An in-depth analysis of how central governments and central banks go broke, focusing on the archetypical sequence of events leading to major debt crises. It examines the differences between hard money and fiat money systems in the context of these crises, highlighting how fiat systems experience more gradual devaluations. The source outlines nine stages of the final crisis phase, starting with excessive debt accumulation, progressing through private sector distress spilling over to the government and then the central bank, and culminating in debt restructuring, devaluation, and the eventual return to a new equilibrium, often involving extraordinary policies like taxes and capital controls. The analysis incorporates historical data and charts to illustrate the typical patterns and red flags of each stage.