What Will 'Debt Jubilee' Look Like?
NEW YORK ( Bullion Bulls Canada) -- Debt Jubilee: Countries wiping the slate clean by burning all of the bad debts created by the bankers and politicians. It could happen. It has happened. However, "we the people" will face a different future.
The economies of the West (with few exceptions) are all
Virtually all Western nations are sitting with their highest debt-loads in history, meaning their debt-to-GDP levels are their highest ever -- and most are well past the level that constitutes an official "debt crisis." Worse still, all of these debtors have debts that are increasing at a much, much faster rate than economic growth (and this gap continues to increase).
In other words, those nations that are already insolvent have no rational hope of ever becoming solvent again; while those nations that are merely "nearly insolvent" have no rational hope of avoiding insolvency. Yet we have this collection of debtors assuring us again and again and again that they are "bailing out" each other.How is this possible? It's not. As an elementary premise of arithmetic/logic, it is impossible for one debtor to ever "bail out" another -- directly. In fact, there are only two ways in which one debtor may attempt/claim/pretend to be "bailing out" another debtor: a) borrowing more money one's self, and then giving (i.e., gifting) it to the other debtor;
b) "kiting a cheque," and then giving that (illusory) "money" to the debtor. However, our governments have never claimed/admitted doing either one of those things. Here is what our governments are telling us. They claim to have "bailed out" these insolvent debtors (starting with Greece) by lending them more money. Again, as an elementary premise of arithmetic/logic, it is impossible to "bail out" an insolvent debtor by lending that debtor more money. Not only does it make the insolvent debtor even more insolvent; it instantly turns that debt-market into an open Ponzi-scheme. Only ever-increasing quantities of new loans can delay implosion, and the longer the Ponzi-scheme is perpetuated the more damaging/devastating the ultimate collapse must become.
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