The way a government normally services it’s debts is to create new money, and use that to pay off the debts. However, the principle way that government creates new money these days isn’t to print it, it’s to lower the interest rate so that private banks will borrow more money from it. This represents a credit, that then balances the debts the government owes (typically from selling bonds). Raise the interest rates, and banks will borrow less money from the government, tilting the balance toward debt. There is, however, another way to reduce debt, which is to sell fewer bonds.
The way a government normally services it’s debts is to create new money, and use that to pay off the debts. However, the principle way that government creates new money these days isn’t to print it, it’s to lower the interest rate so that private banks will borrow more money from it. This represents a credit, that then balances the debts the government owes (typically from selling bonds). Raise the interest rates, and banks will borrow less money from the government, tilting the balance toward debt. There is, however, another way to reduce debt, which is to sell fewer bonds.