From a monetary policy perspective, there isn't a difference.
The fed prints money when spending. The Fed "un-prints" money when collecting taxes. As long as spending outruns tax collection, the fed is net-net printing money and causing monetary inflation.
If the fed clears the debt, then the $10k that the debtor owed to the government (or a bank) becomes $10k of cash that remains in circulation, whereas had they paid the debt instead, that $10k of cash would have exited circulation (un-printed) if the debt was held federally, or simply circulated if the debt was held by a bank. Either way, the Fed is creating net-net $10k additional dollars in circulation that were not there before.
From a monetary policy perspective, there isn't a difference.
The fed prints money when spending. The Fed "un-prints" money when collecting taxes. As long as spending outruns tax collection, the fed is net-net printing money and causing monetary inflation.
If the fed clears the debt, then the $10k that the debtor owed to the government (or a bank) becomes $10k of cash that remains in circulation, whereas had they paid the debt instead, that $10k of cash would have exited circulation (un-printed) if the debt was held federally, or simply circulated if the debt was held by a bank. Either way, the Fed is creating net-net $10k additional dollars in circulation that were not there before.