That is not how financially it works. Your debt is not to some unknown figure, you do have debt and people are waiting for you to pay that debt. For example, USA owes a lot of money to China right, not as a government but in general, so that is a debt right?
Well if they just cancel it, then why would China ever end up sending anything again? Why do you think nations who are incredibly poor and starving do not end up just reject paying their debt? Because they know it will not work for them and they will be ruined.
What about defaulting on the debt? Isn't that the same thing as "cancelling" it? The country declares itself in bankruptcy, eliminating its obligation to pay back the debt. I believe the plan is for governments to default on their debts, while introducing CBDCs along the way. The economy will "reset", giving everyone a renewed sense of hope. Debt is the main reason why the world is in this mess. Fix the debt, and the world will be fixed. As simple as that.
Because a "reset" would destroy more than it fixes and they know this.
Think about what you're really suggesting. Every debt gets re-calculated? Every pension? Every mortgage? Who gets to win and lose in that scenario is up to whoever is writing the rules. That's not economic policy, that's just picking winners. And the people making those rules aren't going to pick you.
CBDCs won't bring down inflation anyway. Inflation isn't happening as a result of the existence of cash. It's happening because we printed massive amounts during Covid, supply chains broke and the price of energy got expensive and housing is being used as an investment vehicle rather than shelter. Digital currency doesn't solve any of that.
What they're really doing is they're hoping that time fixes it. Let wages catch up slow down, let some businesses fail, let housing cool down maybe. It's not exciting. There's no dramatic moment. Just years of things sucking just a little less, then.
The "reset" narrative is a convenient one though. Gives people something to point at instead of dealing with boring reality that we made some policy mistakes and now we're stuck dealing with the consequences for a decade. No grand plan. Just damage control and hoping that voters don't get too angry before the next election.
We all know the rich ultimately benefits from central banks' and governments' actions. It's the "little guy" (poor people) who ends up losing it all in the long run. The introduction of CBDCs will usher a new era in totalitarianism. It's practially inevitable. Thank God Bitcoin was invented. Else, we would've been completely doomed.
