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[+]Kromulent0 points5 points5 points
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(edited ago)
[–]Kromulent0 points
5 points
5 points
(+5|-0)
ago
(edited ago)
It's complicated, and some of it is legally unknown; the various laws that apply are not consistent and many have never really been tested.
As a practical matter, the existing debts may never be collected, but the much bigger problem is that nobody is going to load additional money to the state once that happens. At that point it's a choice between an endless bailout (and the associated moral hazard) or an actual fiscal collapse, which is really ugly and which does far more harm to innocent people than the unpaid debts themselves.
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[–] Kromulent 0 points 5 points 5 points (+5|-0) ago (edited ago)
It's complicated, and some of it is legally unknown; the various laws that apply are not consistent and many have never really been tested.
As a practical matter, the existing debts may never be collected, but the much bigger problem is that nobody is going to load additional money to the state once that happens. At that point it's a choice between an endless bailout (and the associated moral hazard) or an actual fiscal collapse, which is really ugly and which does far more harm to innocent people than the unpaid debts themselves.