Let's take a simple network of three parties A, B and C. A owes B 100$, who in turn owes C 100$, who in turn owes A 100$.
In theory, the debts cancel out each other... and the same can be done e.g. with debts of states. What I don't get is why we prefer to pay debts and especially interests when we could just take the debts and cancel them out where possible.
In theory, the debts cancel out each other... and the same can be done e.g. with debts of states. What I don't get is why we prefer to pay debts and especially interests when we could just take the debts and cancel them out where possible.