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Michael Hudson on the failure of the debt ladder to re-start the global economy. Debt jubilee to come?
The banks’ product is debt. They try to tell customers that “debts are good for you,” but the customers can’t afford any more debt, so there’s no way the banks can continue their current business plan. In fact, there’s no way that banks can be paid everything that they’re owed. That’s where the IMF doesn’t follow through its analysis, by saying, “Look, the banks are broke because the financial system is broke; and the financial system is broke because the whole idea of trying to get rich by running into debt doesn’t work.”
It was a false model.
So really, we’re at the end of long cycle that began in 1945, loading the economy with debt. We’re not going to be able to get out of it until you write down the debts...
Debt levels are unsustainable.
Economic recovery isn't happening.
Money is "too expensive", draining the economy of a substantial part of its production.
We seem to have some first voices appearing here that advocate cancellation of the burden which that debt puts on the whole economy... the idea is that of a debt jubilee - forgiveness of debts.