Bitcoin Forum

What the Governments do about that?

Do you think they can just wipe off the debt..


Let's Say people own debt what they cant repay so the government can just restart everything  all over again people debts will be just deleted and everything will start again?


What You think what the government will do Around the world? 

Are they gona replace the currency with other currency? 

They will let the economy to fall Down

They will restart the whole system and nobody have no debts at all.

There is possibility for that. There is what is called debt forgiveness. The government do that sometimes to its
states when it is obvious that the debt is too much or sometimes, some part of the debts are cancelled.

no. that is not possible. you think you will just delete all and get away with it if you have debt to pay to me? will be beat up by the bunch of mobsters i will hire to take the valuable things you own. if you own money to someone and you can't pay in the agreed date, your ass belongs to them.

the government will keep stealing from their people to pay debts thats how it works. if it meant they will inflate their money they will do it to show they are doing something.

That's effectively what happens in a currency collapse. If you own debts denominated in a worthless currency, the debts are worthless. That effectively means debtors are liberated and lenders lose everything.


When America sneezes, the world catches a cold. If the USD collapsed there would be a global financial meltdown. Other economies are intimately tied to the US economy, whether through manufacturing and trade, debt financing, etc. It would probably lead to the collapse of other fiat currencies and cause a global currency reset.

The system always has failures, is based on debt, the 2008 crisis was the fault of the bank, it is predicted that the next fall will be by the same bank.

There is no need to panic anymore, Bitcoin represents a form of refuge for money, some investors are waking up and are buying Bitcoin, some who do not trust technology and in this market buy gold, but digital gold is present and is Bitcoin

According to recent studies, between Visa, Master Card, PayPal and Bitcoin, Bitcoin is a third option, barely 10 years old, its adoption today is getting stronger, as time goes by people will prefer Bitcoin as better means of payment, the world economy is dominated by the hegemony of the dollar, it is obvious that it has always been this way, in case of the crash, they will begin to recover through Gold and Bitcoin, and Argentina and Venezuela have it clear, so their high volumes In negotiations with Bitcoin, now Chile is joining this trend, the reason is simple, it is a deflationary economy, used as a great refuge, if the crash occurs, the important thing is to have the diversification of money with Bitcoin, that way, we will be safe.

That's when You borrow the real money all ready created printed money!

Then why btc is still under 10k? 

Bitcoin liquitity is not enough to be accepted everywhere! 
And confirmations are slow,  indedd with visa or master card pos are instant transfers! 

There is all ready Confusing and fear but Bitcoin still not strong  If the Bitcoin is king it should be Worthed More! 

And ETH should be at least  1000 $

So crypto is under valued!

But I think the banks and government will wipe of some ammount of debt.

I think it comes down to mortgage owners i think the mortgage debts will be wiped off.


Some how the world must Go on... Government is not interested about panic or massive collapse...
They Want people will produce and economy will Go on.

The debt deleting is only option here what i see!
Other options like letting the crisis coming are much more painful and over all much more expensive since it cost a lot money to run military Operation when are in martal law situation.

there is no deleting. a country's military power matters as well.

if your country owes from China, you will have to negotiate what could happen. a result could be china will own a vast land in your country. for a country to loan there will be collateral just like if you loan someone here in the forum. they'd put pressure on you by sending fleets, mine your resources. or you accept to have a Chinese president in your country, hows that for a trade of debt?

No, it'll be impossible, countries all owe debt to each other, and one country might owe an amount and another country might owe them money... It's the world cycle.

That's never going to happen, I'm pretty sure slowly but surely the debt epidemic will just vanish.

Resetting it isn't an option, it'll be too large scale to do it, and replacing their currency with a completely new one will not work, and still won't wipe any debts, as well as it being just a complete waste of time.

This is about a government letting go of certain debts for the comprising/federating unit and not a government wiping off an individual debt to the government, an organization or agency, no.
I believe the government can do that inform of what is called bailout if her citizens are getting impoverished where the state government can't fund the state properly as a result of debt servicing to the central, maybe like in a con federal system.

A reset is impossible to happen IMO.

If the debt has been huge enough, do you think that the lender will just allow it to pass? there's a massive resources, time and wealth that has been used for that debt and a reset will be the solution? I don't think that they'll allow that to happen.

As for the wiping out the debt, the interest makes it even higher so I don't think it would come.

There will be a big war if the world debt are gone. Example here is China and USA, we all know that despite of the trade war USA has a lot of debt to China and he needs to pay that and there’s no say to restart that debt because it will continue to increase over the years. There’s no such thing like rebooting the whole system, we are all trap on big debts.

Governments are clearly manipulating their economies and monetary system and that World debt will continue to inflate not unless a significant intervention happens - possibly from crypto industry! :)

Interestingly, just came across this article -  ‘Plan A Has Failed’ — Global Debt to Hit $255T or $12.1M per Bitcoin (https://cointelegraph.com/news/plan-a-has-failed-global-debt-to-hit-255t-or-121m-per-bitcoin) that clearly demonstrate that the world economy might implode and that it highlights Bitcoins importance in contrast with fiat economy!

That's what happens with uncollectable debts. What else are they going to do? If the US defaults on its debts to China, what is China going to do about it, invade the US with their military? :P

When the world economy implodes I doubt that anyone would even slightly care about Bitcoin.

In fact, I strongly believe that as long as Bitcoin is a risk-on asset, it's much better for Bitcoin to have the world economy to not implode. The more confident investors and institutions are in the economy, the more risk they are willing to expose themselves to, which is what we have seen with stocks and other risk-on assets. They keep increasing.

Bitcoin needs much more time to grow on non crypto people as store of value and safe haven asset. How much time I can't say, but I presume at least another decade.

This is what likely to happen, theres no such thing as deleting debts its total scifi lol. A country fail to pay for its debts sometimes embargoed and not entertain anymore if they need help to. For a country to have a good reputation they should pay their obligations to their neighbours to avoid conflict.

the fact is that no government in the world can erase someone's debt because debt is an obligation that must be fulfilled. On the other hand, even though we have no debt to the government but in fact we still have a state debt that is actually borne by each individual country since he was born. Therefore it is very ironic. People do not know anything but bear the debt since he was born into the world.
I think debt will disappear when all the world's financial models are destroyed and returned to barter.

Well sooner or later, those Governments that are doing some kind of financial stunts would one day start to feel the symptoms preceding to financial meltdown. And of course they have to take risks as much as they can just to keep their economy afloat unmindful of a possible financial catastrophe that might happen!

Absolutely! It would be better if Bitcoin's advantages will be recognized and be allowed to grow with confidence among non crypto people though I think a decade will not be enough to achieve optimum adoption. Imho.

There were cases of huge national debts that were totally scrapped. That is one thing that we should not be seeing. That implies one most important thing, that the fiat system is perfect in its imperfection and is not reliable at all. The system is as flawed as it is being ruled by people whose subjective decisions will put other people or countries at the cruel end of poverty while the others live a decent life. And only for what? Only for their decisions about a certain fiat which has no actual value in truth.

Such cases should not be easy to erase because they will not have any responsibility at all, it is better than any debt must be resolved fairly, the system is not instantly able to be good, only all the systems used can still be revised and carried out evaluation so that it can create a strong system and no more disability. such a process must be gone through and is mandatory because it can later provide a powerful system.

No, no they can't just bloody wipe the debts of the world, write it off like it's a bloody joke. They must properly address such events otherwise history would only repeat itself. I'm pretty sure OP posted this because of the recent announcement of the global debt by the end of the year , which amounts to $255 trillion, which is honestly not a small amount.

I just wish the government could provide a proper solution, instead of deceiving the masses, making them accumulate more debt to pay the global debt. Them not addressing the problem early on really gives out the message that they don't give a thought about anything that could happen to the world economy.

Debt is not all bad. For example, if you own a company, you will always have debts for multiple activities, e.g., investing activities, operational activities, etc. A company might have short term debts for raw materials provided by its suppliers at some point. Hence, if the mentioned company goes default, the effect would spread to other companies. There's no such thing as wiping out the debts or "reset," if not all the affected parties can all agree with it.

The same logic can be applied to the country's debt or sovereign debt. If a country goes bankrupt (or default), there will be negotiations between all stakeholders. Well, the lenders can indeed forgive/erase the debt, but that's usually when the borrowers are too miserable at the point of the lenders think that no way the country will be able to recover ( and repay its debt).

Never heard of debt forgiveness but as I recall that when a country owes money to another country and couldn't afford to pay it due to the huge amount which is mostly because of the interests it accumulated throughout the years. The party involved would come to an agreement where they would lease their port for a certain period of time which commonly happens in China and those who have debts on them which some people call it China money debt trap or something like that (can't remember the exact name).

How come it would be reset when in the first place their debt wasn't in the government. It ain't working that way, people who lend their money might get their wealth fall down. And in addition, people who had alot of debt might abuse such system 'cause it is definitely their advantage and would probably result to big problem and worst chaos.

Well, it is not a wonder to behold because the financial players up there in their exclusive ivory towers are the ones who dictate all the rules. Down here in our dirty world, that is too much to imagine. That is impossible in our limited world. But for those who are up there who made money itself, created them up to how much they want, distributed them to whoever they prefer, and used them to destroy whatever they want destroyed, that is very possible. That is why fiat is plain bullshit. Bitcoin and crypto is our best weapon against them.

I don't think the government will be able to write off debt. because surely this will be refused by those who give loans. they will try hard to get their money back. the state is also like that if a country owes to another country if the country is unable to pay the debt then surely they will take the country's land in exchange for their debt. and changing currencies is not a good way to settle debts. because there are still parties who will be harmed.

Not even a chance, the reason why some countries have power/authority over some country is because of debt. They have control over natural resources, manpower, business expansion, etc because of debt. If we will all go back to zero leading countries will lose their power.

That is very impossible to happen, there's a lot of factor to consider before the government to take actions in that kind of situation. Yes, debts are also important but that's the purpose why people work hard just to earn money. They value money so much that they can sacrifice their time and effort just to earn money.

They can't reset everything for the fresh start, imagine people living without debt and restarting themselves. It is very hard and unfair to many.

Government should think of another solution to that economic issue. Not just a careless action that can harm many people.

Imagine your currency having exaggerated less value.
Like for 1 USD you will need 1 million of your currency.
Now, before you got 2 million debt in your bank with your currency.
You will just need to pay 2 USD to fill that debt and voila you are free.

That will be the case if your economy suddenly went down specially in the financial region. It can happen.

A lot of countries have had their debt written off or debt cancelled by the World Bank, just like some companies write off people's debt when it

becomes clear that those people would not be able to pay back the debt. In some instances this come with some sort of asset transfer agreement,

but in most instances this happens with no requirements. Example : https://www.theguardian.com/politics/2005/jun/11/uk.g8  These countries will

then offer some tax incentives for these countries or Banks to operate in those affected countries. (Less import duties etc.) This is how 1st world

countries get there claws into poorer countries, because they get leverage to broker other deals that would favor them in the future.  >:(

Just goes to show how the world is run by bankers more than governments. It's impossible to reset  a country's debts since that's how the people in power take control. I'm just curious as to how ended up with this kind of system and where exactly is the point where this started. Like how did the countries start accumulating debts in the first place.

That's pretty rare and don't know anyone who was a beneficiary. Heck even country's can't just escape their debts. Look at Greece, it's been in debt ever since it became independent. They'll just get the next government to pay it. If they weren't completely responsible for installing one that promise to pay them back.

On the individual level the only "debt forgiveness" I've seen at least in my country are for taxes. Basically they just tell you that they are willing to forgive part of the interest on tax you missed as long as you finally pay them.


Unfortunately today people get in debt for things that don't allow them to get any profit out off. I'm seeing issues about student debts in the US and I think it's unfair for responsible people that have already paid up their's that they'll end up having to pay for those that got vanity courses like gender studies who can't maintain a job to pay their debts.

a country can always have money, they can collect tax from their citizens without even returning a good projects for the benefit of the people. governments are there to govern the society, they pay police/military men to protect citizens and they need to collect funds for that.  countries who will venture to give benefits to their fellow men will develop projects which they ask funds from neighboring countries and normally the conditions are not for public reading but certainly these will have interest and if defaults will have corresponding sanctions.

Japan is a rich country and will fund projects in Philippines but this fund will be sort of a debt and will have interest and also the raw products must come from Japan as well as it will be on the contract. That's how they make demands for the JPY too making their economy better while enriching thru interest and selling their products. That's how countries get to have debts, you can relate this to procurement.

It's like part of a country to have debts. Almost or all every country have debt to other countries. Even developed countries have debts. But that doesn't mean they have to reser the currency just to remove all debts. As far as I know, a country is continuously paying its debt but that don't conclude that they'll be on financial crisis.
If the world we're going to reset the currency to remove all debts, we will still end up with debts with that new currency so I guess we cannot escape debt.

If I can still remember it right when this kind of topic was discussed during my student days, offers to totally scrap off a certain country's debt is for those countries that have just attained democracy. This is the transition phase from a dictatorial or totalitarian phase into a democratic phase. For these countries to be able to start from scratch clean and not from the remnants of the old regimes, they have the option to accept the offer and develop their economy from there.

When they have the solution for this problem, they just need to avail it. The millennial generation has internet. They can find a lot of ways to make money by going online and searching on google. Even after having bitcoin, if these people are still facing economical problems, then it is due to lack of their own knowledge. If they will earn bitcoin, all debts and financial crisis will get resolved.

Governments can actually do whatever that they want, the can decide to forgive bad debts and even redenominate their entire currency whenever that they want. Because they control the central bank of their respective countries. Take a look at the economy of Zimbabwe which is in tatters because of poor economy management. They had to redenominate their currency just to prevent people carrying a bus load of money just to buy bread.

The good thing about Bitcoin is that it combines money with tech in a completely new and exciting fashion, and let the younger generation be a tech generation. In that regard, the rate of adoption will be exponentially bigger and faster for Bitcoin than it has been with previous forms of money. But you might be right that a decade isn't enough.

I just want Bitcoin to take over, regardless of how long it takes, and with governments continuously making horrible financial decisions, they only make it easier for Bitcoin to do so. ;D

I think the best case scenario would be the the jailing of the huge banks with debts. Now you may think "how can you jail a bank" but the paper work is always there, whoever had their say in getting more and more debt and being in so much risk should be jailed. Do you know how horrible our economic system right now? Even after 2008? Banks are trying to make more and more money while getting it with more and more risks once again like they never learnt anything from 2008.

Well they did learned something, they learned that even when they do horrible stuff they are actually untouchable because government doesn't know what to do and that is why they can lose as much money as possible and if they ever go bankrupt the government will save them. If we jailed all the important figure heads during 2008 that caused it, everyone would have been more careful today.

The world system is currently in crisis. The environment is getting destroyed and natural resources are being abused leading to shortage which will surely end up resulting into famine. If the governments of different nations are just going to sit and act blind, our world will soon meet its end. The proposal of having cryptocurrency as an official monetary mean for all the people can be a tool to save the world from drowning. It may be theoretical but we will never know what will happen if we are not going to try.

Government looks not serious with crypto world because have big risk if legal using digital currency payment, how come if their people buy bitcoin with higher price and suddenly drop to lower maybe many people will fault government why have to legal using bitcoin as transaction payment, with bitcoin price can't control and stable make government still illegal using bitcoin as currency.

Bankers and elite not interested Money!
They will print it anyways as much They Want!

But what they are interested is that,  the people working dont ask questions!
That's how they make passive income, so they are investing into infrastructures to create and maintain the jobs and workers.


So what their main intetests are is news and media and controlling the workers union.  

They dont Care about Finances and wealth...
They dont Care about crypto either!  
Crypto and investing field is just Good to Take funds from crypto stock and all kind of investors and there for to secure their Financial stability to be destroyed and then They have cheap Labour and people who is in debt.  
And If You are in debt You work with lower wage coz u got no other option so the debt is created just to make sure Good workers never rise Up and working with low wages.
But They are not interested about profit they are intetested just that people will Work with low wages and just keep working and Producing.

So That's why is pyrocraty and Everybody needs some licenses and a lot Paper work to destroy small Enterprise'i business sectors.

Governments will forgive each other debts but they will never forgive the debts of the people since the whole point of a fiat currency and fractional reserve banking is to get people indebted so they do not really have any option but to keep working for the rest of their lives, and not only that people have accepted to use their money in a very inefficient way by being indebted all the time, a person that refused to be indebted will enjoy a better quality of life and obviously banks do not want them to know that.

Well said!  That's true!

If all the governments in this world are in debt then where is that money come from?

Who the hell are those banks? How they possible to make so much money and make people to be in debt.

If we reach one stage that all fiat currency value if going to be none then there will be no more new fiat because we already found the decentralized money.

Without debt the Money have no value! 
The bigger is the debt the bigger is fiat currency value!
If Everybody is in debt Everybody will looking for Money to pay debt.
But only few will have the Money!

restarting the system is completely impossible and we still have to repay every year with the tax collected. But that public debt will gradually be paid off if the country grows well every year and people pay honest taxes. otherwise, those countries will be exposed to large debts and the country will sink into economic crisis or inflation up to millions of percent, just like Venezuela is.

Actually money has no value,which was just made of paper but governments promises us it has the value but it will become lesser and lesser when the debt increases so bigger debt is good for banks not for an economy.Exactly if people have debt they will keep working hard to repay it but they doesn't realize the value of money they were making reduces for their every salary period.

Fiat currency has value the paper has value When You are in debt to pay debt You need that paper! 
Without that paper You Can't serve Ur debt!


So how Come that this paper has no value?? 
I Think You are missing here something
Fiat currency has biggest value Still!

If you are aware that the printing money does not mean that the bank or government can print money without any repercussion, in normal circumstance they would print 4% of the total gross domestic Production and if the policy makers or government is dumb enough to print the currency without any limits, then you will find situations you saw in Venezuela and Zimbabwe and not everyone is attracted to decentralize currency.

Making cost of $100 note is not $100 so you are assuming things wrong.We can never get away from debt until fiat stays because inflation will never stops and government also not going to stop getting loans for the country's betterment.
No one really knows that banks printing based on these formula? Then why inflation rate hits 6% if banks are not allowed to print more than 4%.

Haha! You are joking right? The whole financial system is based on Debt itself. The richest countries have more debts and a better GDP while the poor countries have lesser debts with bad GDP. There actually is no need to restart the situation because there is no situation at all. Internal debt is just a myth which actually would never be repaid so there technically is just thin air. Only debt prevelant is International Debt which too is more or less not being repaid by most of the countries as of now but that is a true determinant of who would be the top leader in the World. Restarting the whole system won't happen because that would require finishing the value of fiat currency but once that happens there would be a complete riot situation in the world as people would not know where to go.

Hey, no one can say what they'll do but while a reset makes logical sense there's a lot of emotion and ego in these decisions. Most leaders don't want to be in the chair for such an event because they fear it won't work. Also, a lot of governments owe other governments, so it would require multiple or all major governments agreeing to forgive the debt to each other, which also agrees to give up revenue from the interest earned on loans granted to other countries.

We should see some real action come out of this or else governments will have a much bigger problem on their hand. Ignoring the issue is not the answer!

They dont do that, there's an agreement where banks set some rules to whenever if the person failed to pay the debt in full. They will take away their property and everything you own.

What's more horrific is that they will inflate the currency by printing more paper money to drown you in debt, so you have to spend your whole life paying for those debts.

Unless if a global financial crisis happens which the banks are doing where they're exceeding the US debt mortgage to a staggering 15.8 trillion. We may see a recession and reset to all the debts.

We can. It's actually possible to have a currency reset. Take a look at the mountain of debt we're all stuck into and think whether they can or not. At this point there's literally no way we can recover from the deep debt hole we are into.


What makes you think they fear it wouldn't work? It would, but the problem is the following: a reset of the global debt is needed for this to really do some change in the world economy. A global debt erase means everyone is free from debts, which would be unfair for a lot of the population (those who are not in debt right now would be in disadvantage, because those in debt will be favored).

Most countries don't necessarily need to agree with each other to proceed with a reset. As soon as the reset is processed in such a way that every leader has a benefit from it, it could easily happen. A bigger problem would probably be countries like North Korea, but I doubt they'd refuse a good offer. If they want it to happen, they have all the resources and people they need to do it and nothing would stop them.

A currency reset would most likely not mean a RESET to 0, but swapping the $, €, £ and all the other currencies with a new one that could track the progress and all our funds in a way easier manner. A reset to 0 is too harsh, they have to do a smooth transition and I believe it'll happen as soon as the national cryptocurrencies launch. It'll be a reset disguised in a currency swap. We're slowly going cashless if you think about it and look around. Cash transactions are being limited as much as possible, and cash transactions are inversely proportional with the control of our funds.

That's a rather optimistic view of the OP. Only way that will happen is if there was a complete GLOBAL societal collapse. Yup, just your country collapsing doesn't mean foreign governments will write your debt away. And even if they "do" in practice they'll still make you pay for it by asking to give them so and so rights etc.

So for those thinking their student loans are gonna be forgiven if they elect so-and-so into office, go face a mirror and slap your face till it turns red then do the same to the other cheek. What you and your country will go through to "forgive" that debt will feel x100 worse than that for whatever number of years you'll have left alive.


Hard to explain but this fucked Greece multiple times in the past. Thing is, the debt is never truly forgiven, the creditors will always try to find a way to take their money back.

It is possible, that is, if all the government will agree on that. It can be possible to have currency reset and just forget about the debts of everyone, of course it depends on every country, but the nature of a human, we are all greedy and nothing can change that fact. We all want the things we did will be paid off and I think that will be the problem. Some countries may agree to have this currency reset most especially those with big amount of debts but of course the problem will be the creditor. Will they agree on that? Well that's the question that should be answered.

agreements between nations can help in transacting across countries, and this certainly can develop business in the import and export sector. without the opportunity, I think the crypto workspace seems limited, but I think it still takes a long time to be able to see it

Switching from one fiat currency to another fiat means coming out of the tiger's mouth into the crocodile's mouth. The FIAT money system is what causes debt inflation at this time. So the culprit is the existence of fiat money itself. Start reviewing and making concrete actions to simulate the use of currencies with intrinsic value.

So to resolve global debt the way is to stop the practice of debt by eliminating banks that apply interest rates.

The practice of debt relief with various mechanisms has already taken place in this world, but if what is meant is "back to zero" then the negotiations will be very heavy because other countries' debt means foreign exchange for other countries. "back to zero" also means instability for a country whose foreign exchange reserves are in the form of government bonds.

Here are some mechanisms for debt cancellation

- Basic Toronto, the choice of conventional assistance in the form of; cancellation of the loan to one-third of the loan value, a reduction in interest on all loan volumes, extension of the repayment period to 25 years
- Brady Plan, by eliminating part of the debt, but the remaining debt is guaranteed by the IMF or the World Bank, as long as it follows the required adjustment programs.
- Debt swap for capital (debt for equity swap)
- Debt exchange for certain humanitarian or environmental programs, such as (debt for nature swap, debt for health)

The burden of the global debt crisis should be shared evenly among all parties not just charged to developing countries or poor countries)



Cryptocurrency can indeed shift the fiat money system with all its problems. But learning from previous fiat currency failures, shouldn't we rely on crypto on real gold.

Cashless transactions, although efficient, clearly cause huge holes due to the practice of creating money, making it more frustrating that our assets are only in the form of writings on a computer or system without real guarantees that the amount is appropriate.

Blockchain technology can be a bridge to close the hole and bring transparency to the world economy. So that even distribution and welfare of the economy can be felt by everyone.

no, that won't happen. debt remains. although currency changes. because everything has notes. for example all currencies of each country are replaced with bitcoin. it will not erase debt. but disrupting the world economy is true. especially large economies such as the US, EUROPE, etc. because we know that this country is the economic leader in the world.

No, won't happen. Governments may forgive some kinds of debts but like a loanshark, they'll just take it out of the other users by increasing taxes. As for a government allowing its own currency to crash and get replaced by a different fiat, they won't do it voluntarily.

Look at Venezuela and Zimbabwe. The citizens have started using USD and in the latter's case, it all but supplanted the local currency. Did Zim's financial responsibilities got wiped clean? No.

World debt leads to financial crisis, that happened many times in the past. Financial assets lose a large part of their value, that creates a chaos. Expert speculates when we will hit the next huge global crisis, pessimists saying this year, US will enter it's next recession and that will lead to crash. Some saying next year, or there will be no crisis. It's on each of us to read news and to make some conclusions, personal I believe that fiat will get into some huge crisis in next 5 years, more or less, which will benefit crypto of course.
About currency reset, I don't believe that can be an option. Global economy is a mess, we don't even know who have money and where, we don't know connections, and to everyone agrees on some currency reset, debt reset, it's impossible! Nobody will forgive debt to enemy, and across the world there are many countries who have many enemies.

There is a question that no one seems to ask: but if the whole known world (USA, China, Russia, Europe, etc.) is in debt, and this debt rises more and more, then who the hell is the creditor?
Who is waiting to be refunded?
There is something very strange about all this ...

I agree, and it seems that financial stability between the countries are much more complicated than what we thought. Analyzing the transactions between countries debt is hard to understand. The whole world runs on money, for now, all what we can do is to be aware about the financial trends around the globe and focus on our own investments or money.

Government can't just wipe all existing debt for if they do, their currency, financial market, stock market and whole economy will crash. There are no reset button for debt unless it is paid with all its due. If you thought that removing all debt will elevate your social and economic status will lead to a better world, think again.

  But debt-wise, that is possible. Some countries implement what is called a debt forgiveness. Usually this happens when the owner of the money which is in this case the government finds the debt of the person or the state too high to pay off based on his/its  economic status, or as an incentive for paying off a major debt if you have multiple debts to pay. That being said, it happens. But not quite frequent.

It looks possible on paper. But in reality, it is improbable. Government can't just wipe off debts or hit the restart button. The ones who wants this sort of restart are the debtors. And if you wipe off another country's debt, you might not be helping the country. You will be sending the information that they can keep owing until they are asked not to pay back.Every debt is paid one way or the other