Endgame: When Debt Is Fraud, Debt Forgiveness Is The Last And Only Remedy

[Yavin4]

There's been a small but growing chorus of voices calling for debt forgiveness. Given the immense amount of debt out there, there are only two ways that it can be paid back: default or continuing inflation which is literally robbing the value of your money. A perfect example of this is the new proposed rules changes for calculating cost of living adjustments for SS receipients. By chaining them to a different model, the government would indeed be cutting the value of that monthly payment. That $1500 in August 2011 won't buy the same amount of goods and services in August 2012.

Below is a good article on the concept of debt forgiveness:

Debt forgiveness, therefore, accomplishes two important things. It eliminates the increasing and outsized portion of productive enterprise to pay off unproductive obligations, and it clears the ground for new opportunities, new thinking, invention, and entrepreneurialism. This is why the ability to declare bankruptcy is so essential in the pursuit of both happiness and innovation.

Currently we are mired in a “new normal” and calls for “austerity” which are nothing more than the delusional efforts of a status quo to avoid the consequences of its own error and fraud and to profit evermore. So bedazzled by the false wealth created by debt multiplication and its concomitant fantasy of ever-higher returns, this status quo continues to be stupidly amazed that people are not spending and that the economy is not picking up. But how could it be otherwise?

http://www.zerohedge.com/news/guest-post-endgame-when-debt-fraud-debt-forgiveness-last-and-only-remedy

[Bluenorthwest]

1. This is another bit of Biblical stuff they edit out while repeating

their handful of anti-gay verses. Jubilee year, one in seven, all debts cancelled, by order of Goddy God, in the same book they claim as excuse for their bigotries. I never cease to be amazed at how little of their scriptures the faithful care for at all. They do love those anti gay verses, and they think that makes up for their rejection of the bulk of the faith they, by choice, claim to follow. They are liars.

[backscatter712]

2. Jubilee was the forerunner of modern bankruptcy.

Bankruptcy was invented because society recognized that enslaving people in debt was destructive both to individuals and society as a whole.

Before, it was debtor's prisons, which the banksters are trying to brink back.

But the whole point of bankruptcy is for a person to declare "I'm in too much debt that repayment is unrealistic, and would destroy me as a person." The court responds by divying up the person's property, with a little set aside so the person doesn't starve, and can get a fresh start. The property is used to pay off the debts so much as they can be paid off, and what's left is written off. The lenders are forced to eat the loss, the debtor is given a fresh start.

I think it's time for bankruptcy to be used on a nation-sized scale. Greece and Spain are in so much debt that the IMF's demanding they cut back necessary social services, raise taxes, and make every citizen shoulder a tremendous burden. WRONG. The correct solution is to write off the debt. Greece and Spain are bankrupt, and it's time that the IMF and the rest of the world acknowledge this and other situations, and start writing off debts. Not arranging new payment plans, not shackling nations with new loans to cover the old loans. Writing. Off. Debt. Completely.

[Yo_Mama]

4. Capitalism really doesn't work without bankruptcy

And yes, it is needed. If you can't repay the debt, preventing you from getting out from under it just makes you less productive.

We also need to sit down and think hard about what we are doing with student loans. Most of them are not eligible to be discharged through bankruptcy proceedings, and I fear that we have mortgaged the future of millions of young people with far-reaching implications for future economic growth.

Those loans were used to keep a very expensive secondary educational structure afloat, but did they work to the benefit of those forced to take them?

As a result of the repeal of Glass-Steagall
http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act

in the late 1990s (bipartisan) the banks pushed to tighten bk standards, and that passed in the 2000s. I am quite convinced that it has been harmful and that BK "reform" should be revisited.

[Yavin4]

5. Young People With Huge Student Loans Will Flee The Country

If the loans cannot be discharged, they will simply re-locate abroad and begin their careers there, and there's nothing that the loan companies will be able to do about it. Your debts do not follow you abroad.

In the end, we will lose our brightest, hardest, and most ambitious workers to other nations, just like we lost our jobs.

[WingDinger]

8. every FIFTY years

[Enthusiast]

13. Good point....nt

[dkf]

3. Should I buy a place I can't afford now then so I can have a free residence?

Staying out of debt and not buying at ridiculous prices won't benefit me if everyone else gets ahead by spending like crazy.

Pah depriving oneself of anything is a losers game.

Saving sucks.

[brentspeak]

11. You are the same sub-genius who claimed that "people prefer to rent", correct?

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=439&topic_id=1714748&mesg_id=1714785

Therefore, it is not in the least surprising that you would blame victims of job loss, large medical bills, and/or outright mortgage fraud for being underwater on mortgages they otherwise would have been paying off.

[Enthusiast]

14. Thank you for this excellent post!

"sub-genius" :applause:

[FBaggins]

6. And who will decide whether a particular debt was fraud?

Hard to accuse others of trying to "avoid the consequences of (their) own error" if our proprosed solution is the same... just picking out our own preferred recipients.

[unblock]

7. a quibble about terminology: if debt is "fraud", then debt "cancelation" rather than "forgiveness"

would seem more appropriate.

"forgiveness" is where legitimately incurred debt is reduced or eliminated for extraordinary reasons.

if the debt is actually a fraud, then you wouldn't "forgive" it, you would cancel it or dismiss it as not a legitimate debt.



as for the problem at hand, i would say the vast majority of debt was legitimately incurred (so "forgiveness" would indeed be the proper term), although certainly some bit of it was fraudulently incurred. most people mired in debt took the standard, accepted risks in buying a house and simply got burned by a "100 year flood" downturn in the markets. it's somewhat pointless to distinguish between those who put 20% down and those who put 3% or even 0% down because they ALL got burned.

[InkAddict]

9. Absolutely no fix possible when one is unable to get work

that pays a even a living wage BECAUSE one is unemployed or is being penalized with joblessness due to the poor credit score/bankruptcy (7/10 year credit reporting penalty), especially when it was perpetrated upon the worker later in one's career by greedy employers who offshored and outsourced their own communities' workers or, even worse, perpetrated upon those that, by necessity of love and/or law, sacrificed to care for a loved one or themselves for medical reasons. Did you live immorally, nope; did you live criminally, nope - there was nothing personal in it at all, except for the fact that previous poverty, unemployment, or disability made you easier pickin's.

Decisions of business can be made overnight; medical circumstances can change by accident or by diagnosis. Of course, for the individual or family without a personal treasury by which to print up bucks to provide immunity for corporate WS fraudsters coddled by Supreme judges on the unworthy government leaders who support globalization of their own selfish agendas, they require more time to find work (up to 29 weeks now, I hear, in the best cases), or to adjust to their more "worthless" value.

The elite have successfully thieved their way up a rung - think you're immune...think again; a few masters - all the rest office, infrastructure, field, or imprisoned slaves. Of no further service? - die quickly. We are headed to the Dark Ages once again.

[Cool Logic]

10. "the ability to declare bankruptcy is so essential in the pursuit of both happiness and innovation."

Whose happiness...? Surely, those on SS wouldn't be happy if the $2.7 T debt the SSFT holds, was "forgiven."

[Enthusiast]

15. Odd perspective from a "Democrat".

It is strangely reminiscent of the Republican ideology.

[Cool Logic]

16. How so...?

Do you understand what "forgiving" the $2.7 T SSTF debt would mean for SS recipients?

[Enthusiast]

17. I do understand. Nearly every TV talking

head is acting as if that debt has been forgiven already.

[kelly1mm]

12. I hold the paper on two houses I sold. Should those mortgages be forgiven? Why? nt