Tuesday, April 12, 2011
Don Baker calls for National Debt Repudiation - the Jubilee plan revisited
The irony here is that I was pointing out the necessity of Jubilee two years ago on Seeking Alpha, and I got lots of thumbs down. Now major articles are being published there agreeing with me (http://seekingalpha.com/article/262724-defaulting-on-debt-is-not-the-end-of-the-world)
Jubilee is totally logical and practical. Debt is killing the economy currently, and it is only going to get worse. The sooner we declare the Jubilee, the better off our real economy will be. The longer we wait, the more severe will be the recovery.
To be precise, the Jubilee plan is different than default. The Jubilee plan means that all debts are PAID OFF. The government simply writes electronic checks to pay off all debt.
Simultaneously, the government raises the banking reserve ratio, to soak up all the extra liquidity.
The result: the cancellation of all debts, without the violation of any contracts, without any inflation.
The debt deflation would be over instantly, and the economy could reset. Jubilee!
Posted by Justin at Tuesday, April 12, 2011