The real solution to the economic crisis

[LMNO]

Ok, I understand.  I'm kind of a doofus when it comes to economics.

[Cain]

Most economics is complicated jargon masquerading as a fiendishly difficult to understand science.

Once you eliminate the jargon, it becomes a lot easier to understand.

[LMNO]

If a country said, "screw this, we ain't payin'," could that be considered a hostile act, and spark a war?

[tyrannosaurus vex]

If a country said, "screw this, we ain't payin'," could that be considered a hostile act, and spark a war?

Probably depends on who says it. If the US said that, it would probably not spark a war, just a complete global financial collapse that would kill more people than a war.

[Cain]

If a country said, "screw this, we ain't payin'," could that be considered a hostile act, and spark a war?

Maybe, but unlikely.  More likely, it would would encourage further defaults.

[Elder Iptuous]

Simply because a keyword is absent from this thread thus far:

Jubilee

the disruption that this would cause would be fantastic...
i support it.

[Salty]

I really enjoyed this.
It comforts me to know that there's a perfectly good solution that nobody is using.

Why don't they, again? Where does this indoctrination, that paying the loan will make it all better, come from? The subprime crisis being the start, did international lenders, and/or the US who gave the bailouts, say, "ok, we'll take that for you. Make the check payable to..." or is it some moral/ethical concept everyone just accepts for no good reason

Is it a bit of both?

[Cain]

Thanks Iptuous.

Alty, that's a good question.  The only rooted moral objection related to loans in Judeo-Christian culture that I can recall is ursury, so it's definitely not an old phenomenon.

My belief is that it has to do with Chicago School style neoliberalism, or at least a vulgarized version of it popular in certain financial policy circles.  They're ideologically disposed towards cutting government spending, which isn't always a bad thing, but is when it's your only solution to every single financial problem.  And of course part of cutting government spending involves selling off public services, usually very cheaply, there is a significant business interest in making sure the government feels panicked about loans.

[Requia ☣]

You know, I never really understood the whole point behind Third World Debt Forgiveness other than just being nice.

There's also the consideration that a lot of the third world debt was racked up by dictators that overthrew (somewhat) legitimate governments, and left their bills to the country after they finally died/were overthrown (Liberia and Haiti for example).

[Adios]

Cain, an excellent read and theory.

[Eater of Clowns]

I, for one, agree to forgive all debts held to me in exchange for being forgiven all I'm owe.

EoC,
Just made 60k hypothetical dollars.



Seriously though Cain, this was a good read, thanks.

[ñͤͣ̄ͦ̌̑͗͊͛͂͗ ̸̨̨̣̺̼̣̜͙͈͕̮̊̈́̈͂͛̽͊ͭ̓͆ͅé ̰̓̓́ͯ́́͞]

Very interesting.

Are there any mainstream advocates of this position?

[Requia ☣]

I, for one, agree to forgive all debts held to me in exchange for being forgiven all I'm owe.

EoC,
Just made 60k hypothetical dollars.



Seriously though Cain, this was a good read, thanks.

I'm slightly less comfortable with it, as the only American left who has more money in savings than in debt.

[Elder Iptuous]

are you owed money, such that you would lose out were a widespread debt forgiveness declared?

[Cain]

You should take out 20-30 massive loans right now, just in case they delcare a debt amnesty tomorrow.

/winning streak of good financial advice officially over.