[imtringued]

It's more precise to say that private assets are public sector liabilites, in other words, they are outstanding taxes. It's money the government hasn't bothered to collect yet. When you look at the tax code you will notice very quickly that letting money sit and do nothing is not taxed, hence a tax minimizer can always avoid non-demurrage taxation, which means the upper bound on government debt is infinite.

It's simply not mathematically possible to pay the debt off without demurrage.