Personal moralizing aside, we have had some very recent examples of debt forgiveness in the last century. Brady bonds in Latin America were used to get unpayable debts off the books of the banks who made bad loans to Latin American countries having crushing dollar denominated debt. The German miracle post WW2 was made possible by the allies avoiding repeating the mistakes WW1. Instead of punishing Germany with crushing debt, they were allowed to exit from the war debt free giving them the ability to invest in infrastructure, industrial plant and public goods and services.
JGW has refused to answer the problem that Hudson describes in detail; How do you avoid the non-productive rentier economy from wrapping and consuming the productive economy without a debt rebalance? I don’t expect an answer to that historic problem but instead a lot of personal opinion on how it ought to be.