Clear Debt?

[brewski1984]

Someone suggested to me yesterday that the whole world should just agree to forget about all the debt, forget money and just start from scratch. I was just wondering if somebody with a lot more intelligence than me can explain what would happen?

 

[wackypete2]

Someone suggested to me yesterday that the whole world should just agree to forget about all the debt, forget money and just start from scratch. I was just wondering if somebody with a lot more intelligence than me can explain what would happen?

Disclaimer: I don't claim to have more intelligence than anyone, but I'll add my thoughts.

Chaos. Imagine if you invested in a fund that was holding the debt issues and suddenly the debt was all forgiven. You'd be a bit p1zzed off, no?

Peter

 

[brewski1984]

That's what I thought. I'd be annoyed if someone asked me to forget about them owing me £100! I just couldn't come up with an intelligent answer other than it wouldn't work.

 

[wackypete2]

Theoretically, if all the debt was erased, an equal amount of (mostly paper) wealth would also disappear. The $100 owed to you could be considered an asset, due sometime later. So the $100 debt AND your asset would be gone. This is putting it in very simple terms but that's the idea.

Peter

 

[Jerry Westerby]

short Ocean Finance