Quote from: johnyj on January 16, 2012, 02:47:24 PM

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

Why should money refinance debt just because it is in circulation?

How do you prevent an explosion of interest rate on government debt that would cancel out its benefits after a write-off? Or is the intention to delete all and have all the banks die?

Sorry, but this doesn't refute any of my points.