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.
If you get 5% return by refinance someone's debt, it is better than sitting there and collect 0 interest
In reality, governments can never write the debt off, they just refinance, and this refinance could go as long as several centuries... Have you heard the FED reinvesting short term loan income and principals into long term loans? For those who can borrow without debt limit, the only cost is interest, and that interest could be 0 (Germany bonds already reached negative interest)