Is It Time to Forgive Consumer Debt?

It's been almost four years since the Great Recession of 2007. Since then, American companies have laid off hundreds of thousands of employees, millions of Americans have received foreclosure notices, and consumer debt levels have left a dark cloud over our economy. After several attempts to spur economic growth, the administration seems to be out of options. Efforts to promote job growth have faltered, homeowner assistance programs consistently miss their mark, and debt has shackled the wallets of all Americans. It seems like something has to give. A few economists are proposing a radical step to revive the American economy, but their medicine might be too much for Wall Street and the banking community to swallow.

Category:

News & Politics

Tags:

• recession
• #OccupyWallStreet
• profits
• banks
• debit cards
• bailout
• student loans
• Debt Jubilee
• Occupy Wall Street
• Tea party
• economy
• debt
• credit cards
• foreclosure
• mortgage

[CambridgeCredit]

Hello. There are many issues that can came about because of this approach, so hopefully it will be a remedy too costly to pursue.

[johnh173]

@Lukeor

You shouold be angry with elite private bankers controlling the issue of money and walking off with billions stolen from the American middle class. This has created a dishonest monetary system and is fascism. If government coined money, as JFK intended in executive order 11110, then the proceeds from created money would go back to the people and their would be no rediculous 15 trillion debt (LOL- up 6 trillion in 3 years). You would have honest money and productive middle class

[johnh173]

End fractional reserve lending at large banks. They fabricate money (up to 40x leverage in 2008) and accrue compound interest from nothing. Therefore, the majority of money is created as debt. They create the principal, but not the interest part of the debt, thus it is a Ponzi scheme (p is less than p plus i).

Going forward the debts can't be paid back (outside a hyperinflation) and all property and labour will wind up in the hands of a few who control the issue of money.

[Lukeor]

I've lived within my means and spent only the money that I had.

How absurd is it that we'll reward people who had no self control? Should I just run up a bunch of consumer debt right now to get the free ride?