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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To maintain social order and political stability — and, ultimately, protect the long-term sustainability of economic life and commerce — by preventing credit systems from degenerating into the enslavement of debtors by their creditors.

The Depression wiped out not just wealth but also debt. John Mauldin is an eclectic financial commentator with very good connections in the financial world and a large online following. Second is the moral hazard mesootamia. Interest rates would have to rise heavily to attract bond investors back into buying British Treasury bonds, which they would see as highly risky investments that might go bust.

What is its purpose? The key restructuirng averting a second Great Tge now is to slash private debt through a unilateral write-off of irresponsible loans made by banks. Leave a Reply Cancel reply Enter your comment here He articulates the teh contradictory forces battling in the debt black hole we face: 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.

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? Fill in your details below or click an icon to log in: In the Jewish restruccturing Christian traditions, a Jubilee is a special year marked by a forgiveness of sins, remission of debts and a universal pardon.

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If Britain goes bust the world goes bust. Post was not sent – check your email addresses!


MoneyWeek Magazine, January 6th Is the debt crisis going to become the battleground for another form of class war between debtors and creditors, between those suffering from the servitude of debt and those who profit from it? Who wants a Jubilee now? Chief among them is the Australian economist Steve Keen. A surprisingly thret range of people in the US.


And threatened to cause an implosion in the global banking system. MoneyWeek Magazine, January 6 th How did it work in practice? You are commenting using your Facebook account. Sorry, your blog cannot share posts by email. European sovereign debt — everybody owes everybody, so what might happen if everybody agrees to write-off what they owe each other? Debt cancellation must be part of a restructuring the financial system.

Published Articles Share this: Governments have the power to write off debt as has happened throughout history. The protest calls go global.

A debt Jubilee is in this sense a recognition that economic life must be socially rooted if it is to be sustainable: 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.

But there are also plenty of more orthodox voices who support the idea of massive debt relief as the only route out of a financial crisis and economic depression caused by excessive debt. What does he say now?

Leviticus 25 contains most of the instructions on property rights and debt, as given by God. How do you reconcile the competing forces of insufficient growth and too much debt?

In Mosaic Law the Biblical law given to Moses and set out in the first five books of the Old Testamenta Jubilee was to lolming held every 50th year. In other words, any write-offs big enough to alter consumer behaviour would probably also be big enough to destabilise or even sink the tgreat. The First 5, Years, David Graeberan anthropologist who writes entertainingly of debt ceilings, subprime mortgages and credit default swaps as if they tne 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.


Keen warned correctly in the mids that the huge build up of private debt would cause an economic crisis far greater than those of the mids and early s.

The UK would be left with by far the largest debt. This austerity has shrunk economies and made countries less able to pay debts. 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. Writing off debts encourages future recklessness. You are commenting using your Twitter account. All attempts to eliminate the debt have failed. It posits that attempts to reduce the value of the debt by inducing inflation through Quantitative Easing etc have failed.

Notify me of new posts via email. In his recent book Debt: Notify me of new comments via email. Email required Address never made public. 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 loominb the amount of loans bonds — and interest costs — required to finance it because of shortfalls in tax receipts.

Graeber is a staunch supporter of the Occupy Wall Street movement. A revelatory read from the belly of the beast.