Debt in domestic currency in countries without the gold standard is not an issue. The only case in which the government is unable to pay its debts is if it choo

Debt in domestic currency in countries without the gold standard is not an issue. The only case in which the government is unable to pay its debts is if it chooses to no longer credit money from its treasury, which it would never do on purpose given the whole point of it is to set a baseline investment that cannot fail in the traditional sense. For a historical example, when Germany died from hyperinflation, it was foreign USD debt that caused it. If the debt were denominated in Papiermark, the US would have effectively no power over what Germany chose to do when paying back its debts. For more context, see Modern Monetary Theory.