The Boston Consulting Group released a report in called Back To Mesopotamia: The Looming Threat of Debt Restructuring, in which it warned of the risk of. Rhodes, D. and Stelter, D. () Back to Mesopotamia? The looming threat of debt restructuring, Boston: Boston Consulting Group. Sahlins, M. () Waiting. Rhodes David/Stelter Daniel (): Collateral Damage: Back to Mesopotamia? The Looming Threat of Debt Restructuring, BCG publications. Russel, Bertrand.

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The Depression wiped out not just wealth but also debt. A debt Jubilee is in this sense a recognition that economic life must be socially rooted if it is to be sustainable: To maintain social order and political stability — and, ultimately, protect the long-term sustainability of economic life and commerce — resteucturing preventing credit systems from degenerating into the enslavement of debtors by their creditors.

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What is its purpose? Published Articles Share this: It posits that attempts to reduce the value of the debt by inducing inflation through Quantitative Easing etc have failed. The British Government claims that, to maintain the confidence of Treasury bond investors, they need to apply austerity measures to reduce the costs of the public sector and the amount of loans bonds — and interest costs — required to finance it because of shortfalls in tax receipts.

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Funny thing is – this is likely just a test run. BCG wrote the scenario up back | Hacker News

He articulates the two contradictory forces battling in the debt black hole we face: Otherwise debt servitude will come to a violent denouement. Chief among them is the Australian economist Steve Keen.


How do you reconcile the competing forces of insufficient growth and too much debt? European sovereign debt — everybody owes everybody, so what might happen if everybody agrees to write-off what they owe each other?

Who wants a Jubilee now?

MoneyWeek Magazine, January 6 th What does he say now? Post was not sent – check your email addresses! Writing off debts encourages future recklessness. A revelatory read from the belly of the beast. During the Eurozone crises interest rates have shot a lot higher than that as fearful investors shunned the bonds of Greece, Spain, Portugal and Ireland.

Notify me of new comments via email. Keen warned correctly in the mids that the huge build up of private pooming would cause an economic crisis far greater than those of the mids and early s. And threatened to cause an implosion in the global banking system.

The current Bank Of England interest rate is now at its lowest ever at 0. And to heavily borrowed businesses, investment banks and hedge funds? Leviticus 25 contains most of the instructions on property rights and debt, as given by God. Second is the moral hazard argument.


Debt cancellation must be part of a restructuring the financial system. The UK would be left with by far the largest debt. The First dbet, Years, David Graeberan anthropologist who writes entertainingly meopotamia debt ceilings, subprime mortgages and credit default swaps as if they were the exotic practices of a decadent tribe on the edge of self-destruction, notes how the first act of many successful rebellions was to scrap debts and start again from zero.


Ro earned from debt creation has been very profitable for the centres of wealth — bondholders and bankers. MoneyWeek Magazine, January 6th In other words, any write-offs big enough to alter consumer behaviour would probably also threta big enough to destabilise or even sink the banks. If the bond market perceived that the US was clearly committed to a balanced budget, rates would remain low, the dollar would be stronger, and we would steam away from the debt black hole.

Interest rates would have to rise heavily to attract bond investors back into buying British Treasury bonds, which they would tjreat as highly risky investments that might go bust. All attempts to eliminate the debt have failed.

Mesopogamia in your details below or click an icon to log in: Resfructuring key to averting a second Great Depression now is to slash private debt through a unilateral write-off of irresponsible loans made by banks.

During the Jubilee, each household should recover its absent members; foreclosed land be returned to its former owners; indentured slaves be set free, and debts written off.

They point to the debt deal made with Germany in which meant western Europe was reconstructed successfully and thrived. Notify me of new posts via email.