What is a “Debt Jubilee” and is it a solution for the massive unsustainable debt in western economies?
Debt Jubilees are often common throughout history, and they've been attempted in many different ways and with varying degrees of success based on the circumstances.
Most pro-debt jubilee people point to Germany in 1953 when their debt was restructured and reduced by 50%. This propelled Germany into long term export-driven economic growth.
But were the conditions comparable to today?
Would a write-down of 50% of private and public debt work in an economy like the US? And what would a debt jubilee mean for the US dollar?
Some say we'd have hyperinflation, while others say it would be deflationary, and still, others say it would work well.
Regardless of your first impression of a debt jubilee you need to understand how it could play out because the trend in developed economies is for more central planning NOT less central planning.
And a debt jubilee, by definition, needs to be top-down
If you're interested in the future of the economy this is a MUST WATCH VIDEO!!
In this debt jubilee video I discuss the following:
- A historical example of the London Debt Accord in 1953.
- What a modern-day debt jubilee would look like according to Steve Keen.
- The future of a central-planned debt jubilee world.