What Would Happen if Lenders Write Off All Debts?

If debt was erased, there would be a massive transfer of wealth from the old to the young and rments. The super wealthy may lose some money, but they usually invest in equity rather than debt. And then he said, in addition, institutional lenders would all be bankrupt, banks, insurance companies, pension funds,. The world economy would probably collapse. Every one would suffer. Eracing all debt is the nuclear weapon of economic warfare.