I'm still confused as to why a country could not just increase the money supply to pay off its own debts. For example, if the country gains $150 as income such as gdp, gni, exports etc, but has an expenses of $300, meaning it has a $150 deficit by which they need to sell their assets to foreign investors or get a loan from foreign currencies to pay, what's stopping them from producing more of their own money to pay the deficit?
I mean, the money used to pay for the domestic expenses (such as military wages, medical benefits and all) by selling assets or getting loan from outside will still be in the same dollar currency, not in foreign currency.
So if the concept at the end is the same, why not just make more money ourselves, pay the expenses and save ourselves from selling our assets and getting loans from others?
I don't really see the connection between it and inflation. Because if producing more money to pay the deficit is the cost of inflation and price hikes, what's the difference between it and getting a loan to pay the expenses? The balance at the end remains the same, so why would the currency value depreciate?