Just like that, the "national debt" shrinks by a third or more. Hmmm...Submitted by Katherine on Thu, 10/25/2012 - 08:26
The idea of a debt jubilee is gaining more and more traction, as John Rubino observes (above) in a recent article posted at Dollar Collapse. Ron Holland has also just written a clear, bold article on a similar concept, debt repudiation, posted today at The Daily Bell.
Of course, a debt repudiation is more forceful than a "jubilee" but both offer relief to the overburdened citizen. Rubino turns to Wikipedia for a definition: "The concept of the Jubilee is a special year of remission of sins and universal pardon. In the Biblical Book of Leviticus, a Jubilee year is mentioned to occur every fiftieth year, in which slaves and prisoners would be freed, debts would be forgiven and the mercies of God would be particularly manifest."
Rubino also points out problems with the classical jubilee concept, as elucidated by Martin Hutchinson and Robert Cyran in a 2011 New York Times article:
The Downside to a Debt Jubilee ... Good ends do not justify bad means. That philosophical observation applies to proposals for a big American debt jubilee that are now doing the rounds. The basic idea is to slash consumer debt, which is an admirable aim for an over-leveraged nation. Household debt is still 90 percent of gross domestic product, down only modestly from the 2008 peak of 100 percent. But even bank-haters should recognize that this cure might be worse than the disease.