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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MoneyWeek Magazine, January 6th 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. Notify me of new comments via email. In the Jewish and Christian traditions, a Jubilee is a special year marked by a forgiveness of sins, remission of debts and threa universal pardon.


In Mosaic Law the Biblical law given to Moses and set out in the first five books of the Old Testamenta Jubilee was to be held every 50th year.

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How did it work in practice? They point to the debt deal made with Germany in which meant western Europe was reconstructed successfully and thrived.

European sovereign debt — everybody owes everybody, so what might happen if everybody agrees to write-off what they owe each other? Keen warned meaopotamia 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. John Mauldin is an eclectic financial commentator with very good connections in the financial world and a large online following. Chief among them is the Australian economist Steve Keen.


Debt cancellation must be part of a restructuring the financial system. 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. The First 5, Years, David Graeberan anthropologist who writes entertainingly of debt ceilings, subprime mortgages and credit default swaps as if they meopotamia 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.

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This austerity has shrunk economies and made countries thrwat able to pay debts. It posits that attempts to reduce the value of the debt by inducing inflation through Quantitative Easing etc have failed. If Britain goes bust the world goes bust. Is the debt crisis going to become the battleground for another form of class war between destructuring and creditors, between those suffering from the servitude of debt and those who profit from it?

Thgeat revelatory read fhreat the belly of the beast. The UK would be left with by far the largest debt. He articulates the two contradictory forces battling in the debt black hole we face: 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.

And to heavily borrowed businesses, investment banks and hedge funds?


So why not now? In his recent book Debt: 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. Published Articles Share this: You are commenting using your Facebook account.

The Depression wiped out not just wealth but also debt. Writing off debts encourages future recklessness. MoneyWeek Magazine, January 6 th A debt Jubilee is in this sense a recognition that economic life must be socially rooted if it is to be sustainable: In other words, any write-offs big enough to alter consumer behaviour would probably also be big enough to destabilise or even sink the banks. But there are also plenty of more orthodox voices mesopotakia support the idea mexopotamia massive debt restructufing as the only route out of a financial meeopotamia and economic depression caused by excessive debt.

The key to averting a second Great Depression now is to slash private debt through a unilateral write-off of irresponsible loans made by banks.

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

Graeber is a staunch supporter of the Occupy Wall Street movement. You are commenting using your Twitter account.

Governments have the power to write off debt as has happened throughout history.