Yea I agree, I took out Magnar and every last city had negative income, so perhaps they operate on a state of denial, ignore the mounting debt and it will go away
Maybe it works for other things too *proceeds to ignore enemy factions, automatically winning game*
In your fantasy EWOM universe, Magnar authorized a central bank called the Federal Reserve of Magnar and gave control of it to the private Merchant Cartel. The Federal Reserve of Magnar created a fiat gildar currency - Magnar gildar is not a piece of tangible gildar or even backed by gildar. It is a piece of paper based on faith. When Magnar overspends this fiat currency, the Federal Reserve Bank of Magnar creates additional currency out of thin air and then lends it to the Magnar government via bonds, at interest, backed by the Magnar taxpayers. What the Magnar taxpayers don't know is that the entire scheme will eventually fail because the amount of gildar created out of thin air does not equal the amount of gildar needed to pay the principle and interest on the debt. Quite the racket. Don't get me started how Magnar has a trade deficit with Altar and how Altar uses those fiat gildars buying up additional Magnar sovereign debt...
Thankfully this magical currency only exists in your fantasy land of Magnar EWOM and not in real life. As you can see the Merchant Cartel is the real power behind Magnar.