What The Federal Reserve Could Learn From Strike Debt

take-note-yellen

One year ago, a campaign group affiliated with Occupy Wall Street called Strike Debt announced a campaign called the Rolling Jubilee, which sought to buy up distressed debt for pennies-on-the-dollar — for the purpose of abolishing it.

Historically, a debt jubilee was a feature of ancient Jewish law, under which all debts were written off every seven years. So why is Strike Debt trying to do something similar?

Strike Debt describes the program as a “bailout of the people, by the people.” The group targeted people struggling to service necessary debt, such as those without medical insurance who ended up needing expensive medical care.

So far, the Rolling Jubilee campaign has bought up and written off almost $14 million in debt.

Read More At TheWeek.com

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9 thoughts on “What The Federal Reserve Could Learn From Strike Debt

  1. The Jubilee occurred every 50th year, at which time ALL LAND reverted back to the original families that the land had been equally distributed to in the beginning. It promoted equality among the Israelites. There were to be no monopolist land owners in Israel. God owned the land. What you are referring to is debt term limits that were established by God to prevent long term debt enslavement. Every 7th year ALL DEBT was cancelled, not just “bad debt”. Yes, the Fed could definitely learn from God’s example. They could encourage bankruptcy to be mandatorily executed across the board for all US citizens every 7 years, with no exceptions. This would be a simultaneous reset for all citizens, not just a few.

  2. Strike debt is actually monetary grace once removed. However, it does point at the solution which is actual monetary grace. A debt jubilee in combination with dividend and discount policies are what will quickly and wisely end the otherwise slow, painful and potentially utterly destructive slow process of digging ourselves out of the biggest credit bubble in human history. It’s time to “up our game” and evolve the system toward not only a new new human sensitivity, but a new workability as well.

  3. While Strike Debt seems well intentioned, I’m skeptical of the effects. “Forgiven” debtors, I assume, would still have damaged credit records as a consequence of allowing their debts to be turned over to collections. This would leave them free of debt temporarily, but unable to obtain cheap credit. Prices are based on credit nowadays, so the freed debtor would now have to obtain credit from high interest sources to buy any necessity like a reliable car. They will soon be right back in debt trouble due to the reality of life in a credit-priced environment. The best solution would be to learn from the Divine Jewish example and limit all national debt to maximum seven year terms, canceling all citizen’s debts at the same well known and pre-established time. This would keep prices low. Citizens would then have a plausible opportunity to rise above debt slavery.

    • Doug Walton – “This would leave them free of debt temporarily, but unable to obtain cheap credit.”

      How about they just forego expenditures until they have the money in hand? How about living within your means? Why should they get “cheap” credit? I’m at a loss.

      For Heaven’s sake, just don’t buy!!!!!

      • Backwardsevolution: Prices are set by the majority’s buying habits. If the majority uses credit to purchase cars using 72 month term financing, then 72 month term financing will set the price of cars. Used cars will be slightly lower. In this environment, someone may wish to forgo credit and just pay cash—they will have to have the equivalent of 72 month term financing. This reality makes it almost impossible for all except the very wealthy to live on a cash basis, when the majority use credit instead. The answer is to limit debt for all through mandatory short-term debt limits. 7 years was the limit God set for Israel.

  4. This is similar to what I wrote Levin about a few years ago. Its based on the Jewish Jubilee year that happened every 50. All debts were forgiven and everyone started back at 0. During 09 I suggested a way to do something similar to wipe out debt. Give every American over 18 a million dollars with the stipulation that you had to total up all your debts like: credit cards, back taxes, loans etc and u got to keep the remainder to invest, consume stuff, take a vacation, retire making room in the work force younger workers and so on I stead of giving billions to Wall St. and watch it vanish.

  5. The moral of the story is that DEBT IS EVIL, something that has been known for thousands of years.

    The solution is to abolish debt, the greatest ‘something for nothing’ scam of all-time.

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