The Government can borrow any amount and retain good credit since they have the ability to print the money when the repayments are due. There is no reason for the credit rating of the Government to be anything other than perfect. Why would they default?
Is to print the money, so that it is in circulation permanently any worse than for the Government to borrow? What's worse about it, for the taxpayer? Is Government debt temporary, do we really expect that it will ever be repaid, so that deflation results? And if not then it must be as damaging as direct printing.
A default of Government debt would result in the Government resorting to direct printing...
The Government might be reluctant to print new money to pay off the debt?
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