also been forced to pay by my original creditors.

But there is still a big difference between national bankruptcy and individual bankruptcy. If an individual goes bankrupt, the debt can be recovered indefinitely. But national bankruptcy is different, because the country is not an individual, it is an independent sovereign country, and the money borrowed is also borrowed from financial institutions in various countries, not in the name of the country. Therefore, after the country goes bankrupt, there will generally be no war between countries because of debt problems. However, you have to pay back the borrowed money. The reason is very simple. No matter which country is not an independent individual in the world now, you need to trade with other countries in the world to get what your country needs for its development. If you default on your debts once you go bankrupt, no country will do business with you in the future, and the country that eventually goes bankrupt will be a dead end.

Let's go back to Sri Lanka. This country is highly dependent on the outside world, and its energy and food must be imported, otherwise the country will basically stop working within a month. The main difficulties brought by the current national bankruptcy to their country and local people also come from these two items. Now, the general impact is as follows:

First, residents' deposits will depreciate rapidly

According to the data of the Central Bank of Sri Lanka in April, the exchange rate of US dollars to Sri Lankan rupees has exceeded 1: 3, which was 1: 23 at the beginning of March, with a monthly decline of more than 32%. Due to the large fluctuation of the exchange rate, the devaluation of the national currency was directly caused, and the money put by the people in the bank was worthless at once. Because of the shortage of foreign exchange, it is impossible to change money into other countries' currencies. I can only wait for these long-term accumulated personal wealth to evaporate.

Second, the local people need to tighten their belts.

At present, Sri Lanka's fuel reserves have been basically exhausted. As the fuel shortage crisis continues, the Cabinet decided that from midnight on June 27th to July 1th, the national gas stations would only provide fuel for basic services. In addition, in order to save fuel, the government has asked non-essential government agencies to work at home, and schools continue to suspend classes. Due to the lack of oil, many people can't wait in line to refuel, which directly affects the travel and work of local people, thus directly increasing their living burden.

In addition, due to the shortage of food, the price has soared, and the supply of food on the shelves is relatively tight, especially eggs and bread. Many families have been unable to buy enough rations, and some families have changed three meals a day to two meals a day.

third, for the country, if the debt situation is not resolved for a long time, it may lose the unity of the country.

In order to continue living, paying off debts has become a road that Sri Lankan people have no choice, but their economic and natural conditions are extremely limited. There are not many chips to negotiate with other countries. At this time, if there is no certain plan, it is easy to lose national sovereignty in order to seek benefits, and the country's economy is controlled by other countries and loses the opportunity for independent development. This will be another suffering for the country and the people.

There is no doubt that national bankruptcy will definitely bring many difficulties to local people's lives, but at the same time, we should not exaggerate the hardships of residents in bankrupt countries. For example, in Sri Lanka now, economic instability has added many unstable factors to local social security, but as some media people have said, theft and robbery have not been rampant all over the streets. For example, after their protests and demonstrations ended, they did not disperse in a hubbub, but most people spontaneously cleaned up the garbage and tried to keep the streets clean and tidy. The locals said that life has to go on. The present difficulties are also temporary.