But, if you had an amazing reputation for paying your debts, and get super low interest rates because of it, and all of a sudden you change your reputation and demand for holding your debt and currency goes down, well, then that's created a massive problem for the currency that reduces everyone's quality of life drastically.
When you don't the money, you can't go bankrupt.
But, if you had an amazing reputation for paying your debts, and get super low interest rates because of it, and all of a sudden you change your reputation and demand for holding your debt and currency goes down, well, then that's created a massive problem for the currency that reduces everyone's quality of life drastically.