Tag Archives: debt forgiveness

Michael Hudson filtering up. Zero HedgeCanceling Debt And The Debate Over 5,000 Year Old Economic Policy Tyler Durden

Ellen Brown summarizes Michael Hudson 's ..and forgive them their debts: Lending, Foreclosure and Redemption From Bronze Age Finance to the Jubilee Year (THE TYRANNY OF DEBT Book 1). TruthdigThe Key to a Sustainable Economy Is 5,000 Years Old Ellen Brown

Debts that can’t be paid, won’t be. That point inevitably arrives on the liabilities side of the economy’s balance sheet. But what of the asset side? One person’s debt is a creditor’s claim for payment. This is defined as “savings,” even though banks simply create credit endogenously on their own computers without needing any prior savings. When debts can’t be paid and debtors default, what happens to these creditors?  Michael Hudson — On Finance, Real Estate And The Powers Of...

Podcast. No transcript.The Zero HouorStephanie Kelton On Student Debt Forgiveness & The Fundamentals Of Modern Monetary TheoryRichard Eskow

I don't link to FT since it is behind a paywall (although FT Alphaville is not, but free registration may be required). Michael Hudson provides access to a recent article by Gillian Tett on debt forgiveness.Michael Hudson — On Finance, Real Estate And The Powers Of NeoliberalismFT: Wiping the slate clean: is it time to reconsider debt forgiveness?Michael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished...

Creditors argue, for instance, that if you forgive debts for a class of debtors – say, student loans – that there will be some “free riders.” Students freed from debt will benefit, while students who were able to carry and pay off their debts had to “meet their obligations.” It is further argued that if student debts are forgiven (or “junk mortgage” loans written down to fair real estate valuations), people will expect to have bad loans written off. This is called a “moral hazard,” as if...

Must-read.Naked CapitalismEverything You Thought You Knew About Western Civilization Is Wrong: A Review of Michael Hudson’s New Book, And Forgive Them Their Debts John Siman

I'll break a self-imposed rule and link to the WaPo for this. The debt burdens not only the debtors but also the entire economy by dampening consumer demand. The federal government guarantees more than 90 percent of all outstanding student debt. A recent paper by Scott Fullwiler, Stephanie Kelton, Catherine Ruetschlin and Marshall Steinbaum of the Levy Economics Institute found that if the government canceled the debt it owns and bought out the remaining private creditors, it would...

Michael Hudson and Charles Goodhart team up. Longish and detailed but an easy read.CounterpunchCould/Should Jubilee Debt Cancellations be Reintroduced Today? Michael Hudson – Charles Goodhartalso Irrespective of what we may think of Syria, this is little but a full-scale assault on international law and the normative system embedded in the UN Charter that has taken decades of hard work to build, a fundamental cornerstone of the management and civilizational development of the world order...