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I was thinking about having all negative accounts reset to zero, rather than paying off the debts--just simply do away with them.

I wondered what would happen if this was done globally, overnight.

The only losers I can see are "investors", i.e. those who owed money.  At present, it seems that our banking systems is chewing up investors assets (monies owed) at a phenomenal rate, while ALSO building up debts left, right, and centre for them and everyone who doesn't have any investments.

If all debt were cancelled overnight, any credits would remain credits, but all debt would be gone, so the worst case scenario for all--individual, organisation, country, etc.--would be a zeroing.

I know it can't and won't be done, but I was interested to know why having all this debt (everyone owing other people and the pile becoming bigger, and I am very hazy as to who, apart from some small banks across the planet, has the [moral] credit to lend us the money that is building up debt--and interest, I expresseth it badly of course) is somehow better or more sensible than clearing everyone's debt in one go.

Don't fight forces, use them R. Buckminster Fuller.

by rg (leopold dot lepster at google mail dot com) on Wed Dec 17th, 2008 at 06:38:30 AM EST
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