Only if you treat debt as something absolute that has to be repaid no matter what.
In reality in many cases debt is written off as impossible to claw back and sold off to unscrupulous debt enforcement companies at a fraction of the nominal value. Who in turn also rarely manage to get the money.
We as society could simply decide to forget certain types of debt and basically that is what states do via inflation and which historically many societies have done via debt jubilees.
The book “Debt the first 5000 years” gives good overview on this matter and fiat currencies in general.
Only if you treat debt as something absolute that has to be repaid no matter what.
In reality in many cases debt is written off as impossible to claw back and sold off to unscrupulous debt enforcement companies at a fraction of the nominal value. Who in turn also rarely manage to get the money.
We as society could simply decide to forget certain types of debt and basically that is what states do via inflation and which historically many societies have done via debt jubilees.
The book “Debt the first 5000 years” gives good overview on this matter and fiat currencies in general.