Will Debt Forgiveness Work?

UK Telegraph: ‘Ben Bernanke needs fresh monetary blitz as US recovery falters’. The article claims the Fed Chair now wants to more than double the Fed balance-sheet monetary base from $2.2 Trillion to $5 Trillion, after almost tripling it from 2008 to 2010. With a 9% decline in the monetary base this year, the alleged economic recovery, measured by Consumer Sentiment, Cost of Living, Employment, Foreclosures, GDP, Home sales, Manufacturing, and Tax Revenues, is rolling over again.

Or.... maybe we really do not understand economics. What about the year of Jubilee?

"In the Jubilee Year of Leviticus 25, those enslaved because of debts are freed, lands lost because of debt are returned, and community torn by inequality is restored. U2’s Bono invested a lot of time with the Jubilee2000 organization and World Economic Forum, arguing the best way to promote the development of poor countries was to forgive their debts. Bono met with Conservative Senator Jesse Helms, saying Helms wept when they spoke: “I talked to him about the Biblical origin of the idea of Jubilee Year…. He was genuinely moved by the story of the continent of Africa, and he said to me, ‘America needs to do more.’ I think he felt it as a burden on a spiritual level."

I would argue that the year of Jubilee not only applies to Africa but to the each economy, each nation.

Debt with its affect of constant compounding brings down an economy. A plan break, a restart of the debt economy is required.

The western world, "socked silly by auto loans, credit cards, higher food prices, medical care, mortgages, taxes, utility bills and nagged by the suspicion their corporation, government or union already spent their pension or Social Security before laying them off." 

The cupboard is empty. 



Will Debt Forgiveness Work? — Rick's Picks#more-23803