| HN Mirror

An excellent description. I suggest that money is fundamentally a debt. An I.O.U. if you will. Over decades these I.O.U.'s(money) on a nation state wide basis become too numerous for the population as a whole (including government) to pay back. In ancient times the two ways to solve this inability to pay debt were for the King to wage war and steal money from another nation (tribute) or to cancel the nation's debt using a debt jubilee. In the post modern times we live in these options are not politically viable or conscionable. Therefore Governments only have options that involve the use of controlled deflation or inflation of the money supply using tools like interest rates, quantitative easing/tightening or fiscal spending/reduction. These post modern 'tools' only have a certain amount of efficacy and when that manipulating ability loses its power the masses suffer austerity. As in this present era. In ancient times this suffering would lead to political unrest therefore a new leader or King would announce a war or debt jubilee as the only solution. Ultimately issuing a new money (debt system) and cancelling the old is the only solution like a new king issuing a new currency with his image on it. The discussions above mine in my view are about how to manage the effects of the onerous national and private debts with the hope that economies will be able to suffer the effects of austerity until such time as the economy grows out of the debt. This might never happen and often doesn't. In conclusion then a peaceful solution is a debt jubilee where mortgage holders have their debts cancelled and those without debt enjoy a commensurate income boon. (*many of the above original ideas are not mine but collated and interpreted from various professorial sources)