Michael Hudson and Charles Goodhart team up.
Longish and detailed but an easy read.
Counterpunch
Could/Should Jubilee Debt Cancellations be Reintroduced Today?
Michael Hudson – Charles Goodhart
also
Counterpunch
Could/Should Jubilee Debt Cancellations be Reintroduced Today?
Michael Hudson – Charles Goodhart
also
Irrespective of what we may think of Syria, this is little but a full-scale assault on international law and the normative system embedded in the UN Charter that has taken decades of hard work to build, a fundamental cornerstone of the management and civilizational development of the world order system.
Seen in comparison with the other attempts at undermining the UN – which began in the 1990s in Bosnia-Herzegovina – this should be a cause of deep concern among people in the truly civilizational corners of our world.
And it can’t be sold to the world under the headline of a Responsibility to Protect.…Naked power grab.
The New US Syria “Strategy”, a Recipe For Continued Disaster
Jan Oberg
12 comments:
I say forgive the auto loans but not the student loans....
Never happen, it is a primary tool of enslavement.
A debt jubilee is a cost imposed on creditors. It would just mean creditors take into account that cost and quadruple the rate of interest for loans.
Just like US healthcare system Ralph....
"A debt jubilee is a cost imposed on creditors. It would just mean creditors take into account that cost and quadruple the rate of interest for loans."
At which point the state can issue loans as 'lender of last resort' and put them all out of business. The money lenders are not in charge. They are agents of the state.
Similarly governments should never borrow in foreign currencies, and entities that can go bankrupt should avoid borrowing in a foreign currency. Certainly they shouldn't be bailed out by the state if they get into trouble - they should always go through administration so the loss is forced onto the foreign lenders and the foreign money destroyed.
"The money lenders are not in charge"
If only ...
A debt jubilee is a cost imposed on creditors. It would just mean creditors take into account that cost and quadruple the rate of interest for loans.
The projected defaults are already priced into the rates that creditors charge based on risk.
People with bad credit can still get credit from pay-day lenders at several hundred %.
Perviously, most people that where "unbanked" couldn't get credit, and to have a banker required being well-off.
Now credit is available at a price that covers the lenders' risk.
I know this might sound like a silly question, but what risk is there if they create the money out of nothing? Okay, they have their overheads, and then they might bash 5% on top for profit. Then I understand it.
When Greece went bankrupt I thought so what, the banks just created the billions out of nothing, so just write it off, who's lost anything?
They do create money out of nothing. It's called "debt".
What they don't want anyone to realize is that the could just as easily "create" money to erase debt. Thus the short-lived idea for trillion-dollar coins under BO.
I like Neil's idea of putting them out of business. The whole things a racket, including privatisation. That was sold as the people's capitalism, but the One Percent ended up with all the shares. They dream about the billions they could make if the Tories privatised the NHS, but they and their media friends haven't been able to sell it to the public because of the dreadful American system.
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