[zztop44]

Only because policy makers choose to do so. They could just as easily create the money the pay off the debt out of thin air. But doing so wouldn’t make sense. Governments will never pay off the debt because doing so would not be good macroeconomic policy. The debt doesn’t exist to be paid off.

Governments don’t handle national accounts in the same way households manage their budgets. Don’t think about them the same way.

[dh2022]

Well the past two years showed us that the Fed (the institution that can create money out of thin air) will not do that if inflation goes up. Paying debt with money created from thin air will cause inflation and then the Fed will stop making money out of nothing.