We propose a novel approach to sovereign crises. Using seven decades of data for 40 economies, we show that as governments devote more revenue towards debt service, growth slows. If fiscal surpluses do not adjust, inflationary pressures build: deficits financed through money creation or excessive borrowing undermine price stability and erode confidence. Developed economies raise primary surpluses almost twice as much as emerging economies in response to higher interest burdens. As a result, developed economies experience slower growth with disinflation, while emerging economies face smaller output losses but much higher inflation. Debt burdens predict hyperinflation and disasters in consumption and output.