Debt jubilee is debt forgiveness, and it’s already happening at a staggering rate for public sector debt. Sovereign debt is fundamentally different from private debt in that the sovereign makes the rules and never has to repay its debt. When the Fed purchases a Treasury, and then continues to roll over that Treasury forever, then that debt is effectively cancelled. That is why public sector debt is not deflationary, nor a drag on growth. This post walks through the mechanics …