Why can’t a government forgive it’s own internal debt?
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If anyone is interested, here’s an example of a state government (a state of the United States) forgiving money it owed to itself: [https://www.capitol.hawaii.gov/sessions/session2018/bills/GM1187_.PDF](https://www.capitol.hawaii.gov/sessions/session2018/bills/GM1187_.PDF)
This occurred in Hawaii, a state of the United States. The Hawaii Tourism Authority is an agency of the Hawaii state government. The Hawaii Tourism Authority owed the (rest of the) Hawaii state government about $192 million for the construction of the Hawaii Convention Center (a big building used to host conventions) and was using revenue from the convention center to pay back the loan. The Hawaii state legislature (the state equivalent of Congress) passed a bill saying the debt is wiped clean and the Governor (the state equivalent of the President) signed the bill into law.
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