Why can’t a government forgive it’s own internal debt?
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The main reason is that in the modern world we use what’s called “fiat” currency, which is basically a currency based on the “trust and value” of the nations’ economic strength.
If a government “forgives” it’s debt (this is actually called Defaulting in the economic world and is very very bad. A normal person defaulting on a debt is called bankruptcy usually) then that trust and value of the economic strength of the nation as a whole tanks.
Which means you can say good bye to the value of its currency and you get rampant inflation that can’t be controlled.
Needless to say, it’s something they try to avoid.
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