So basically the economy in the entire world (apart from china I think?) is falling apart. Part of this is because of the HUGE debts each country has, what I can't understand is why they wipe the debt clean? (I know about economy I'm not an idiot just this puzzles me)
They won't do that because the countries can now use the debt owed to them as leverage. China for example could threaten to call in the funds that the United States owes them if they do not perform a certain action or something of that nature. If China does this, then the U.S. will have to call in the debt owed to them. So I believe the national debt's are kept intact as a tool and out of fear of that tool.