Economic debt is on a different level. Some countries have huge debt, while some countries are in debt that they cannot fully repay through inflation or by their foreign exports. This can be said to be one good way of repaying debt.
The general assumption at face value when it comes to the repayment of debt is that, eventually countries pay up and are free from indebtedness.
Debts are paid back by creating new and bigger debts.
This would be true if the government takes a new loan to pay off an old loan. But this is not how it is. Government revenues are not growing fast enough to pay off an old debt. Economic debt is hard to pay off.
The general assumption at face value when it comes to the repayment of debt is that, eventually countries pay up and are free from indebtedness.
Debts are paid back by creating new and bigger debts.
That’s right. Many people don’t realise that the debt-money system we live in tends towards constant and potentially infinite expansion of the money supply because, when debt-money is created, the problem is the interest – which isn’t actually there – and the only way to pay it back is to create more debt ad infinitum. There are just a few minor bumps in the road, known as crises, where politicians and central banks temporarily reduce the money supply until they expand it again by much more so that the system does not collapse.
It is totally fucked up.
Debts are paid back by creating new and bigger debts.
Sounds like the liars paradox, the debt is not ever repaid I think we can just agree on that rather then go in circles.
If each dollar were denominated in the year of issue as its value then the problem would be more obvious. We aren't ever repaying the value taken in the first place, they give interest upon it I suppose is fair to say. Its also notable that the market is increasingly asking for more interest to accommodate this inflation meta that is becoming more concious and obvious in its damage to value of investors.