/sci/ - Science & Math

>>10554337
Depends on the country and the debt - sometimes countries will issue debt that is to be repayed in their own currency, sometimes (especially if they need the debt to buy foreign goods) they will issue debt that is to be payed back in a foreign currency. The US debt is all owed in US dollars, for example, while Argentina has a bunch of bonds that have to be payed back in USD, since foreign lenders didn't trust them not to inflate their local currency.

So in theory, with enough counterfeiting you could inflate away a countries debt, or counterfeit the foreign currency you need to pay the money back in. However, actually faking enough money to be noticeable at the scale of even a small nation would be extremely hard to do without being caught.