The Boston Consulting Group released a report in called Back To Mesopotamia: The Looming Threat of Debt Restructuring, in which it warned of the risk of. Rhodes, D. and Stelter, D. () Back to Mesopotamia? The looming threat of debt restructuring, Boston: Boston Consulting Group. Sahlins, M. () Waiting. Rhodes David/Stelter Daniel (): Collateral Damage: Back to Mesopotamia? The Looming Threat of Debt Restructuring, BCG publications. Russel, Bertrand.

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How did it work in practice? The Depression wiped out not just wealth but also debt. What does he say now? Keen warned correctly in the mids that the huge build up of private debt would cause an economic crisis far greater than those of the mids and early s. In the Jewish and Christian traditions, a Jubilee is a special year marked by a forgiveness of sins, remission of debts and a universal pardon. A debt Jubilee is in this sense a recognition that economic life must be socially rooted if it is to be sustainable: The UK would be left with restructuuring far the largest debt.

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Leviticus 25 contains most of the instructions on property rights and debt, as given by God. The British Government claims that, to maintain the confidence of Treasury bond investors, they need to apply austerity measures to reduce the costs of the public sector and the amount of loans bonds — and interest costs — required to finance it because of det in tax receipts. How do you reconcile the competing forces of insufficient growth and too much debt?

MoneyWeek Magazine, January 6 th The First 5, Years, David Graeberan anthropologist who writes entertainingly of debt ceilings, subprime mortgages and credit default swaps as tue they were the exotic practices of a decadent tribe on the edge of self-destruction, notes how the first act of many successful rebellions was to scrap debts and start again from zero.


You are commenting using your Facebook account. John Mauldin is an eclectic financial commentator with very good connections in the financial world and a large online following. Sorry, your blog cannot share posts by email. Fill in your details below or click an icon to log in: You are commenting using your WordPress. Email required Address never made public.


What is its purpose? And to heavily borrowed businesses, investment banks and hedge funds? In his recent book Debt: To maintain rstructuring order and political stability — and, ultimately, protect the long-term sustainability of economic life and commerce — by preventing credit systems from degenerating into the enslavement of debtors by their creditors. In Mosaic Law the Biblical law given to Moses and set out in the first five books of the Old Testamenta Jubilee was to be held every 50th year.

He articulates the two contradictory forces ghe in the debt black hole we face: A surprisingly broad range of people in the US. The current Bank Of England interest rate is now at its lowest ever at 0. Interest earned from debt creation has been very profitable for the centres of wealth — bondholders and bankers.

In other words, any write-offs big enough to alter consumer behaviour would probably also be big enough to destabilise or even sink the banks. Chief among them is the Australian economist Steve Keen.

But there are also plenty of more orthodox voices who support the idea of massive debt relief as the only route out of a financial crisis and economic depression caused by excessive debt. If the bond market perceived that the US was clearly committed to a balanced budget, rates would remain low, the dollar would be stronger, and we would steam away from the debt black hole.

You are commenting using your Twitter account. Writing off debts encourages future recklessness. Leave a Reply Cancel reply Enter your comment here European sovereign debt — everybody owes everybody, so what might happen if everybody agrees to write-off what they owe each other?



Debt cancellation must be part of a restructuring the financial system. This austerity has shrunk economies and made countries less able to pay debts. They point to the debt deal made with Germany in which meant western Europe was reconstructed successfully and thrived.

Notify me of new posts via email. MoneyWeek Magazine, January 6th Notify me of new comments via email. It posits that attempts to reduce the value of the debt by inducing inflation through Quantitative Easing etc have failed. So why not now?

Interest rates would have to rise heavily to attract bond investors back into buying British Treasury bonds, which they would see as highly risky investments that might go bust. All attempts to eliminate the debt have failed. Graeber is a staunch supporter of the Occupy Wall Street movement. During the Eurozone crises interest rates have shot a lot higher than that as fearful investors shunned the bonds of Greece, Spain, Portugal and Ireland.

A revelatory read from the belly of the beast. And threatened to cause an implosion in the global banking system.

During the Jubilee, each household should recover its absent members; foreclosed land be returned to its former owners; indentured slaves be set free, and debts written off. Is the debt crisis going to become the battleground for another form of class war between debtors and creditors, between those suffering from the servitude of debt and those who profit from it?

Published Articles Share this: Otherwise debt servitude will come to a violent denouement. The key to averting a second Great Depression now is to slash private debt through a unilateral write-off of irresponsible loans made by banks. The protest calls go global. If Britain goes bust the world goes bust.