Friday, February 6, 2009

Jubilee Ends the Destructive Addiction to Debt

A common objection to Jubilee is the worry that it would destroy money. Let's get something straight: the main reason we need so much money is because we have so much debt! Arguing that we can't have Jubilee because it would destroy the money supply is a self-defeating circular argument, surrendering to the chains of debt enslavement. Without the debt, there would be a natural deflation of prices, and the economy could proceed on a savings, investment, and balanced-budget basis, rather than an inflated, speculative debt basis. Without the massive debt, the economy doesn't need the inflated money supply.

Everyone who objects to Jubilee by saying something like, "without loans, we couldn't do business," is also tied up by faulty debt logic. The fact is, business currently needs constant loans because it is burdened with constant debt. If the economy is freed of debt, businesses won't need all the loans. Debt is a cancer on the economy, and it constantly feeds on itself, replicating throughout the system out of control. The more you have, the more you need.

Saying we can't get rid of debt because it would destroy money and dry up lending is no different than a junkie telling you why he can't get off the drugs. The more drugs he has, the more he needs, and the less he can imagine getting off. However, his long-term health is being destroyed, and his best option is simply to stop. Just like our debt-addicted society: the more we have, the more we need, and the less we can imagine doing without. For our long-term health, our best option is simply to stop.

Debt isn't just bad because of some moral axiom. Debt is bad because it feeds speculation and increases malinvestment. When debt gets large enough, speculation and malinvestment can threaten the normal functioning of the economy, as we see today. People are starting to realize that the collapse of our productive economy, and the consequent collapse of government services, is becoming a threat to our very health, safety, and way of life. The stakes could not be higher. We must cancel our debt as soon as possible, or like a parasite grows too big and kills its host, debt will destroy our economy.

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