this post was submitted on 05 Feb 2024
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Finance

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Why can't the government buy its own debts and cancel them? (beehaw.org)
submitted 9 months ago by TheBaldness@beehaw.org to c/finance@beehaw.org
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Or does the government already do this? If so, can anyone explain like I'm five?

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[–] Zworf@beehaw.org 4 points 9 months ago

They can just not pay them back, defaulting basically.

But then their ratings will go down (a LOT) and basically they will not be able to loan any more, at least not on favourable terms because the market doesn't trust them anymore.