October 4, 2011 in Finance
Henry Garmin from the Spirit of Jubilee website commented on my previous post where I suggested that all debt be forgiven. He said, “The debt that needs to be canceled is the usurious portion of debt, fraudulent debt, compounded debt that everyone knows will never be repaid.
“Debt incurred for productive purposes, debts between businesses, debts of love between friends, families, lovers, debts owed to those creating positive solutions need to be maintained. Debt is simply obligation and agreement.
“Agreements can be amended. Better agreements, better covenants can be initiated. New systems of credits, debt-free money for productive, life enhancing innovations need to be created to take the place of an abusive debt system that is getting increasingly desperate. It’s time to jubilate. Keep shifting into the new way of thinking.”
Mr. Garmin and I have since traded emails. He is clearing his plate of current responsibilities so he can encourage a jubilee declaration in 2012. I’ll keep you posted on his progress.
By the way, he isn’t the only person calling for a jubilee. Numerous people are pushing for the removal of odious and usurious debt. My opinion is that they don’t go far enough.
That’s why I call my idea a “Grand Jubilee” and call for the removal of all debt. Here is my thinking.
A Grand Jubilee that forgives all debt would, by necessity, force the creation of a new currency. The reason is simple. The United States Dollar, the world’s dominant currency, is built upon debt. If all debt is forgiven, the dollar would become worthless overnight because it is a Federal Reserve Note, a debt instrument.
This would allow a gentle transition through something that many financial experts believe is inevitable: the collapse of the dollar as a currency system. Many economists speculate that a sudden collapse would produce severe inflation. They assume it will cause great catastrophe as stores run out of food, transportation systems break down, and people starve to death.
However, if we carefully planned this collapse through a Grand Jubilee, we could transition without the drama. We could put shock absorbers on the reboot of our current economic system.
The cancelling of just some of the debts is too close to our current paradigm of operation. Someone will have to make the decision of which debts are odious and usurious. All lenders will think their loans are fair. All borrowers will think theirs are odious and usurious. This is not a change for our current situation.
I have a simple two-step proposal.
I propose all lenders forgive all debts. This would reboot the money system.
I propose all borrowers determine a fair way to repay them. The new trade system would come out of this. It may be barter. It may be gold. It may be something we haven’t thought of today.
Whatever it is, it would come out of the Spirit of Jubilee and I think that would be better that what we have today.
What do you think? Leave your comments below.