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Is Government Debt like My Debt?
No. You are a user of the currency whereas the government in a non-convertible floating flexible exchange rate is the issuer. Government debt consist of government bonds which are like a term deposit at the bank. Its just a matter of shifting government issued money from a term deposit (government bond) to a saving account (reserve account or exchange settlement account) at a central bank. It is still government issued currency. It is the net money supply.
Further Reading
There is no need to issue public debt
Modern Money Theory Basics
The National Debt Is Actually A Government Savings Account Video
No. You are a user of the currency whereas the government in a non-convertible floating flexible exchange rate is the issuer. Government debt consist of government bonds which are like a term deposit at the bank. Its just a matter of shifting government issued money from a term deposit (government bond) to a saving account (reserve account or exchange settlement account) at a central bank. It is still government issued currency. It is the net money supply.
Further Reading
There is no need to issue public debt
Modern Money Theory Basics
The National Debt Is Actually A Government Savings Account Video
