Category Archives: Debt

Clean Slate Debt Cancellation or Global Desolation

By the late Boudewijn Wegerif

DESOLATIONIn the hereon following article I imply that “there was a call on Judaism to establish a tradition of clean slate debt cancellations and land restitution, and on the followers of Jesus to see his remonstration against the moneychangers and merchants in this light.” . And I trust that you will be left asking after reading it, as I am after having written it: What does it mean for Judaism that it failed the call and for the followers of Jesus that they did not take it up? What does it mean for our humanity and the earth if we do not all of us now together, out of all belief systems, clean slate the economy?

An ever-worsening desolation is the clear answer of the Bible and plain common sense.
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The Inevitable Jubilee- National Debt is a Cancer

from “The Inevitable Jubilee
By Cris Sheridan

National debt is a cancer. It starts out small and then multiplies. Eventually, it reaches a point where it can’t be ignored, spreading itself through every layer of the economy until it threatens the life of its host.

Many would say that the U.S. is at this point. Having accumulated more debt than any other nation in history, there is little hope that it can ever be paid back without a combination of some very drastic and unrealistic measures. On greater inspection, paying it back is probably never going to happen and may even be mathematically impossible to do so.

Read more at:

The Inevitable Jubilee | Cris Sheridan | FINANCIAL SENSE

In light of the similarities between then and now, some prominent names are beginning to warn that the only cure for our troubling situation is some form of massive debt relief, or Jubilee—a biblical commandment given to Israel to wipe away

Publish Date: 10/31/2011 1:00

The Inevitable Debt Jubilee- Audio & Video with Economist Steve Keen

KMO welcomes anti-economist Professor Steve Keen to the C-Realm to detail the limitations of neoclassical economics as well as popular misconceptions promulgated by advocates of alternative economics. Professor Keen disposes of the “moral hazard” argument against the inevitable debt jubilee and provides some advice for weathering the looming economic tumult. Music by Fernando Tarango.

Reality: not just a concept anymore.: C-Realm Podcast #284

Professor Keen disposes of the “moral hazard” argument against the inevitable debt jubilee and provides some advice for weathering the looming economic tumult. Music by Fernando Tarango. Download episode. Posted by

Publish Date: 11/17/2011 2:25

Economist Steve Keen; bankrupt banks, nationalise financial system

Should government pay off our debts? Economist Steve Keen says we are already in another Great Depression. He advocates bankrupting the banks, nationalising the financial system and paying off people’s debt Economist Steve Keen interviewed on BBC HardTalk.

Jubilee Day – Economic Progress one Funeral at a Time

Jubilee Day the Novel

Jubilee Day the novel by Michael Sky

In the novel Jubilee Day, the book about “when America changes it mind about all the big things”, a lot of the “dominators” start dying off  quickly and rather mysteriously.

Is it just a coincidence that the time frame for the deaths in this novel is the same as this month of November, 2011?

The website for this novel by the late Michael Sky outlines the story as follows:

At 8 a.m. on a Sunday morning in November, 2011, an email arrives at every major media outlet and hundreds of online blogs.

A Message for the Dominators

Six will die, every day, until you start sharing wealth and power.

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Debt Driven Growth is a Huge Flaw in the World Economy

Bill Gross: We’ve Discovered That The World Had A ‘Flawed

What has become obvious in the last few years is that debtdriven growth is a flawed business model when financial markets no longer have an appetite for it. In addition to initial conditions of debt to gross domestic product. In an editorial published Nov. 16th in the Financial Times, Gross explains that the euro area’s “growth-snatching” policies—which allowed countries to use leverage in place of sustainable growth—are not just European problems. Markets are just beginning to recognize this.

Publish Date: 11/16/2011 6:03

Occupy Boston- Jubilee is When Debts are Declared… Disappeared

Shred Your Debts Jubilee!

Shred Your Debts Jubilee! Talking  about Jubilee for debts at Occupy Boston…

“No society in history has gotten to the place where we are today where the poor owe the rich so much and not had a total social breakdown, returned to actual chattel slavery, or had a jubilee. You know what a jubilee is? Jubilee is… debts are declared…. disappeared. I think we should word towards a space of jubilee and I was thinking what were some of the big moments in the Vietnam War effort. Think of some of….”

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The Return of Debtors Prison in America

As if life wasn’t already tense enough for Americans who can’t pay their debts, collection agencies are now taking advantage of archaic state laws to have some debtors arrested and sent to jail. This is outrageous. Corporations default all the time. On the other hand, go to the end of this post, to view a video by David Walker who speaks nostalgically about debtor’s prison….

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Recipe for Armageddon: FDIC to back $75 Trillion Of Bank Of A’s Derivatives Trades

Bank of America Dangerous Derivatives Deal

The Fed is supporting Bank Of America and its $75 trillion in derivatives bets. If BOA crashes, the American government/taxpayers will be left to clean up the mess. The Young Turks host Cenk Uygur explains from the Occupy Wall Street protests in New York …

HOLY BAILOUT – Federal Reserve Now Backstopping $75 Trillion Of Bank Of America’s Derivatives Trades

This story from Bloomberg just hit the wires this morning.  Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.

This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers.  Bank of America didn’t get regulatory approval to do this, they just did it at the request of frightened counterparties.  Now the Fed and the FDIC are fighting as to whether this was sound.  The Fed wants to “give relief” to the bank holding company, which is under heavy pressure.

This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.  You will also read below that JP Morgan is apparently doing the same thing with $79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.

What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan.  Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.

This is a recipe for Armageddon.  Bernanke is absolutely insane.

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Unsustainable Debt – Reality is Less Disturbing

credit crisis

Reality of Unsustainable Debt is Less Disturbing Than You May Think


Excerpts from John Raulston Saul, The Doubter’s Companion: A Dictionary of Aggressive Common Sense.

National debts are treated today as if they were unforgiving gods with the power to control, alter and if necessary destroy a country. This financial trap is usually presented as if it were peculiar to our time, as well as being a profound comment on the profligate habits of the population. The reality may be less disturbing.

1. The building up of unsustainable debt loads is a commonplace in history. There are several standard means of resolving the problem: execute the lenders, exile them, default outright or simply renegotiate to achieve partial default and low interest rates.

2. There is no example of a nation become rich by paying its debts.

3. There are dozens of examples of nations becoming rich by defaulting or renegotiating. This begins formally in the sixth century BC with Solon taking power in debt-crippled Athens. His organization of general default – “the shaking off of the burdens” – set the city-state on its road to democracy and prosperity. The Athens which is still remembered as the central inspiration of WESTERN CIVILIZATION was the direct product of a national default. One way or another most Western countries, including the United States, have done the same thing at some point. Most national defaults lead to sustained periods of prosperity.

4. The non-payment of debts carried no moral weight. The only moral standards recognized in Western society as being relevant to lending are those which identify profit made from loans as a sin. Loans themselves are mere contracts and therefore cannot carry moral value.

5. As all businessmen know, contracts are to be respected whenever possible. When not possible, regulations exist to aid default or renegotiation. Businessmen regularly do both and happily walk away

7. The one major difference between private and public debt is that the public sore cannot be based upon real collateral. This makes default a more natural solution to unviable situations.

11. Civilizations which become obsessed by sustaining unsustainable debt-loads have forgotten the basic nature of money. Money is not real. It is a conscious agreement on measuring abstract value. Unhealthy societies often become mesmerized by money and treat it as if it were something concrete. The effect is to destroy the currency’s practical value.
we are imprisoned in a linear and managerial approach which denies reality, to say nothing of experience. Money is first a matter of imagination and second of fixed agreements on the willing suspension of disbelief.

In other words, it is possible to approach the debt problem in quite different ways.

15. Our central problem is one of approach. For two decades governments have been instructing economists and finance officials to come up with ways in which the debt can be paid down and interest payments maintained.

No one has instructed them to propose methods for not paying the debt and not maintaining interest payments. No one has asked them to use their creativity in place of a priori logic.

16. Were the members of the Group of Seven (G7) each to pool their economists and give them a month to come up with modern versions of default, we might be surprised by the ease with which practical proposals would appear.

Let them Default- the Debt Crisis Solution

Ann Petifor

Ann is right about default. She needs to plot revolution in England.

Let them default: The Radical Solution to the Sovereign Debt Crisis

Ann Petifor was one of the founders of the Jubilee 2000 movement to cancel third world debt that started in England. She was interviewed Sept. 15 on the Australian Broadcasting Network, the topic being the first world banking crisis, which she also predicted.

Here is an excerpt from the transcript:

ANN PETTIFOR: There is going to be a crash. We can either allow it to happen as it is at the moment in a chaotic and catastrophic way, or the central banks and other policymakers can decide that they’re gonna manage the restructuring of debt. Because the fact is the world is burdened by too much debt, too much leverage. It’s gonna have to be managed downwards. We can either fold our arms and say leave it to the invisible hand and allow the invisible hand to destroy our economies chaotically, or, as policymakers we can take action and manage it in as orderly a way as possible. It is gonna be painful. There’s gotta be restructuring, there’s gotta be rebalancing. It’s not gonna be easy, and the bankers will scream blue murder. But we’ve gotta make our choices.

STEPHEN LONG: Not the choices made in 2008, when governments bailed out insolvent banks, but demanded little or nothing in return.

How could it have been done differently?

ANN PETTIFOR: We could’ve said to the bankers, “We need to bail you out. This is a systemic crisis. We hate what you’ve done, but off course we have to bail you out, but there are terms and conditions. Thou shalt lend to real businesses doing real productive economic activity. You will not speculate and you will lend at very low rates of interest, and we will take away your license if you don’t. And by the way, you can’t pay yourself bonuses.” We said nothing of the sort. Our governments just simply, in a state of shock, maintained the system as it was prior to crisis.

Default I can agree with. Debts that can’t be paid won’t be paid. However, I think that Ann Petifor doesn’t go far enough. Bailing them out after they’ve failed? We need new institutions. Bailing out failed businesses that are guilty of crimes falls short of a jubilee. Falls short of a revolution. However, in her next interview she gets more radical:

Today another interview with Ann appears on Salon in an article entitled Jubilee 2012? about the Occupy Wall Street movement and its parallels to the Jubilee 2000 campaign. Ann calls for a second American Revolution. This cross-fertilization of the British and American Jubilists is a great thing, and I think it’s time for the  Jubilee 2000 alumni to concentrate on sparking a British revolution. I hope that’s what she has in mind. A jubilee for you and me, as well as the Third World. The Bank of England has been the dominant oligarchical institution of oppression around the globe for the past 400 years. Are there no poor, no debt enslaved in jolly old imperialistic England?