War, Inflation, and the Hidden Reset of Sovereign Debt

War, Inflation, and the Hidden Reset of Sovereign Debt Author: Peace lover Abstract Modern wars are widely understood as geopolitical or military events, but they also serve a deeper financial function: the restructuring of unsustainable sovereign debt. This paper argues that war enables governments to perform implicit defaults through inflation, currency debasement, and financial repression, transferring losses from the state to savers, pensioners, and bondholders. Rather than openly repudiating debt, states use crisis to devalue it. War provides the political cover that makes this process socially and legally possible.