this post was submitted on 15 Jul 2025
210 points (97.7% liked)

World News

36943 readers
558 users here now

News from around the world!

Rules:

founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] omega_x3@lemmy.world 7 points 2 days ago (2 children)

It does have to pay interest on that debt to all the bond holders, if it doesn't then the bonds lose value and everyone that owns them trys to offload them.

[–] bennieandthez@lemmygrad.ml 7 points 1 day ago

Which they print too.

if the interest is just as high as the general inflation, then the government can just take out extra loans to serve the interest without actually increasing the real total debt, because the nominal increase in debt is just eaten by the inflation.