Selling debt

Great article today by Yanick Beaudoin and Mark Anielski regarding interest rate increases and the government selling its pandemic debt to the private market. Why?

The Bank of Canada, which has ultimate powers, must take instructions from the government and that government has the ability and the power to forgive the debt it owes to itself if it wants to.

The debt is cancelled, goes away and we move on. It’s like a husband and wife team; one of them runs up a humungous credit card debt, the other owns the credit card company. Bingo — the debt they owe themselves is forgiven. Joe Collina, Hamilton