by Rodion Giniyatullin and Vincent Steinberg
The Western welfare states know many ways to get rid of their enormous sovereign debt — at great cost of their citizens. Once the debt burden becomes unbearable, the government simply reforms the currency. Then, the government debt will be “adjusted” with the private wealth of the citizens. This is when the citizens will notice that their government’s sovereign debt is their own debt.
But the government does not always need to make use of these large torture devices. More subtle ways, such as financial repression, are possible.