Joined: 25 Jul 2005 Posts: 15161 Location: St. Pauls, Bristol, England
Posted: Mon Feb 18, 2013 12:12 am Post subject: Writing off debt - the only alternative to war
The only solution is Debt Cancellation. You can either cancel all bad debts in an organized and systematic way or you can do it as they did in the 1930s which led to death by starvation for millions and then to war.
This is a simplified intro to the subject from an American perspective.
Eddie Reborn Into A World With Debt Cancellation
Posted on July 10, 2012 by horse237
Mrs Jones: Hello. You are Edward A Robinson. Have a seat. We can talk confidentially Mr Robinson. I have your details on a CD the New Government sent me. I am your adviser here at the bank. You were released from state prison on a federal amnesty for non-violent drug offenders. You are here to make arrangements for your share of the federal debt cancellation program. As you know, all federal, state and local debts have been abolished. Every adult citizen who is not in custodial care will receive a $20,000 credit to be used against all existing debts and outstanding utility bills. You were released this morning so you will be receiving that credit as soon as we have created cooperative trusts. You are 23 years-old so you will be grateful you never will go onto Social Security. I only have a little bit more to explain and you can ask questions in a minute. What we are doing is not inflationary. The idea of giving everyone a $20,000 credit write down instead of giving Bailouts to Wall Street bankers was originated by Dr Steve Keen of Australia. But the coup leaders invaded a lot of island nations and took more than 20 trillion dollars in assets from the bankers as part of a restitution program. They also took tens of trillions of dollars from government agencies that were hiding the money from taxpayers. Your share is $20,000. You have no debts. No credit cards and mortgages in prison. Anyway I can have you sign this paper here. It is a zero interest 90 day loan with a ten dollar origination fee. If you sign, I will give you a slip of paper that authorized the teller to give you $300 cash right now. It will be paid off when you receive your credit in a month or so. Now do you have any questions?
Eddie: People call me Eddie. My father named me for Eddie Robinson the famous football coach at Grambling College. They told us at orientation when they released us that the bank would counsel with us about jobs and bills.
Mrs Jones: Eddie, my name is Amanda. I met your mother last week. I paid her utility bill with a $300 loan advance. The military has told us that there will be no more mortgage foreclosures and absolutely no utility cut offs until the credit write downs are completed. There are jobs everywhere now. Taxes have been cut. They found enough money in the Cayman Islands to pay all of our income taxes for the next 3 years. The first $100,000 for a family of four is tax free. And the coup leaders announced that any citizen qualified to do a job can apply for and must get a job held either by anyone with a Green Card or by an illegal alien. It is similar to the law after WW II that required employers to hire returning veterans. All restaurants are hiring. And the bag factory. They start at $13 an hour and there are no deductions from your check. Social Security taxes are only paid by employers not younger workers who will never collect it. The coup leaders have released new Tesla Technology to generate electricity. They will be averaging utility bills nationwide to cut our rates by 1/3rd each year until they are 1/3rd of what our bills are now. My advice to you is to get a job right away. Then we can talk about better long term prospects.
Eddie: I was thinking of going to the bag factory as soon as I leave here.
Mrs Jones: The New Government has been working with the churches. They have been holding meetings at 7 PM on Tuesdays and Thursdays to make plans for the future. We have already selected the black member of the city council to be president of our local cooperative trust association where I hope your retirement account will be. It will act as a credit union and make small loans and give you a credit card. It will also sell fire, auto, life and health insurance. All that financial power is for the first time in history in our hands. We have an educational campaign going in the churches. Africans were bought for $20 and sold for $2,000 until the British ended slavery in 1833. But slavery continued after that. The people who used to own the government take a dollars worth of opium from Afghanistan or cocaine from Colombia and sell it on our streets in the US for $2,000. That is slavery. And government debt was a fiction that cost Americans more than a trillion dollars a year in phony interest payments. That was slavery too. Government debt is illegal now. You and I will are part of the first truly free generation. We have plans. We want black people to start businesses. The New Government will be breaking up corporate farms. They will help you to get a farm if you want. There will be lots of construction jobs for American citizens. There is a federal program. And also each state gets their share of 100 billion dollars. Our share is 2 billion a year to rebuild the state’s infrastructure. This eliminates any need for state and local bonds which are now illegal anyway.
Eddie: I think I’ll go for the construction work. I was a fry cook but I didn’t like it. I did some construction work in prison.
Mrs Jones: The New Government and the churches want you to rebuild your life one step at a time. If you go to those Tuesday and Thursday meetings, you will meet people who can help you find work or get into a program. They have a mentor program led by men who have had a lot of experience recovering from worse things than what you have faced. I won’t be working at this bank next month. I’ll be going to our local trust to work. You can see me at one of those meetings. And by the way, I see you have a 19 month old son. The New Government has told us that the black slaves had a family formation rate in 1850 that was far higher than today because welfare was set up to destroy us and our families. We need all young men to settle down and to get married. Your son needs you. The New Media and the schools want all young men whatever their race to seriously consider marriage.
Eddie: I was thinking about my son a lot. I haven’t even seen him yet. My mom and my girl have sent me pictures. My girl wrote me in prison and said the New Government will help us buy a house.
Mrs Jones: I’ll have to explain to you the first time home buyers plan and the negative income tax. That $20,000 credit or really $40,000 you and your wife get can be used as a down payment on a house. Otherwise it all goes into your retirement account. We will add into your retirement account your share of the profits on the credit union, the credit cards, the sale of insurance and your employer will add his share of the Social Security payroll tax. You will not pay taxes. A married couple where they both work will be guaranteed an annual income of $40,000. If you make less, the IRS will credit your employer who will pay you the difference. If you were single and made only $18,000 a year you would get 1/52nd of that $2,000 paid to you each week. There is a child bonus program. If your wife gets a job and makes the minimum of $20,000 a year or even more, she will get $6,000 a year or $500 a month for the first child and $4,000 a year additional for the second. Nothing for the third and fourth children. So if both of you work, you will have a guarantee of $46,000 a year tax free for the 3 of you and $50,000 a year if you have a another baby.
Eddie: I was thinking seriously about getting married. I just didn’t see how I could ever provide for my family. I told my girl I would see her today after I went to orientation at the bank and then went to look for a job.
Mrs Jones: I almost forgot. Every church in town has started couples counseling classes to prepare you for marriage and parenting. Please attend. If you have access to a DVD player, take this DVD ‘Up From Slavery’. It’s very inspirational. Quite a few really famous black people and even more everyday folk put a lot of love and effort into it. (She hands him the DVD.) Eddie, please send in the next man but give me a minute first. I’ll be expecting to see you at one of those meetings.
Eddie: Thank you Mrs Jones. I am grateful to you and the New Government for giving me a chance.
He walks out.
TJ: Hey Eddie, I ain’t seen you since the judge sent you away. I was a juvenile so I only did a stint at boot camp and then I did some time at the county jail.
Eddie: Hey TJ. Things have changed. I thought my life was over when that judge sent me to prison. It was only 3 weeks after my 21st birthday. That woman in there can do you a world of good. She gave me this DVD ‘Up From Slavery.’ She just loaned me $300. I’ve got to get in line to get paid by the teller. Then I’m going to the bag factory.
TJ: I saw that place on the news. The military shut down the Mexican border until their government agreed to cancel their debts by seizing the bank accounts of the drug cartels. They also made them return the land they stole from the people. The military is giving every illegal alien family $5,000 to go home. And they promised them free water for their farms. That bag factory lost a lot of people at a time when things are booming. My mom and her girl friend want to open a restaurant. She wants me to work in the kitchen. I have to think that one over.
Eddie: You can see me anytime at church. I’m going to sign up for couples counseling. Me and Sharon are getting married. Mrs Jones said you can go in now. I figure you are next. Take care.
Notes: I began writing a series on debt cancellation which explains this in more detail here:
This article speculates about a possible future in which the US military has to mutiny to stop WW III and to cancel debts to save half a billion people from starvation. There is no army willing to kill 500 million hungry people. At least, none I would want to protect me.
Will Brits Approve An American Military Invasion Of The City Of London?
Only mass default will end the world's addiction to debt
As global debt rises off the scale, creditors stand to take a huge hit in a threatened tsunami of defaults
Argentina's Christina Kirshner seems to regard default as a matter of some national pride
It will be you next. Argentina's Christina Kirchner seems to regard default as a matter of some national pride Photo: Reuters
Jeremy Warner By Jeremy Warner7:04PM GMT 03 Mar 2015
In a valedictory speech at the weekend of characteristically Latin American duration – a mind-numbing three hours – the Argentine president, Cristina Fernandez de Kirchner, claimed that her country was the only one in the world to have reduced its national debt over recent years.
I doubt she is right about being alone in this “achievement” – there must surely be others - but even if she is, I’m not sure that reduction in the national debt via the mechanism of default is anything to boast of. Only Kirchner could think this a matter of national pride.
Nonetheless, where Argentina treads, others will surely soon be following. The world is sinking under a sea of debt, private as well as public, and it is increasingly hard to see how this might end, except in some form of mass default.
Greece we already know about, but the coming much wider outbreak of debt repudiation will not be confined to sovereign nations. Last week, there was another foretaste of what’s to come in developments at Austria’s failed Hypo Alpe-Adria-Bank International. Taxpayers have had enough of paying for the country’s increasingly crisis-ridden banking sector, and have determined to bail in private creditors to the remnants of this financial road crash instead - to the tune of $8.5bn in the specific case of Hypo Alpe-Adria. Finally, creditors are being made to pay for the consequences of their own folly.
You might have thought that a financial crisis as serious as that of the past seven years would have ended the world economy’s addiction to debt once and for all. It has not. If anything, the position has grown even worse since the collapse of Lehman Brothers.
According to recent analysis by McKinsey Global Institute, global debt has increased to the tune of $57 trillion, or 17pc, since 2007, with little sign of a slowdown in sight. Much of this growth has been in emerging markets, which were comparatively unaffected by the financial crisis. Yet even in the developed West, private sector deleveraging has been limited and, in any case, more than outweighed by growing public indebtedness. The combined public sector debt of the G7 economies has grown by 40 percentage points to around 120pc of GDP since the crisis began, according to the Bank of International Settlements. There has been no overall deleveraging to speak of.
Where the West left off, Asia has taken up the pace, with a credit-induced real estate bubble that makes its pre-crisis Western counterpart look tame by comparison, much of it fuelled, as in Western economies, by growth in the shadow banking sector.
China’s total indebtedness has quadrupled since 2007 to $28 trillion, according to estimates by McKinsey. At 282pc of GDP, the debt burden is now bigger, relative to output, that the US.
Attempts to rein in this growth have so far proved problematic. The Chinese property market has slowed markedly, which in turn has knocked the stuffing out of the all-important construction sector and its feeder industries. Starved of its regular fix of debt, the Chinese economy seems as incapable of generating decent levels of growth as the mature economies of the West. The addiction to credit has gone global.
In any case, China now seems to have abandoned all attempts at tighter credit conditions. At the weekend, the People’s Bank of China (PBOC) again cut interest rates. It has also announced reduced reserve requirements in an attempt to further reinvigorate credit and prevent a hard landing. It may already be too late. The PBOC’s long-serving governor, Zhou Xiaochuan, will almost certainly soon be on his bike, in apparent punishment for the enforced policy reversal. Credit-fuelled growth, China’s high command seems to have concluded, is better than no growth at all.
Some economists claim not to be too concerned by the explosion in global credit. For them, it is merely the mirror image of rising output, asset prices and wealth. And up to a point, they are of course right. Economies engaged in across-the-board deleveraging find it extremely difficult to grow, as the depression-like conditions afflicting much of the eurozone again remind us. Decent growth requires abundant credit.
But you can also have too much of a good thing. Today’s global economy is plainly a case of it. The world has taken on more debt than it is ever likely to be able to repay, absent of implausibly high levels of output growth or contractionary fiscal consolidation. This, in turn, makes the global economy highly vulnerable to continued financial crisis and balance sheet recession. Too much capacity and too much debt make a poisonous combination.
Credit cycles tend to be much longer than ordinary business cycles, which may have something to do with the cautionary effect that financial crises have on banking practice. It can take as much as a generation for a bank entirely to forget the normal disciplines of prudential risk management, and go for broke. Unfortunately, they always do eventually, once all institutional memory of the last crisis has died off.
A paper by the Bank for International Settlement’s Claudio Borio a number of years ago traced the origins of the credit boom that preceded Lehman’s collapse to the early 1990s. Others might put it as far back as the 1980s. He was, however, talking only about the American credit cycle. Looked at from a global perspective, the real bust has yet to arrive.
Traditionally, governments have dealt with big debt overhangs through inflation and financial repression. In extremis debts are monetised via central bank money printing. It’s the legal, backdoor approach to default. Creditors get progressively squeezed by low interest rates and rising prices. Regrettably, it doesn’t work so well in a deflationary environment, and it doesn’t work at all when the credit is in a foreign currency, hence the apparently intractable debt standoff that afflicts the eurozone. Southern Europe has in effect been borrowing in a hard, northern European currency.
In the early 19th century, more than half of UK incarcerations were for unpaid debts. The debtors’ prisons were filled to bursting. Then came the realisation that excessive debt was as much a problem for the creditor as the debtor, proper bankruptcy laws were introduced, and mechanisms for burden sharing put in place. Creditors found it harder to demand their pound of flesh.
Yet when the problem is as big, and international, as it is today, such solutions become virtually impossible, and unilateral default much more likely. How might the present explosion in debt end? The only thing that can be said with certainty is “badly”. _________________ www.rethink911.org www.actorsandartistsfor911truth.org www.mediafor911truth.org www.pilotsfor911truth.org www.mp911truth.org www.ae911truth.org www.rl911truth.org www.stj911.org www.l911t.com www.v911t.org www.thisweek.org.uk www.abolishwar.org.uk www.elementary.org.uk www.radio4all.net/index.php/contributor/2149 http://utangente.free.fr/2003/media2003.pdf
"The maintenance of secrets acts like a psychic poison which alienates the possessor from the community" Carl Jung
Joined: 25 Jul 2005 Posts: 15161 Location: St. Pauls, Bristol, England
Posted: Thu Feb 16, 2017 3:21 am Post subject:
Britain's national debt poised to hit £1.7trillion - with interest payments approaching £40bn a year
The UK owed £1,698,100,000,000 at the end of 2016 – or £26,000 per person
Experts say mounting debt levels are storing up problems for future generations
Chancellor Philip Hammond has ditched George Osborne's target of balancing the books by the end of the decade
Burden: The UK owed a record £1,698,100,000,000 at the end of 2016
Britain's ballooning national debt rose by £250million a day last year – leaving it just shy of £1.7trillion.
Figures from the Office for National Statistics yesterday showed the UK owed a record £1,698,100,000,000 at the end of 2016 – or £26,000 per person.
Analysts said mounting debt levels were storing up problems for future generations – and argued that interest payments of approaching £40billion a year could be better spent on crucial services such as social care.
The ONS report came as Philip Hammond published a new 'Charter for Budget Responsibility' setting out his plans to bring the public finances back under control.
The Chancellor has ditched George Osborne's target of balancing the books by the end of the decade – and instead promised to do so 'as soon as possible in the next Parliament' which is expected to run from 2020 to 2025.
But the national debt will not start falling until Britain runs a surplus – something that will not happen until well into the next decade under current government plans.
A further £91.5billion was added to the debt mountain last year alone – a staggering £250million a day or nearly £2,900 per second – as the country continued to live beyond its means.
Debts pile up when governments spend more on public services, welfare payments and other projects than they receive in tax.
It took Britain 315 years to rack up its first £850billion of debt, having started borrowing in 1694 when King William III raised £1.2million to wage war on France.
But the next £850billion has taken just over seven years.
The ONS noted that 'debt has been built up by successive government administrations over many years' and is now worth 86.2 per cent of national income.
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