Tuesday, January 20, 2009
What a Jubilee Would Do
In a Jubilee, you get to keep all of your real asset (cars, homes, etc). You would lose you paper assets if they involve debt to someone else. You would not lose your savings accounts, within the 250K FDIC coverage. The banking industries would be hit hard, obviously, but could quickly rebuild based on the new spending, saving, and investing, as the real economy was jumpstarted. Imagine how the economy would take off if no one had any house payments, no car payments, no credit card payments, and our gov't no longer had to pay interest on its debt. As you can easily see, there would be little credit, but lots of savings. Governments would be forced to run balanced budgets, as well as a balanced trade account. The upside, for just about everyone, would be huge.