It seems that most if not all advanced economies (US, Japan, UK to name a few) have been running budget deficits since basically the last 20 years. I understand that current debts lose value over time because of inflation and economies grow, but how can they do this for basically ever? I can’t wrap my head around the maths that makes this possible, and the markets don’t seem all that worried
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The debt never need to be paid back because the government exists “forever”. In contrast, you need to pay back your debts because you don’t last forever.
Interest payments on the debt is what really matters, as that’s the cash the government has to pay today to service the existing debt.
Also a debt default will never occur, outside of being done internationally by idiot politicians. We can pay any amount of debt by just printing more money.
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