In finance, paying back less than borrowed is called giving the banks, or lenders a haircut. It is done all the time in workouts and turnarounds. I have participated in many on both sides....the barber and the victim. Right now, we are doing the same thing by merely inflating the debt away (paying off old debt with devalued, quantitatively eased currency) all the while paying zero or wait for it....negative interest.
It is coming. If interest rates return to normal levels, half the budget becomes interest payments. That has been the plan all along....like in Greece.
We’re Greece? Awesome. I love ancient ruins.