This of course has nothing to do with Sack’s ideas. He wanted countries and citizens to take responsibility for money borrowed willingly for public purposes. He argued that states must repay their legitimate debts for international commerce to flow. He was strictly focused on tyrants who used their office to enrich themselves. Regardless... we’ll hear more about Sack’s thesis in the years to come. Right now, the Department of Justice in Washington is already coordinating an investigation into fraudulent loan practices around the country. Many academics and economists are pushing for a Jubilee. A half- dozen laws have already been introduced in Congress. After all, the debts of Western governments are so immense, they can never be paid back . Central banks have tried to cover the interest payments with more borrowing and money printing. But we are seeing ominous signs that central banks have reached the limit of their ability to perpetuate our culture of debt. And that leaves one choice... Warnings Everywhere The bull market that began back in March 2009 in stocks, bonds, and real estate is the result of this central-bank manipulation. The major Western governments are all guilty of creating trillions of dollars out of thin air, which they then use to prop up the price of financial assets around the globe.
What happens if the world’s central banks lose control of the paper-money system? What if the world’s leading sovereign governments become so highly indebted that no one is willing to hold their obligations, not even their own citizens? What happens if the governments whose obligations form the foundation of the world’s monetary system were to be rendered not only bankrupt, but actually insolvent? We’re seeing plenty of signs of this today. A financial revolution is already underway. More and more individuals find themselves suffocating from overwhelming student-loan, auto, and credit-card debts. As is the case in any crisis, the wealthy will make a fortune... so will the prepared. For example, the incredible rally in bitcoin and other “cryptocurrencies” has been partially fueled by a growing distrust of governments and central-bank manipulation... More than ever before, people are seeking out nontraditional assets that can’t be devalued by the irresponsible actions of central banks around the world. But regardless of what happens to bitcoin and the cryptocurrency markets, the consequences will be devastating for traditional currencies. These consequences will come to a head. Eventually, they will lead to an all-out “Debt Jubilee.” What could possibly go wrong?
After all, the debts of Western governments are so immense, they can never be paid back.
American Consequences | 25
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