[seowulf]

But that would be defaulting on the debt, not devaluing the currency

It wouldn't be defaulting on the debt. It would be repaying the debt with a devalued currency. Paid in full.

IIRC Turkey actually did revalue their currency the same way a number of years ago. Recall issued currency and replace it with smaller denominated currency.

[Toddsterpatriot]

It wouldn't be defaulting on the debt. It would be repaying the debt with a devalued currency. Paid in full.

No. Paying back a $10,000 debt with $100 is defaulting on your debt.

Recall issued currency and replace it with smaller denominated currency.

Currency and bonds are not the same thing.