{"id":34292,"date":"2018-05-16T06:21:08","date_gmt":"2018-05-16T11:21:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34292"},"modified":"2018-05-16T06:21:08","modified_gmt":"2018-05-16T11:21:08","slug":"what-if-we-just-wiped-out-all-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34292","title":{"rendered":"What If We Just Wiped Out All Debt?"},"content":{"rendered":"
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What If We Just Wiped Out All Debt?<\/a><\/h3>\n<\/div>\n
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QUESTION:<\/strong> Hello Marty<\/p>\n

I am hoping you will print this in your blog.<\/p>\n

Everyone knows that Govt\u2019s\/Banks print money out of thin air and then \u201cowe interest\u201d to this invented money. To avoid an interest payment death spiral why can\u2019t all the Govt\u2019s in the world just tell the banks to pound sand? Why can\u2019t we tell them \u201cSorry\u2026.we are no longer going to make interest payments on money you invented out of nothing\u201d.<\/p>\n

Regards,<\/p>\n

Julie<\/p>\n

ANSWER:<\/strong> I actually get this question often. I understand that the sophistry out there makes it\u00a0sound so easy. Unfortunately, this is nowhere near the mark. The bulk of the lending that leverages the\u00a0money supply is involved in consumer loans. So this really would create a very unfair arrangement that reminds me of the incident with Mark Antony. Everyone talked about\u00a0the bankers and assumed that Julius Caesar would rule that all debt was to be forgiven. Mark Anthony\u00a0believed Caesar would do that so he ran out and bought Pompey estate assuming he would never have to pay for it (see\u00a0Anatomy of a Debt Crisis<\/strong><\/a> it appears, only Julius Caesar ever understood).<\/p>\n

To do what you suggest may sound simple but it would produce riots and blood in the streets. Your pension would be gone because most funds invest in debt. What if you were retiring and bought muni bonds\u00a0to live on because you were told they were tax-free? Perhaps you could not sell your house to retire because the buyer could not get a mortgage so you took the mortgage. That would mean he now gets the house for free.<\/p>\n

Trust me \u2013 it would be a bloodbath in the streets.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What If We Just Wiped Out All Debt? QUESTION: Hello Marty I am hoping you will print this in your blog. Everyone knows that Govt\u2019s\/Banks print money out of thin air and then \u201cowe interest\u201d to this invented money. To avoid an interest payment death spiral why can\u2019t all the Govt\u2019s in the world just […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,195,1580,5479],"class_list":["post-34292","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-debt","tag-debt-jubilee","tag-martin-armstrong"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34292"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34292\/revisions"}],"predecessor-version":[{"id":34293,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34292\/revisions\/34293"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}