Eli5: How can some country have trillions of dollar in debt like Japan but still functional without any consequences?

Question

Eli5: How can some country have trillions of dollar in debt like Japan but still functional without any consequences?

In: 101

Answer 1

One part is because of that unique property : In capitalism, one’s revenue is another one’s expense.

National debt (debt of the government to its own citizen companies) mean the government give money to its citizen making its economy work.

A government that “make” money to pay back its debt would, by that first statement, be taking money away from its own citizen.

Debt to other countries is a bit different but this is ELI5 and the international economical system is not ELI5 compatible (some would say on purpose 😛)