tag:blogger.com,1999:blog-8424267157203564446.post7494811760277531060..comments2022-10-25T09:48:22.092+01:00Comments on Modern Debt Jubilee: Private Debt Stays Behind Closed DoorsJayaravahttp://www.blogger.com/profile/13783922534271559030noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8424267157203564446.post-37054911150919907512012-07-04T10:15:37.609+01:002012-07-04T10:15:37.609+01:00Sure. Let's have a run on the banks. That woul...Sure. Let's have a run on the banks. That would certainly punish the bankers by creating another global credit crunch. Some banks would undoubtedly become insolvent, but then they would apply to the government for more bail out money, which we the tax payers would end up paying back over a generation or so. <br /><br />If we were to act individually we would certainly fail, since we signed a legally binding contract. I don't recommend taking on the bank's legal departments. I suppose one could declare bankruptcy.<br /><br />We'd need some legally sanctioned way of cancelling the debt. And remember that in doing so we don't want to leave prudent people at a disadvantage. People who have no debt, and indeed who have saved money would lose out if we simply cancelled debt. <br /><br />The government run modern debt jubilee--in which money is given to everyone with the proviso that they must pay off debt before spending--would achieve our purpose of not honouring the dishonourable debt in a way that achieved these other goals. <br /><br />Though of course the dramatic decline in cash flow would send some banks to the wall despite their reserves. The government could nationalise their assets, to help recoup the cost of previous bank bailouts.Jayaravahttps://www.blogger.com/profile/06815277098386812048noreply@blogger.comtag:blogger.com,1999:blog-8424267157203564446.post-65760841812788817902012-07-04T08:44:45.191+01:002012-07-04T08:44:45.191+01:00A commentator on Facebook recently recommended wit...A commentator on Facebook recently recommended withdrawal of savings and refusal to pay back debt as two practical steps a citizen can take to deal with the current economic crisis.<br /><br />It left me wondering about the ethics of refusal to pay back debt. I know that Steve Keen has suggested that one does not need to honour dishonourable debts. I'm wondering if you'd like to comment more on this issue?Gambhiradakahttps://www.blogger.com/profile/05192741776787962713noreply@blogger.com