ECB's Lagarde: Debt will massively increase because of the crisis, and has to be repaid
Lagarde reaffirms that government debt will eventually have to be repaid
No. Just no. Governments will never run surpluses just with a snap of a finger and what is happening to the world and their debt levels now is basically what we have seen with Japan over the past two decades.
If anything, lawmakers should take advantage of the low rates now to lock in debt maturities for the next 20-30 years. However, that is mainly just for the optics.
When the next crisis trugs along, we'll be back here talking about the same issue once again and the next set of policymakers will be telling us that "debt has to be repaid" still.