I just genuinely don’t understand how it works, like couldn’t you realistically just creat more money. Isn’t it just like a number in a bank account? Am I really dumb?
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If you just keep printing more money, then that devalues all the existing money and leads to hyperinflation… see Zimbabwe as a worst case example, where there are trillion dollar bills that can only buy a load of bread.
So countries instead issue bonds to borrow money from investors, paying them interest in return for the loans. Those outstanding bonds that governments owe back interest and principal are the debt that countries have.
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