That kinda sounds like a dumb misunderstanding. Let's say France lend 20 mil to the Netherlands. Germany invades the Netherlands & annexes it. Now the Netherlands no longer exist & such Germany doesn't have to pay the loan that the Netherlands own. But I suppose that the author wanted that extra tension, I mean, war through baseball is already a weird concept, but if those rules are made by an overpowered Godly creature, then that at least has some rationality behind it.