Eric - I’m thrilled that you are encouraging exploration of how to promote global prosperity for countries in a debtors trap. I assume you are including the United States in that category because it is. (1/4) https://twitter.com/ericschmidt/status/1303430921174110209

This problem happened millions of times throughout recorded history and the answer was always the same. (2/4)

Mechanistically, if the debt is in one’s own currency (as is true for Americans most or most Chinese) then the money will inevitably be printed, devalued and, to a lesser extent, the debts will be restructured. (3/4)

If the debt is in a foreign currency, then it will have to be restructured to bring the debt service burden as a percent of ones incomes down to a tolerable level. (4/4)