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The government could just tax all of the country's assets a small assessment of 4% or 5% over a period of 5 years and retire all of the debt obligations that become due during that time period. That would be a substantial debt reduction amount. However, if you can sell new debt at 1.50% to 2.25% coupon rate for 10 years or 30 years that is pretty cheap.
A country's fiat currency is worth what the assets of the country are.
If you don't think that the government can try to take a chunk of your money or asset value by currency devaluation or inflation you never read a history book.
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