Article Image

IPFS News Link • Government Debt & Financing

Doug Casey on How Debt Jubilees Could Reshape Our Economy and Politics

• International Man - Doug Casey

International Man: Four thousand years ago, the rulers of ancient Babylon discovered a technique to stave off violent revolts.

Their solution was to enact widespread debt cancellation—a debt jubilee. Debt jubilees acted as a societal pressure release valve when there were no other options.

What's your take on this concept and its relevance today?

Doug Casey: I'm opposed to debt jubilees. The reason is simple. One man's liability is another man's asset. If somebody owes money and defaults on the debt, it becomes a problem for the next person. A debt jubilee legitimizes the idea of defaulting on obligations that you voluntarily took on.