Even there is no problem, money still needs to be printed more and more every year, and printing more money does not necessary cause inflation, as long as printed money have somewhere to go (in this case paying the debt), and the productivity of goods and services can catch up
Actually this will encourage the loan activities, since the borrower will always be backed by printed money in a worst case scenario
Am I the only one who thinks this is completely insane?
You can't fix the speculators at negative interest rates after inflation, and if you don't, they will end up with more money, causing inflation, bang feedback to the interest, game over.
You have to trust the governments to not play a Tragedy of the Commons in which they compete to borrow just at the limit and spend, inflation, double feedback to the banks, kills you in just a few years. But simply deleting the debt gets you a burst of bankruptcy filings together with the financial equivalent of an MW 9 earthquake due to illiquid markets.
How the hell is this supposed to work? Who should pay the bill of the debt that is never intended to be paid back? I don't have the feeling that someone thought this through to the end.
One simple question is: once locked in debt feedbacks, can you
ever reduce inflation again without the governments dying instantly?
Too extreme, most of the time it's in the middle.
The concept of debt is vague, depends on peoples relationship, the debt can be write off. I just send 1000 dollar to my father to celebrate his birthday, does he owe me that sum of money? I have seen many private debts end up with nothing, either paid back in a discounted form, or not at all. At government level I think it is more or less the same
Printing money to pay back the debt is a very good test of how much money actually there is available. If there is really a liquidity problem, then newly injected money will not cause inflation. Otherwise, if injected money caused high inflation, then there are plenty of money in circulation, these money will be able to refinance those debts easily