Thursday, February 19, 2009

Legal Aspects of Jubilee

Clearly, debt write-off is the only economic solution to debt deflation, but some question under what legal authority it would be done. Basically, it is as simple as nationalization of banks. Once banks are controlled by the government, Jubilee can occur by simple decree.

Or, instead of Jubilee of debt cancellation through nationalization of banks, we could alternatively have a Jubilee of full-payment. In short, our government could simply write checks to help everyone pay their debt off. Consider it a form of mass bailout, rather than mass default. The federal government already has the ability to print and give away money, so there we go. The US federal government can simply write a check to each individual citizen in America for the amount of their debt.

It is the exact same concept as canceling the debt, except it would involve inflation rather than deflation. Everyone seems to be much more comfortable with the idea of inflation and more money, than with the idea of deflation and less money. Well, whatever. Jubilee, all debts shall be forgiven! Who can complain, since everyone would get their money?

8 comments:

Allen Charles Report said...

I have addressed the banking meltdown in my blog article. A better Plan to save Wall Street and the taxpayers" money. And the solution to the RECESSION with my article addressing the WORLDWIDE DEBT.
The Worldwide DEBT is the problem. My belief is after a worldwide debt removal (that is correct REMOVAL) would absolute revitalize the economy. One result will be an adjustment in the value of currencies with the dollar being adjusted downward given us back some ability to compete in manufacturing costs or at the very least making products we produce in America more competitive here at home. We will not ever likely be on par with Chins, India and other countries but if some progress is not made towards revitalizing manufacturing in our country we are finished as a world power. In my article The Cause of the Great Depression I refer to the Fed. Chairman under FDR. The fruit of our economy has to be spread across the economy and not retained by a very small percentage of our population. To support any economy and especially one that depends on the spending of the population, the general population has to have enough money to spend and buy the goods being manufactured. My biggest fear concerning our nations ability to continue to be a world leader is when some of the now third world countries develop their own manufacturing base to the point that their own people can by their own goods and if we look at Chins today they just grew past the USA as the largest car market on the planet

Allen Charles
http://allencharlesreport.blogspot.com/
.

Allen Charles Report said...

I have addressed the banking meltdown in my blog article. " A better Plan to save Wall Street and the taxpayer's money". And the solution to the RECESSION with my article addressing the WORLDWIDE DEBT.
"The Worldwide DEBT is the problem". My belief is after a worldwide debt removal (that is correct REMOVAL) would absolutely revitalize the economy. One result will be an adjustment in the value of currencies with the dollar being adjusted downward giving us back some ability to compete in manufacturing costs or at the very least making products we produce in America more competitive here at home. We will not likely be on par with China, India and other countries but if some progress is not made towards revitalizing manufacturing in our country we are finished as a world power. In my article "The Cause of the Great Depression" I refer to the Fed. Chairman under FDR. The fruit of our economy has to be spread across the economy and not retained (horded) by a very small percentage of our population. To support any economy and especially one that depends on the spending of its population, the general population has to have enough money to spend and buy the goods being manufactured. My biggest fear concerning our nation's ability to continue as a world leader is when some of the now third world countries develop their own manufacturing base to the point that their own people can buy their own goods and if we look at Chins today they just grew past the USA as the largest car market on the planet

Allen Charles
http://allencharlesreport.blogspot.com/
.

Anonymous said...

It would have to be a constitutional amendment. I have drafted one. I have sent a copy along to Michael Hudson as well.

We need to get on this; we may have only a limited window of opportunity.

Contact me: jregan3@rochester.rr.com

Mr. Regan said...

Any thoughts on the constitutional amendment idea? Anybody interested?

The problem is the 14th amendment, section 4, states that the debt of the United States "shall not be questioned". You can't have a legally binding debt cancellation or forgiveness without repealing that provision.

Justin said...

Mr Regan, we can cancel debt through targeting stimulation checks. We don't need to cancel it, just pay it all off. No contracts or constitutions violated!

Mr. Regan said...

Hi Justin.

I don't think it's that simple, exactly, but it might not be too much more complicated. Certainly, issuing checks would be unworkable. Maybe a law could provide that all debts are "deemed" paid. Even that would have rather enormous implications, such as: what about that promissory note from uncle ted? Does it basically just get treated as cash? Then how about a million people generating a million promissory notes to each other at a million dollars a pop, and then we just credit them all?

There's a lot to think through here. I'm not saying you're wrong; there may be advantages to the idea that outweigh the difficulties, and the difficulties could be addressed somehow, maybe.

It's going to take some mental effort. I'll mull it over.

Allen Charles Report said...

To Mr REGAN

Please review The Worldwide DEBT is the problem.
http://allencharlesreport.blogspot.com/search?updated-min=2008-01-01T00%3A00%3A00-08%3A00&updated-max=2009-01-01T00%3A00%3A00-08%3A00&max-results=7

I think you would have to agree it could be legally done.

Allen Charles

Mr. Regan said...

The problem is US Constitution Amendment 14 section 4. It says that the debt of the United States "shall not be questioned".

In the US, at least, canceling government debt would take a constitutional amendment.

That can be done, of course. Not that it's easy.