Hemingway links a country’s financial conduct with its wider credibility. His argument is that when a government fails to honour its debts, the damage extends beyond the immediate financial loss. Creditors, other governments and citizens may begin to doubt whether its further promises or commitments can be trusted. Debt repayment therefore becomes, in this formulation, a test of national reliability.

In Notes on the Next War, the remark forms part of a broader discussion of international politics, economic obligations and the conditions that can lead countries towards conflict. Hemingway states the principle in deliberately absolute terms, although in practice sovereign defaults can arise from many different circumstances and do not necessarily make every subsequent commitment worthless. The underlying point is about reputation: trust between states depends partly on a record of keeping agreements, and failure to meet major obligations can weaken confidence in future assurances.