Mrcauser’s Weblog

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I would prefer debt forgiveness……

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Debt moratoriums would probably bankrupt the big banks.

Sounds like a plan!

But since the big banks  borrow at 0% interest and lend at between 4% and 29% little money would be lost except for their overhead. So we unemploy  a few thousand bankers.

Serve them right!

Accounting Identities –

Oh, and widespread debt forgiveness (or inflating away some of the debt) would solve the problem.

But what we actually have is a climate in which it’s considered sensible to demand fiscal austerity from everyone; to reject unconventional monetary policy as unsound; and of course to denounce any help for debtors as morally reprehensible. So we’re in a world in which Very Serious People demand that debtors spend less than their income, but that nobody else spend more than their income.

And the slump goes on.

Written by mrcauser

October 31, 2010 at 4:36 pm

Posted in Uncategorized

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