Debt Jubilee demonstrated in China

China again demonstrating the principles of jubilee in action.   Previously, they had been raising the reserve ratio to suck money out of the banking system to cut off inflation.  Now they are practicing large-scale debt relief of local governments.  

 

China has a number of advantages that allow them to accomplish these feats of economic sanity.  For one, they are not ruled by an internationalist banking class.  They are Communist, and they are Nationalist.   Their sole concern regarding economic policy is what is good for their people.    They are living exemplars of the "People First" concept.  Our guiding mantra of "profits first" is anathema to them. 

 

Therefore they do not have a parasitical rentier class sucking their blood.  If an economic decision is good for the economy, such as debt write-offs, they do it.   Simple, easy.  The only thing preventing us from doing something similar is the domination by the parasites of our economic and political system.

 

Jubilee Theory in Action

 

The economic theory is simplicity itself: rather than let bad debt slow down economic development, the government simply cancels the debt or pays it off.   In the Chinese case, it is done in partial steps, with some being written off and some restructured and sold. 

 

When the government issues the national money, it has total and complete Jubilee power.   The sovereign control of the money supply is, in fact, the greatest power that government has, probably greater than its military/police power.  Certainly greater than its legislative power.  The fact is, he who has the money controls the laws and the military. 

 

Medieval Concept of Commodity Money

 

Many people have a hard time "getting" the Jubilee concept, because they still harbor the medieval belief that money is a thing.    In fact, money is not a thing, it is just a trick to get us to work together.   Debt is also a "social illusion" of the same variety.   

 

The Chinese elite realize this, and they use their monetary power accordingly, for the benefit of the people.  Our elite realize it too, but they use their monetary power for personal enrichment and political control, keeping the people in the dark.  

 

 

 

quotes from the article below (http://www.reuters.com/article/2011/05/31/us-china-economy-debt-idUSTRE74U3CO20110531):

 

China's regulators plan to shift 2-3 trillion yuan ($308-463 billion) of debt off local governments, sources said, reducing the risk of a wave of defaults that would threaten the stability of the world's second-biggest economy.   ...

Many analysts see China's pile of local government bad debt as a major risk to the economy, especially as growth slows.

But few see a widespread banking fallout as they believe cash-rich Beijing can step in to soak up losses. Still, the scale of the plan is much bigger than a government move in 1999 to clear debt from the books of large state-owned banks.