If you pay your debts in your own currency, and
it’s accepted, you do fine.
If you pay your debts in another currency, it’s a problem.
The British ran enormous debts but were paying in
Sterling, and that worked fine until 1947.
At that point, the British went into a 30 year spiral, and it could be argued they never got out of it.
The Colonies ran enormous debts but were paying in Sterling and gold and the continental went into hyperinflation.
The Confederates were paying in Reb dollars and that
went bad leaving the south bankrupt for 100 years.
If the chinese stop accepting dollar denominated debt we are screwed. If they want a higher rate
we have a real problem.
The japanese wanted higher rates in 1991 and it sure screwed up Bush Senior.
